The information contained in this disclaimer is intended for the education and general knowledge of our readers. It is not intended and should not be used as the sole source of information in the analysis and resolution of a legal problem and should not replace legal advice based on a specific analysis of the facts. In addition, the laws of each jurisdiction are different and constantly evolving. This information is not intended to create an attorney-client relationship and its receipt does not constitute an attorney-client relationship. If you have specific questions on a particular topic, please contact the authors of this publication, your Holland & Knight representative or other appropriate legal counsel. The above is included in the Christmas bonus in the public sector. Nevertheless, the service bonus, which is part of the employee`s salary, is subject to withholding tax for income from work. In order to calculate the withholding tax on this amount, it is necessary to know whether the employee belongs to the private or public sector. In addition, it must be examined whether the employee applies for a withholding tax under procedure 1 or 2. For example, if the service premium is paid on June 20, the withholding tax must be deducted on that day and this payment must not be cumulated with the payment of wages on June 30. I received the service bonus on July 12 and my July salary on August 2.
With the July payment came a withholding tax. Below it is stated that in addition, the premium and the salary of the discount must be made per retefuente in accordance with the tax law. It`s legal. I ask because I think payments or payments are made on different dates. It should be noted that the withholding tax established in this section also applies to payments or credits to the accounts of income from fees and remuneration for personal services obtained by persons who indicate that they have not hired or affiliated two (2) or more employees associated with the activity. 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). To illustrate the calculation method, assume that in June 2020, the sum of $5,000,000 will be received as a service reward. Since the payment of the premium and salary is made at different times, each payment is independent, so the deduction must be caused individually. Deductions such as: 1.
payment of housing interest and 2. the deduction for dependents, also go into the cleaning of the Retefuente base? The tax-exempt income is miscalculated, so the UVT does not match, with the value of the premium they give as an example, there is no withholding tax. They could make the correction or justification of the published procedure. What value should be discounted to a salary of $5,600,000 natural person Hello, where I can find the source table with procedure 1 for the year 2019. Thank you for those who are subject to the withholding tax procedure 1, if the payment of their legal premium does not currently exceed $ 4,509,000, this benefit would not result in withholding tax since 75% of this premium is less than 95 UVT. In any event, it should be ensured that, during the month in which the statutory premium is abolished, the limit of 40% of exempt income and deductions referred to in extraterrestrial Article 388 is respected. Although the statutory premium is cleaned up separately and is not added to the other work payments of the month, the tax deduction point should verify that the values of the exempt income and deductions it has deducted from the statutory service premium are in addition to the values of the tax-exempt income and deductions it has deducted from other work payments for the month. can be added.
In the end, do not exceed 40% of the total net income of the month (gross income minus untaxed income) that the employee receives. 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.
