Know what you need to do to be excluded from the Simple Regime

But what happens if in the previous taxable year, a person obtained income below 100,000 UVT, enrolled in the Simple Regime, and in the current taxable year obtains income higher than the established limit?

Know below, what this person should know in the factual assumption raised:

Following Section 905 of the Tax Statute ("E.T.") may be taxable persons of the Unified Tax under the Simple Tax Regime ("RST") legal or natural persons who, among other conditions, have obtained ordinary or extraordinary gross income in the previous year less than 100,000 UVT.

Although the rule in question does not establish a ground for exclusion associated with the income ceiling in the year (except for legal entities that are constituted within it), the DIAN has interpreted that one is configured when in the period income greater than 100,000 UVT is generated. Consequently, according to the position of the Entity, the procedure provided for in the DUT must be applied for the fulfillment of the tax obligations of the ordinary regime, which includes[1]:

1. Request the exclusion of the Simple Regime within the month following the fact that generates the update of the RUT through an appointment with the DIAN.
2. Attach a letter, which is understood to be presented under the gravity of the oath, indicating the requirement or condition that you fail to comply with to belong to the Simple Regime.
3. Submit the VAT returns, and other taxes of the national order replaced and integrated into the Simple Regime for which it is responsible within the following month (this fact does not produce sanction).
4. Regarding tax obligations for taxable periods not concluded at the time of exclusion from the Simple Regime, they must be fulfilled within the deadlines provided by the National Government, following the date of update of the RUT, under the corresponding periodicity.
5. The advances paid may be credited in the respective declarations of Income Tax, Consumption Tax, VAT, which are related to the taxable periods subject to declaration.

Once the quality of RST is lost, the payments made to the taxpayer will be subject to withholdings tax, the same will be a withholding agent and must comply with its obligations within the Ordinary Regime. Likewise, no contingency will fall concerning the periods in which you did not submit the tax returns of the ordinary regime while you belonged to the RST.

[1] See Sections 1.5.8.4.4, 1.6.1.2.10, 1.5.8.2.2., 1.5.8.2.3., 1.5.8.2.4.