DEPRECIATION AND TAXES IN COLOMBIA

For accounting purposes is considered to be the depreciation as a cost or expense

incurred by a company for the use of its fixed assets such as buildings, vehicles,
machinery, among others, and is used as a procedure to reduce the value of these
investments by charges that affect the income statement over time.
There are different methods to calculate the depreciation. However, the more used
in Colombia is the depreciation in line straight. The method used depends on the
strategies and policies of the company in terms of liquidity and profitability. A
depreciation accelerated, for example, involves high costs by depreciation in the
first years of life of the active affecting them utilities operational and accordingly the
profitability of the company. However, decreasing operational profits taxes
payments will be lower which will favor to the liquidity of the company.
A slow depreciation entails low charges to the State of gains or losses causing
some results operational much higher than in the method of depreciation
accelerated; in terms of profitability this strategy favors to the company but affects
to the liquidity when is increase those charges tax (taxes).
In finance, the depreciation plays an important role, especially in what refers to the
development of the net cash flows.
DIRECT TAXES
They are established by law levies that fall on the income, the income and wealth
of natural and/or legal persons, which consult the payment capacity of these. "Is
called direct because is applied and collect directly from the people that have the
income or the heritage taxed."
INDIRECT TAXES
They are charges that weigh on the production, the sale of goods, services,
imports and consumption. "These taxes do not consult the capacity of payment of
the taxpayer."
NATIONAL TAXES
They are tributes issued by the power executive and subject to consideration of the
National Congress for its approval, which is make effective starting from the
presidential sanction and its corresponding publication in the daily official. The
national order taxes are the following:

 VAT is a tax that is established on all sale of goods and services of the national
territory. Is generates by: the sales of merchandise that not have been excluded,
the services provided in the territory and the merchandise imported.
Income tax: the taxable basis for the natural persons are their income adjusted by
deductions and exemptions. The tax rates increased with the entry of the taxpayer
as a mechanism of equality. In companies, the rate tends to be flat, i.e. it is
independent of size or profitability.
National stamp tax is the tax generated in the notarization of the whole contract or
public instrument titles included values that are granted or accept subscribers
nationwide between individuals with the State or individuals whose act is greater
than 53.000.000 pesos and paid at the single rate of 1.5%
Taxpayers are natural or legal persons, they assimilated, and public entities except
not expressly involved as licensors, rotators, acceptors, issuers, or subscribers in
the documents.
The special contributions are those charges that sets the Government national to
cover needs specific in the budget of the nation.
DEPARTAMENTAL TAXES
Impuestos al consumo de cerveza, licores y cigarrillos y tabaco: Son bastante
elevados para desestimular el consumo lo que produce grandes problemas de
evasin.
Tax registration
gasoline surcharge
Vehicle Tax

MUNICIPAL TAXES
1. Tax on industry and Commerce: gravel all business, commercial or services
carried out in Bogota as occasional or permanent establishments or without them.
2. Unified property tax: is it taxed to the ownership or possession of real estate
located in the District Capital and that should be declared and paid by owners and
possessors of the land. By venue will understand: local, parking lots, lots,

apartments, House, etc. The tax will cause the 1 of January of each year until the
31 of December of the respective year.
3. Tax on motor vehicles: falls on vehicles registered in the Capital District and your
payment or period is annual, from January 1 to December 31 of each year.
4. Gasoline surcharge.
5. Tax of urban delineation: to issue licenses of construction, expansion,
modification, adaptation and repair of works and land of the district Capital.
6. Gaming and entertainment tax: the source of this tax consists of performing one
of the following events: shows betting on all kinds of allowed games, sweepstakes,
contests and similar public and selling by clubs system.