Colombian Accounting

Colombian Tax Planning

Not sure about Colombian taxes, get a tax planning consultation to study your case!

Colombian Personal Taxes

Specialized with declaring foreigners taxes, and foreign assets in Colombia

Colombian Corporate Accounting

Over 10 years of experience with accounting servics for multinationals in Colombia, our team can handle all sectors.

Colombian Payroll Services

We are here to help you calculate payroll & employee taxes under complex Colombian rules.

Understanding Colombian Accounting:

While basic principals are the same for accounting in Colombia as in other parts of the world, you will find substantial differences in Colombian accounting reports and tributary laws. It is much more than simply a matter of translating titles of reports and keywords within the reports. It takes experienced Colombian accountants to ensure you get the important information you need with the high standards you are accustomed to.

For example, corporations have to file taxes on a monthly basis, and personal taxes are filed every August in Colombia. The dates for filing different corporate taxes depend on the last two digits of the corporate ID and the last two digits of the Colombian ID card for personal income tax filings. To make things even more complicated, the dates are constantly changing to make things more complicated. You will find that an important part of living in Colombia stress free is to find an experienced and qualified Colombian Accountant to help you out.

Transparency:

When it comes to integrating Colombian accounting records with multinationals based outside of Colombia, CL&A sas are the pros in Colombia. Our accountants can produce reports in English, translate monthly bank statements, and instantly share invoices and receipts of payments online. Our aim is to provide complete transparency and accurate, up-to-date records to accountants and finance teams based in other countries. Our team has professionally certified and licensed Colombian attorneys and accountants on staff.

Colombian Taxes:

For most people, the first thing that comes to mind when you think of accountants is taxes. Whether you are an individual living in Colombia or an executive who is managing a multinational, you need to understand Colombian tax law to protect your interests. As recently as 2014, Colombia put into effect major changes in its tax law. These changes have a major effect on both Colombians and expats liviing in Colombia 183 days or more in a year. For tips on if you have to declare personal taxes in Colombia, click here.

NIFF / IFRS in Colombia

Compliance Our accounting services also offer full compliance with International Financial Reporting Standards (IFRS), also referred to as Normas Internacionales de Información Financiera (NIFF). Colombia Legal & Associates is certifed in this change. All companies in Colombia are required by law to have implemented this change by March 31, 2016. If you are using an accountant in Colombia ask if they are certified in this process.

Tax filings which are not done under new accounting standards during the second quarter will not have complied with the new law. Fines are very steep. Fines will be up to 200 minimum salaries.

That comes out to 138 million pesos for maximum fines. The small SAS companies with less than 10 employees are the last to have to comply with this law. Certified accountants in NIFF conversions must plan, convert and implement changes by March 31,2016.

Double Taxation

Is not permitted under Colombian law. Colombian tax deductions and calculations are very different from other countries. The debate on allowing US deductions for money earned in the USA is interpreted differently by various Colombian accounting and legal firms. Each person and company has very unique circumstances which should be studied by a professional before drawing any conclusions. In some situations the difference of percentages of taxes not paid in one country must be paid in another country.

If you are running a corporation in Colombia, you will be required to file tax reports on a monthly basis (once you create your first bill). From cash flow reports to monthly, quarterly, and annual reports you don’t want to fall behind. Payroll (Nomina) requires monthly reports issued to employees receiving benefits to stay compliant. Minimum filing requirements are quarterly for nonactive companies or companies which are still in a startup phase. Missing filings results in heavy fines from the DIAN.

In Colombia it is very important to pay employees with benefits because of the Work Ministry. This is true whether you hire a maid or someone referred to you by a friend who works on an hourly basis. A Colombian worker will expect you to pay their liquidation upon terminating the work relationship.

EXPAT Tips:

For the average foreigner living in Colombia it is extremely important to understand employee benefits.

Hiring Maids in Colombia

For daily or hourly service is much different than in countries like the United States. Save your money because when the employee quits working for you they will frequently ask for a liquidation payment. It takes 30 minutes to get an order from the Work Ministry to force you to pay liquidation.