Deductions such as: 1. payment of housing interest and 2. the deduction for dependents, also go into the cleaning of the Retefuente base? For example, if the determined fixed percentage of withholding tax was 19%, the withholding tax of 19% is applied to the base, whether it is 50 uvt or 300 uvt, and the withholding tax base is composed of all labour payments, including the service premium. In this case, the withholding tax on the service premium must be paid independently. Article 385 ET provides that, in the case of the statutory minimum premium for services in the private sector or, at Christmas, for the public sector, the value used is that resulting from the period corresponding to that premium. This indicates that, in principle, the value to be retained does not continue debugging. On the other hand, the service premium is included in total labour payments without proceeding independently. Here it is allowed to find the fixed percentage of the withholding tax; Once found, the payment amount is applied directly, without resorting to the source table at source. `In respect of taxable payments other than redundancy payments, redundancy payments and the statutory minimum bonus for private sector services or the public sector Christmas bonus …` In accordance with Article 383 of the Tax Act (ET), withholding tax must be levied on payments made by natural or legal persons; de facto corporations; Organized communities and illiquid succession. With regard to natural persons, Decree 1625 of 2016 stipulates that they act as a withholding tax on employment income only if: it complies with the income and equity limits specified in Article 368-2 of the Tax Code. This is because the withholding tax of the service premium is independent and if, in the calculation, the basis of the withholding tax is lower than the minimum margin subject to withholding tax, no withholding tax is applied because its rate is zero, even if a payroll deduction was made during that month. A situation that does not arise in the application of procedure 2 since, once the retention percentage has been determined, this percentage is applied regardless of whether or not the taxable amount is below the minimum range. This means that the gross value of the 25 % premium can be deducted as income or exempt income (without 25 % exceeding 240 TUV in absolute terms; see Article 206(10) TE and the Dian concept 076176 October 2005).
If the final value obtained there exceeds 95 UVT (first place in the table of Article 383 of the ET; currently, they correspond to 3,383,000 USD), then the deductions would be made at source with the fields of the table of Article 383 of the ET (see our liquidator withholding tax with procedure 1 for those who receive income from work in 2020). If an employee`s statutory premium payment is less than $3,975,000, they cannot pay withholding tax, which would require a number of conditions to be met under withholding method 1 or 2. In this editorial, we explain the details of this benefit. The service bonus, which is not a monthly payment but a semi-annual payment, is treated somewhat differently from the salary as such at the time of application of the withholding tax. In order to calculate the withholding tax on the legal premium for services, which will be cancelled in December 2020, it is necessary to distinguish whether the employee belongs to the private sector or the public sector and whether it is also applied to procedure 1 or procedure 2 from withholding tax (see articles 1.2.4.1.3 and 1.2.4.1.4 of DUT 1625 of October 2016, amended by Decree 2250 of 29 December 2017). Recall that procedure 2 allows you to determine the fixed percentage of withholding tax, and once this percentage is found, the amount of the payment will be applied directly, without having to resort to the withholding tax table of Article 383 of the Tax Act. When cleaning up the withholding tax, they put $1,000,000 as tax-exempt income, and 25% of $5,000,000 equals $1250,000, for some reason or just accidentally? However, this does not affect withholding tax, since in the case of procedure 1, withholding tax is always paid separately, even if it is paid with salary. If the resulting value after discounting the exempt 25% is less than 95 uvt, the withholding tax is 0%, i.e. no withholding tax is levied.
Since the payment of the premium and salary is made at different times, each payment is independent, so the deduction must be caused individually.