Originally from:
Doing Business in Colombia - 2nd Edition - Hardcover
Doing Business in Colombia - 2nd Edition - Electronic
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Chapter 7
Corporate and Individual Taxation
The Political Constitution of Colombia contemplates the duty and
obligation of all persons and citizens to contribute to the Financing of the
expenses and investment of the State within a Framework of justice and
equity (Article 95, numeral 9).
In order to comply with this duty, in times of peace, only the Congress,
departmental Assemblies and municipal and district councils may impose
fiscal or para-fiscal contributions and taxes. These legislative corporations
have the constitutional obligation to establish their basic and fundamental
elements such as the taxable base, rates, passive subjects, taxable events and
accrual.
I. ELEMENTS OF THE TAX OBLIGATIONS
In accordance with the Colombian legislation, the elements of tax
obligations are its subjects, taxable event, taxable base and applicable rate.
A. Active Subject
Active subject is the creditor in any tax obligation—the entity that may
enforce its fulfillment even under coercive measures. It also has the ability
to administer the tax collections for the common benefit.
The active subject by excellence is the State through its diverse entities
with fiscal faculties such as the Nation, its departments, districts or
municipalities.
B. Passive Subject
The passive subject is any individual or legal person who, in its
contributive capacity, bears the economic burden of tax payment.
Individuals—also denominated natural persons—or legal persons may
be passive subjects of a tax obligation. However, there are other entities
without legal personality that may by law become passive subjects to the
extent that they are within the taxable base.
C. Taxable Event
The taxable event indicates the contributive capacity of a legal or moral
person as established by law. Occurrence of the taxable event originates the
tax obligation. Various material or objective elements, as well as subjective,
temporal and special circumstances determine the actual occurrence of a
taxable event.
About the Firm:
Cavelier Abogados, a Colombian law firm established in 1953 that combines experience and innovation and stands out as a leading advisor in Latin America in several fields of the law. Using the most modern legal infrastructure and technology, the firm offers clients a strategic partnership for business development with legal services in Colombia and overseas countries. The strength of Cavelier Abogados lies in its Intellectual Property Law and Business Law areas, but the firm is also strong in Corporate Law, Financial Law, Foreign Investment Law, Tax Law and Mining and Hydrocarbons Law. Besides occupying prominent places in the top rankings of law publishers, the firm employs several university professors and authors of books on the practice areas of the firm. Cavelier Abogados also has a network of 469 correspondents in 143 countries. It was also one of the first Colombian law firms to have its own Code of Ethics, which contains higher standards of conduct compared to local legislation. The firm uses a multidisciplinary approach to find creative, prudent and value generating business solutions that optimize clients' return on investment while minimizing risks.
Contributors Include:
Natalia Tobón-Franco; lawyer from Universidad de los Andes (Bogota, Colombia); L.L.M. in Intellectual Property Law from Franklin Pierce Law Center (New Hampshire, U.S.A.); professor and author of several books and articles on Copyright Law, Freedom of Speech and Entertainment Law; associate at Cavelier Abogados.
Eduardo Varela-Pezzano; lawyer and specialist in Intellectual Property Law from Universidad del Rosario (Bogota, Colombia); L.L.M. candidate on Technology & Intellectual Property Law from the University of Liverpool (Liverpool, U.K.); Intellectual Property Law professor at Universidad del Rosario and author of several books and articles on Freedom of Speech, Patent, Trademark, Copyright and Entertainment Law; associate at Cavelier Abogados.
