The importance of tax accounting for your business

Being a former spanish colony, the colombian State has inherited a wide quantity of taxes which dependence relies primarily on customs. Taking this into account, entities such as the Congreso de la República, as well as the Asamblea Departamental and the Concejo Municipal, not only determines but also checks on the fulfillment of payments according to fixed rates.

Based on the State’s watch over payment’s execution (according to due dates and tariffs), all companies must keep themselves completely up to date in a certifiable way.

In order of fulfilling all legal obligations, plus being aware of any update on its subjections and industry requirements, the company’s processes get complex and delayed, having a negative impact on the brand’s production and its economy over all. This is why all smart business owners seek for the support of a firm which offers tax accounting services.

These services are based on their deep and updated knowledge on the tax obligations matters (not mentioning their mastery and experience about applied taxes for companies and individuals). This means that, any person who needs to solve doubts and perform timely payments over taxes, can get in contact with specialized accounting firms, which – among many other services – will help them settle prompt payments under all the law conditions.

Do you need an Accountant in Colombia?

Thanks to the team’s mastery and experience on tax accounting services, those firms have also got practical knowledge, which will allow any company to optimize their resources, such as:

• Perform all responsibilities according to the industry specifications.
• Execute timely payments due to acquire financial benefits as, for example, discounts.
• Implement strategic activities inside the company to reduce tributary obligations.
• Carry out specific quantities to avoid any overdraft on the payments.

So, if your company receives the tax accounting services support from a specialized firm (besides optimizing your resources in order to get an intelligent fulfillment), your company will keep every requirement completely up to date. Besides, you and your team will be able to be focused on those specific tasks which require punctual attention, leading your company to its overall development.

This means, now that an expert is in charge of fulfilling the exact payments on taxes and tariffs, you won’t be worried with all those tax responsibilities, which are:

• Withholding tax: A mechanism used to accelerate the collection of taxes from the moment they are accrued.
• Wealth tax: An obligatory payment of the 0.3% for people who own more than one million dollars on their total assets.
• Income tax: A must-pay percentage quantity according to the economic amount that a company (or a person) accrues. In the company `s case, it is the 33% while, for individuals, it can vary between 0% and 33% according to their income.
• Financial transaction tax: It consists of a 0.4% tax on all financial transactions, including ATM withdrawals, promissory notes, bank transfers or online banking, among many others.
• VAT: A 19% tax which is applied on a large number of products and services with few exceptions, such as public transportation, water supply and hydrocarbons transport.
• Stamp duty: A tax for the issuance of public documents and the validity of private documents, such as the creation of a contract or the modification of such.

In addition to the aforementioned taxes, we can also find local taxes, such as the tax on motor vehicles and the property tax.

You may be interested: Should your company work along with a tax firm?

So, to avoid that you or your company fall into legal complications due to poor fulfillment with tax responsibilities, it is always advisable to count with the support of specialized firms that provides tax accounting services.