Ending your tax residency in Colombia is a significant step that requires thorough understanding and compliance with the local tax laws. This guide will walk you through the necessary steps to ensure a smooth transition out of your tax obligations in Colombia.
Step 1: Establish a New Tax Residency
Before ceasing your tax residency in Colombia, you need to establish a new tax residency in another country. This involves meeting the tax residency requirements of the new country, which typically includes spending a certain number of days in that country and having a permanent home there.
Step 2: Notify the Colombian Tax Authorities
You must formally notify the Colombian tax authorities (DIAN) of your intention to cease your tax residency. This is done by submitting a written request to DIAN, declaring your new tax residency status and providing evidence of your new residence abroad.
Step 3: File Your Final Tax Return
File your final tax return in Colombia, covering the period up to the date you cease to be a tax resident. Ensure that all income earned up to that date is reported and that all tax obligations are settled.
Step 4: Cancel Your Colombian Tax ID (RUT)
Once your final tax return is filed and accepted, you can proceed to cancel your Colombian Tax Identification Number (RUT). This is done by submitting a request to DIAN along with the necessary documentation to prove that you have ceased to be a tax resident.
Step 5: Close Colombian Bank Accounts and Financial Interests
Ensure that all your Colombian bank accounts and other financial interests in Colombia are closed or transferred. This will help to avoid any future tax implications or obligations in Colombia.
Legal References
- Article 10 of the Colombian Tax Code (Establishment of Tax Residency)
- Article 594-1 of the Colombian Tax Code (Filing Requirements for Final Tax Return)
- DIAN Resolution 000114 (Procedures for Cancelling RUT)
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