Leasing services are subject to withholding at the source with a rate ranging from 4 percent or 3.5 percent depending on the class of the leased asset.
A reader asks the following question: If a common regime company paid $ 650,000 of canon for six months from January 1 to a real estate company, what is the percentage of withholding at source, VAT and Retia that it must pay for the six months what are you cancelling?
The expert responds: the tax aspect of the leasing issue has several components and circumstances (simplified or common regime, natural or legal persons, etc.), although it all depends on the use of the leased property (housing, commercial, industry, etc.).
The subject of taxes is very dry and unstable, every year there is a tax reform that generates a multitude of criteria, situations and options. In this case, the lessee, being a legal entity and belonging to the common system, must pay the value of the lease, plus 7 percent of the VAT value, established in Law 788 of 2002, article 35.
However, the unified concept on sales tax No. 003 of 2002 of the DIAN establishes that properties subject to lease are not liable to VAT tax. It is worth clarifying that the concepts are not binding.
On the other hand, the expected withholding tax is 3.5 percent; Regarding VAT withholding, the tenant, as a legal entity, must retain the corresponding percentage and consign it to the DIAN, if duly authorized; otherwise, you must pay it to the landlord and he must consign it.
Withholding tax on lease
He will certify these values annually so that the lessor can deduct them in his income statement.
Ica and Retia in leases
It has a similar treatment with VAT and depends on specific conditions, therefore the consultant must go to a public accountant or tax lawyer, since according to the Tax Statute according to the classification of your company you have a code and in turn according to this you have a percentage to pay.
The respective consignment receipts in association with the lease will be the accounting supports for the accrual of operating expenses of your company.
Table of withholding at the source year 2017
|Concepts||UVT base||Base weights||Rates|
|Leasing of movable property||0||100%||4%|
|Leasing of real estate (declarants)||27||860,000||3.50%|
|Leasing of real estate (non-filers)||27||860,000||3.50%|
Question: In the case of a commercial property leased in the process of eviction through the courts, how does the settlement and payment of VAT on leases that is levied on commercial properties operate?
Answer: the term eviction is equivalent to notification of the decision to terminate the contract for any reason contemplated in the law or lease; in the case consulted, we understand that the property is in the judicial process of restitution for late payment of the rental fees and their increases.
We consider that if the landlord and the tenant are legal entities of the common system they are responsible for VAT; one to collect it and the other to pay it respectively.
On the other hand, whether it is directly you or through your attorney, you must request the court to deliver the monies consigned, unless the defendant has requested the retention of them for considering not owing them, in which case the landlord must wait until there is a sentence and a firm pronouncement in this regard.
When the court delivers the money to the landlord, and if VAT was included in the price, the landlord will proceed to carry out the necessary accounting records.