Understanding Tax & Accounting Terms in Colombia
In Colombia, accounting and tax-related services are known as asesorías contables y tributarias. To effectively navigate this field, it’s crucial to understand specific Spanish terms commonly used in Colombian accounting and taxation. This guide offers clear definitions and explanations of these essential terms, helping your business stay informed and compliant with local regulations.
Cámara de Comercio (Chamber of Commerce)
Institution that fulfills delegated public functions by managing the commercial registry and certifying the legal existence of registered businesses and merchants.
Declaración de Renta
Annual tax return that individuals and companies must submit to DIAN to report their income, deductions, and calculate the tax to be paid.
DIAN (Dirección de Impuestos y Aduanas Nacionales)
The National Directorate of Taxes and Customs is the government entity responsible for tax and customs administration in Colombia.
Documento Soporte
Official electronic document reported to DIAN that supports certain purchases of goods or services.
ERI (Estado de Resultados Integral)
Financial report that shows a company's income, expenses, and profits over a specific period (Income Statement).
ESF (Estado de Situación Financiera)
Also known as the Balance Sheet, it shows a company's assets, liabilities, and equity at a specific date.
Factura Electrónica
Digital invoice that supports a transaction of goods or services, mandatory for businesses in Colombia.
Habilitación
Process by which companies or individuals register with DIAN as issuers of electronic documents.
ICA
A municipal tax that may apply when a company carries out industrial, commercial, or service activities in a municipality.
IFRS (International Financial Reporting Standards)
International standards for financial reporting that establish how financial statements should be prepared and presented globally.
Información Exógena
Data that companies must report to DIAN about their economic transactions with third parties, to aid in tax control.
IVA (Impuesto al Valor Agregado)
VAT (Value-added tax) applied to the consumption of goods and services. Businesses charge it to customers and then report and pay it to the government.
Matrícula Mercantil
The commercial registration that companies, merchants, and business establishments must complete with the Chamber of Commerce.
NIIF (Normas Internacionales de Información Financiera)
Set of international accounting standards that Colombia has adopted for the preparation of financial statements.
NIT (Número de Identificación Tributaria)
The Colombian tax identification number assigned by DIAN to identify taxpayers registered in the RUT.
Nómina
List of a company's employees and the details of the payments they receive, including salaries, bonuses, and deductions.
Nómina Electrónica
The electronic payroll support document reported to DIAN for payroll-related costs and deductions.
PILA / Planilla
The system and payment form used to calculate and pay social security and payroll-related contributions in Colombia.
POS (Factura POS)
Type of invoice issued at points of sale like supermarkets, different from an electronic invoice. It is a purchase receipt printed at the time of the transaction.
Retención en la Fuente
System where a portion of the tax is directly withheld from certain payments, such as salaries or income from services, and remitted to the government.
RUB (Registro Único de Beneficiarios Finales)
The Beneficial Owner Registry where companies report information about their final beneficial owners to DIAN.
RUT (Registro Único Tributario)
Document that identifies individuals and companies as taxpayers in Colombia. It is necessary to conduct any formal economic activity in the country.
