By Which Rules Are Issued In Customs Sanitation And Other Provisions On Tax Matters

Original Language Title: Por el cual se expiden normas en materia de saneamiento aduanero y se dictan otras disposiciones en materia tributaria

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LAW 174
1994 (December 22)
Official Gazette No. 41,643, of December 22, 1994
By establishing rules are issued in customs sanitation and other provisions in tax matters.
ARTICLE 1o. SANITATION ADUANERO. . Effective Jurisprudence

Previous legislation Article 2.
. COST OF INVENTORIES. Hereby added to Article 62 of the Tax Code with the following paragraph:
"Paragraph For purposes of determining the income tax, taxpayers who in accordance with Article 596 of this Statute are required to submit their tax declaration signed. by Auditor or Certified Public Accountant, shall establish the cost of the disposal of movable assets by the system of permanent inventories or continuous, or any other system of recognized technical value in accounting practices authorized by the Tax and Customs national ".

ARTICLE 3. CLEARING THE PROVISION OR LIFO LIFO. Article 65 of the Tax Code shall read as follows:
"Article 65. Gradual clearing the LIFO or LIFO provision for tax purposes, taxpayers Income Tax and Complementary having differences between the declared inventory valued end with. based on the use of modalities LIFO or LIFO (last in, first out) and the final inventory valued by other systems for its internal purposes must remove the balance of these, existing differences as of December 31, 1994, in its income statements from the fiscal year 1995, no later than the fiscal year 1999, using at least 20% annual rate.
the values ​​obtained based on the parameters set forth herein, have the effect of an increase in the value of inventories of the respective period and an income tax restatement.
PARÁGRAFO. the method used for the valuation of inventories (First in, First out, Latest Posts, Latest outputs, or average, or specific identification) it should be applied in accounting evenly throughout the fiscal year and must be reflected in any time period in determining the inventory and cost of sales. The value of detailed inventories at year-end inventory, must match the total recorded in the accounting records and the statement of income.
The change in the valuation method must be previously notified to the Administrator of National Tax and Customs appropriate, in accordance with the procedure specified in the regulations. "

ARTICLE 4. APPRAISAL AS FINANCIAL COST. Article 72 of the tax Code shall read as follows:
"Article 72. Assessment as fiscal cost. The appraisal declared for the purposes of Unified Property Tax in development of the provisions of Articles 13 and 14 of Law No. 44 of 1990 and 155 of Decree 1421 of 1993, and the appraisals formed or updated by the cadastral authorities, under the terms the 5th article. Act 14 of 1983, they may be taken as a tax cost to the determination of income or occasional earnings to occur in the sale of properties which constitute fixed assets for the taxpayer. For these purposes, the self-appraisal or appraisal acceptable as fiscal cost, will be listed in the Unified Property Tax declaration and / or income statement, as applicable, for the previous year to the alienation. For this purpose the corrections or additions to tax returns or not appraisals which formed the 7th article shall not be considered. Law 14 of 1983 "...

Jurisprudence ARTICLE 5. Effective accounting and tax purposes COMPREHENSIVE SYSTEM SETTINGS The second paragraph of Article 330 of the Tax Code shall read as follows:
" For purposes commercial accounting system adjustments for inflation, according to the provisions of the principles or standards generally accepted in Colombia, and the principles or accounting standards issued for their monitored by the respective bodies of control will be used, according to the legal nature and the activities required to keep accounting "people.

Effective Decisions ARTICLE 6o. UNIFICATION oF ADJUSTMENT INDICES. hereby added to Article 331 of the Tax Code with the following final paragraph:
"in the determination of income tax rates the same and the same classifications of inflation adjustments recorded in the accounts for the corresponding items will be used".

ARTICLE 7. NOTICE TO NO adjustments. Article 341 of the Tax Code shall read as follows:.
"Article 341. Notification to not make the adjustment Taxpayers of income tax and complementary, must notify the respective tax administrator, its decision not to make the adjustment to referred to in this title, provided that they prove that the market value of the asset is at least less than 30% of the cost that would result if the respective adjustment is applied. this notification must be made at least four months prior to the date the deadline to declare.
PARÁGRAFO. for purposes of the provisions of this article shall be no notification to not make the adjustment, in the case of non-monetary assets whose fiscal cost to December of the previous fiscal year 31 the adjustment is equal to or less than fifty million pesos ($ 50 million), provided that the taxpayer keep in their accounts certified by an expert on the market value of the asset ".

Article 8. BASES FOR TAX ADJUSTMENTS. Article 353 of the Tax Code shall read as follows:
"Article 353. Basis for tax adjustments Fiscal adjustments on non-monetary assets, non-monetary liabilities and equity, should be made based on the tax cost of the assets. and liabilities, determined in accordance with chapter II of title I and chapters I and III of title II of book I of this Statute, and Article 65 of Law 75 of 1986. the same base should be used to declare the asset value of the assets and the calculation of the theoretical deduction. to compute the value of this deduction inventories are not taken into account.
When a non-cash asset has not been adjusted for inflation in the exercise, its net asset value shall be excluded for purposes of adjusting the liquid assets ".

