Withholding
In Colombia, it is possible to calculate tax (income tax) withholding in two different ways:
| • | Procedure 1: Use the UVT table and the income tax table. (Default) |
| • | Procedure 2 A fixed percentage is applied on the saved base. |
To calculate using procedure 2, a second field must be present where you enter the percentage to apply in the calculation. Usually it is the employer who determines the withholding format. However, if the employee requests for it to be done differently, he/she will be responsible for the information.
The employee may hand in up to three certificates with values to be deducted from the base tax withholding:
| • | Housing |
| • | Health |
| • | Education |
There is a ceiling to the sum of values that cam be deducted from the base.
These deductions must be entered in the fixed entries routine and the calculation must treat them to be deducted from the base
See also
| • | Duration |
| • | Salaries |