This is a municipal tax. Cities that calculate ICA: Bogotá, Barranquilla, Pereira, and Cali.
Whomsoever directly or indirectly performs any industrial activity, trade or rendering of services is subject to taxation. In this tax the ICA code is used to determine the rate to be calculated.
Important: To perform this calculation you must:
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Fields and routines involved in calculation:
Customer and Supplier Register:
If this field is entered, the rate is /1000 (per thousand). Otherwise, it is /100 (percent %).
TIO x Tax Binding Register
Tax File
If the field Presents Table is equal to 2 – No, the tax rate is used to calculate the value. Otherwise, the rate is searched in Tax x Tax Zone Register.
Tax x Tax Zone Register
With tax (ICA) code, tax code of TIO operation, and Customer/Supplier State, the system makes a search in Tax x Tax Zone Register. Through the fields ICA Econ. Activity of Customer/Supplier Register and ICA Code, the rate is found. In the field Base Perc., the percentage of goods value is determined, which is the tax base.
Example:
Important: Rates are registered in the rate file (SFG). They must be created according to the CFO (of TIO) of the Provinces (the four provinces mentioned above) and of the Economic Activity (A1_CODICA). |
By entering an inflow or outflow invoice, in which TIO refers to ICA calculation, you must consider the activity rate in the calculation. These activities have their own codification, defined by Colombian government. They are called CIIU - Uniform International Industrial Code.
Previous registration for Tax Calculation
1. In Variable Taxes, select Add.
System displays add window.
2. Fill out data according to field help
3. This file has self-explanatory filling. However, check the most important information to register this tax:
Important information when the tax is created. | ||
Description | Content | Important Notes |
Registering a tax - ICA | ||
Tax Code | ICA | |
Description | Industry and Commerce Tax | |
Field in Tax Records | 3 | ICA is always saved in fields 3. Tax Base, Rate, and Tax Value. |
Inflow Calculation Formula | M100ICA | This function is analyzed with ICA calculation during inflow. It is run internally to generate inflow invoices either manually or by the purchase order. |
Outflow Calculation Formula | M46OICA | This function is analyzed with ICA calculation during outflow. It is run internally to generate outflow invoices either manually or by the sales order. |
Fee % | 11.04 | 11.04% Standard |
See Also