Retención en la Fuente Sobre Ingresos Laborales

Abstract

Withholding tax on labor income is the advance collection of income tax. It is a percentage withheld from the income and labor payments received by any employee under a labor, legal, or regulatory relationship. This process can be carried out under two procedures. The employer must apply the withholding tax if the income or salaries received by the worker meet the base for its application. The aforementioned is contemplated in Article 383 of the Tax Statute. Ignorance of the regulations does not exempt companies or contractors from infractions, as they, whether public or private, must have trained personnel in this area. The company or the worker must know which method best suits their needs (The Congress of Colombia, 2022). The employer must comply with the obligation to pay the withholding and issue the income and withholding certificate to the worker. The Ministry of Finance is responsible for issuing the regulatory decree every year, where the deadlines for fulfilling these tax obligations are promulgated (Colombia, 2023).