Corporate income: how to deal with the increase in this tax for 2024?

With the recent tax changes that are taking place in Colombia, the business landscape in the country faces great challenges to be able to comply with all the taxes that are currently stipulated, both for micro, large or small firms throughout the country, especially in this context of economic slowdown.

One of the most notable changes is the corporate income rate, which currently stands at 35% of its profits, a tax that is positioned as one of the highest among the countries of the Organization for Economic Cooperation and Development. surpassing nations such as Australia, Mexico and Portugal, which maintain a rate of 30%.

In this sense, Alexander Hernández Fuentes, an expert in corporate financial consulting, expresses that this type of increases must be understood as a whole, since although it means greater income for the Nation, these resources come out of the pockets of businessmen, who do not They are having a good time right now.

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“The increase in the rate that went from 33% to 35%, stands out as one of the most significant changes. This increase can directly affect business finances, so it is crucial to plan tax payment strategies appropriately and do correct tax planning,” he said.

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However, this tax analyst added that although the outlook brings many challenges for 2024 with the payment of taxes, there are ways out and mechanisms that can help reduce this burden, all within what is stipulated. the regulations authorized by Dian.

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“Companies must consider the benefits that are deductible from income, such as third-party withholdings on sales that are supported with certificates, prepaid health payments and academic support for employees, which can not be explicitly contemplated in the tax statute,” said Hernández Fuentes.

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On the other hand, it is worth noting that the total number of currently active companies according to the report of the Ministry of Commerce, Industry and Tourism is 1,853,509; which must comply with the tax deadlines, it is worth clarifying that submitting said income tax return does not mean that you must always pay tax.

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“To stay up to date with tax obligations, the Dian has issued a tax calendar so that they keep in mind the dates as appropriate for each case. For example, for large taxpayers, the last installment is from June 13 to 26, and for legal entities, the declaration and payment of the first installment is in May from 10 to 24,” said Alexander Hernández.

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Taking the above into account, remember that failure to comply with these deadlines carries the risk of incurring interest and penalties, which could seriously affect the financial health of the company. Furthermore, in the case of declaring but not paying or evading, the consequences can ranging from monetary fines to the possibility of facing a custodial sentence.

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Although the increase generated in the income rate with the tax reform is only 2 points, compared to this increase Alexander Hernández states that “this change affects numerous business models that, although they do not record losses, operate with very high profit margins. reduced.”

Microbusinesses

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In this sense, he maintains that “this is due to the dynamics of businesses of companies such as large stores or retailers, which sell products manufactured by others or distributed by third parties. Therefore, the impact will be reflected in profits despite having a considerable sales volume.”

Finally, it clarifies that the income tax return and payment of the tax are essential processes that companies in Colombia must carry out to comply with their tax obligations; it must be kept in mind that submitting does not always mean paying.

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“Keeping up to date with these aspects not only guarantees compliance with the law, but also contributes to the reduction of the 108 billion pesos, tax evasion figure presented in the accountability by Dian,” he concluded.