Article 9. WITHHOLDING. Modifícanse Articles 401, 366-1 and 392 of the Tax Code as follows:
"a) Article 401 is added with the final paragraph:
Without prejudice to the provisions of Article 398 of the Tax Code, the rate withholding tax for payments or credits note that this article, received by non forced taxpayers to file income tax concerns will be 3%. in the other items listed in the first paragraph of this article, and in cases of acquisition of goods or agricultural or livestock products without industrial processing, purchase of parchment coffee type federation, payments to wholesale distributors or retailers of petroleum fuels, and the acquisition of real estate or vehicles or construction contracts , urbanization and, in general, making building material work, the provisions governing the corresponding deductions will be applied ".
"B) Article 366-1 of the Tax Code is added with the following paragraph, as second paragraph:
The rate of withholding tax for foreign exchange earnings from abroad, constitute income or gain occasionally, they receive non required to submit declarations of income and other contributors, is ten percent (10%), regardless of the nature of the beneficiaries of such income. the rate of withholding tax for forced taxpayers to declare it will be the appointed by the National Government. "
"C) Article 392 of the Tax Code is added to the following final paragraph:
The rate of withholding tax for fees and commissions earned by taxpayers not required to file income tax and complementary, is ten percent (10%) of the value of the payment or credit account. the same rate will apply to payments or credits to account of consultant contracts and fee contracts delegated administration. the retention rate the source for taxpayers required to declare will be the appointed by the National Government. "

ARTICLE 10. REQUIREMENTS OF BILLS. Hereby added the clause 2o. Article 617 of the Tax Code with the following paragraph:
"When the taxpayer use a computer billing system or registers, with the impression made by such means that the requirements are understood print-billing system should. consecutively numbered bills and must provide the means necessary for verification and auditing ".

ARTICLE 11. CONTROL STANDARDS. A special contributions referred to in Articles 11, 12 and 15 of the 6th Act. 1992 apply to them as appropriate, the rules governing the determination processes, discussion, collection and penalties under the Tax Code and its control will be in charge of the Special Administrative Unit of the National Taxes and Customs.

ARTICLE 12 REFERRAL OF DEBTS. Hereby added to Article 820 of the Tax Code with the following paragraph:
"The Director of National Tax and Customs is empowered to remove records and taxpayer current accounts, debts to its charge for taxes administered by the UAE Directorate of National Taxes and Customs, penalties, interest and surcharges on them, up to a limit of three hundred thousand pesos ($ 300,000) for each debt (base value 1994), provided they have at least three years overdue. the limits for annual cancellations they will be marked by general resolutions. "

ARTICLE 13. Repealed the second paragraph of Article 88 of Law 101 of 1993

ARTICLE 14. NET INCOME TAX. It is the result of applying the respective rates to taxable income or Net income and subtract tax discounts.

ARTICLE 15. VAT ON funeral services. Article 476 is hereby added Tax Code with the following paragraph:
"Funeral services, cremation, burial and exhumation, rental and maintenance of graves and mausoleums, funeral notices newspaper hired through funeral homes and generally all the same inherent "activities.

ARTICLE 16. TAX AMNESTY. Taxpayers of income tax and complementary domiciled in the areas of special customs procedure before the effective date of this law, which had omitted movable assets represented in goods, in their income statements corresponding to the fiscal years 1993 and above, they may be included in the income statement of 1994, without having to investigations, penalties, injunctions, liquidations or revisions concerning the assets of amnesty or income that gave rise to such goods.
To be eligible for this benefit fulfilling the following conditions are required:
a) That the income statement of 1994 is presented timely and that it includes the taxpayer a higher taxable income reported in its statement of fiscal year 1993. the benefit here also provided blanket taxpayers from the areas referred submit declaration of income and complementary for the first time, in which case it does not require compliance with this requirement;
B) Within the term for filing an income statement for the fiscal year 1994 to a supplementary equivalent to three percent (3%) of the value of inventories subject to income tax amnesty is paid.
As regards national societies, the greatest value of assets caused by the amnesty referred to in this article is considered surplus retained earnings from previous year to 1994, does not constitute income or occasional earnings for its members or shareholders at the time of distribution.
PARÁGRAFO. The amnesty referred to in this article may not be grounds for annulment, revocation or invalidity of processes for which special requirement has been notified, summons or statement of objections prior to the publication of this Law.

ARTICLE 17. EFFECTIVE DATE. This Law in force since its publication and repeals all provisions that are contrary.
The President of the honorable Senate of the Republic (E.)
Fabio Valencia Cossio.
The Secretary General of the honorable Senate,
The President of the honorable House of Representatives
The Secretary General of the honorable House of Representatives, DIEGO VIVAS
Republic of Colombia - National Government.
Published and execute.
Given in Bogota, DC, 22 December 1994.

Ernesto Samper Pizano Minister of Finance and Public Credit, WILLIAM PERRY RUBIO

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