Another tax question

80 million COP is equivalent to 19,072 USD.

That's enough to make it worthwhile

to consult one or two Colombia-based

accountants or tax attorneys to provide input

before making any sudden moves.

As opposed to asking the layperson Expats

who populate this forum .. and who would probably

just be adivinando.

cccmedia

@cccmedia That's true and on the list for the August trip.

The 80 million has nothing to do with you ....there isn't even an option to file a joint tax return in Colombia even if you are married.

Also moving money in and out of an account won't increase your tax liability. But may require you to have to file a tax return in Colombia.

My wife files taxes in Colombia because the value of her real property requires her to file....she pays no taxes because she has no income.

I have foreign income but very little of it ever hits my Colombia bank account so I never meet the income requirements to be required to file taxes in Colombia...so I don't.

20 plus years in Colombia and DIAN has never bothered me about or even asked if I have foreign income.

@Lpdiver

Article 8 of the Colombia tax statute indicates that spouses are responsible for reporting income and wealth separately, and therefore each spouse is responsible for the tax implications of their property and income without consideration for their association marital o patrimonial.

According to Gerencia.com,  in the case a property or possession is in the name of both spouses, it is recommended that each one declares the part or proportion that corresponds to them.

Analysis:

I assume your wife could tomorrow open an individual account in her name tomorrow at another bank and ask the pension administrator to deposit the pension into it; therefore, she controls it and the pension is considered hers. She is obligated to treat it as her own income for purposes of of any tax filing.

However, by opening a joint account,  your wife created marital property that is jointly owned by each partner.  Therefore, any interest earned on the account should be split between the two of you and reported separately. Also, for purposes of wealth tax considerations, the bank balance should be split equally between the two of you at the cutoff date.

https://estatuto.co/#:~:text=Art.%208.% … ndividual.

@cccmedia Would you be able to provide some recommendations for good tax accountants? I am in a remote area and would need someone I can work w/ virtually. Thank you!

The 80 million has nothing to do with you ....there isn't even an option to file a joint tax return in Colombia even if you are married.
Also moving money in and out of an account won't increase your tax liability. But may require you to have to file a tax return in Colombia.

My wife files taxes in Colombia because the value of her real property requires her to file....she pays no taxes because she has no income.
I have foreign income but very little of it ever hits my Colombia bank account so I never meet the income requirements to be required to file taxes in Colombia...so I don't.
20 plus years in Colombia and DIAN has never bothered me about or even asked if I have foreign income.
-@Tommy Lee70

Not only that Tommy, I know guys who deposit way more than 55 million in a year for years on end in their Colombian bank account and DIAN never bothers them.

I can believe the banks report the information to DIAN, but I doubt they do anything with it, espescially in the case of Expsts or foriegners in general.

Now really big amounts, you might get SIJIN/DIJIN after you for money laundering. But that could be explaiined away.

@cccmedia Would you be able to provide some recommendations for good tax accountants? I am in a remote area and would need someone I can work w/ virtually. -@klm267

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Dear Kim, the only time I consulted tax experts in Colombia was in 2018.  I was in Ipiales, where the accountant for a local cable TV station told me i had no tax liability for my 2016 to 2017 stay in Colombia. which had lasted more than a year.  She is not an English speaker and does not usually advise Expats.  I met her serendipitously through a third-party introduction.

For my IRS filings in the USA, I have long been using Tax Samaritan of North Las Vegas, whose accountants specialize in doing taxes for USA Expats.  That firm is  really sharp and they include limited audit protection in case the IRS ever decides to target you for an audit.  However, their fees have gone up quite a bit in recent years, partly I suspect because they are charging extra for the audit protection.

Resource.... www.taxsamaritan.com

cccmedia