Taxes - February 2016

I. TAX AUTHORITIES RULINGS

1.  Ruling 0078 of 2016: Application of the 25% labor income exemption on the computation of the minimum withholding tax on wages

In decision C-492 2015, the Constitutional Court held that the 25% labor income exemption established by Article 206 (10) of the Tax Code also applies to the computation of the income tax under the alternate, so-called IMAN and IMAS methods.

In this context, DIAN was consulted about the scope of this decision of the Constitutional Court of Colombia, in regard to the following:

(i) What is the scope of the expression "first phrase" contained in Decision C-492 of 2015?

(ii) Does the limit of 240 monthly UVTs set by Article 206 (10) of the Tax Code applies to the computation of the 25% exemption under the IMAN and IMAS methods?