The Exógena Report (exogenous information) is a set of data on the operations carried out with customers or users. The report has to be submitted monthly or annually by natural persons or legal entities to the Colombian tax authority DIAN using a XML format. With Resolution 000068 of 2016, DIAN has provided rugelations on the transmission of the report, which relates to information as of the tax year 2017. But what happens to taxpayers who did not submit the report or submitted it incorrectly or incompletely?
Who has to submit the report?
• Legal persons, if they had a taxable income of over 100 million pesos in 2016
• Natural persons, if they had total receipts of more than 500 million pesos in 2016 and 2018 of more than 100 million pesos in the form of uncreated or capital assets
What changes have been made to the report?
Regarding the format in which information are transmitted to DIAN, the following changes are made, aiming to standardize audit management by DIAN and avoid duplicate information in various formats:
- Format 1001: When withholding taxes are reported, certain information should no longer be sent or need to be sent in a different format (2276). This refers to salary payments to employees and independent employees who provide personal services.
- Format 2276: The format should include only the following amounts: withholding tax on employee income, withholding tax in value added tax and the value of VAT, which has been reported as the highest cost
- Format 1007: New codes for the income earned in the tax year have been introduced and the column scheme has been deleted.
- Format 5253: In addition, all Colombian legal entities and permanent establishments that are subsidiaries abroad must report information about the actual beneficiaries (i.e. the natural persons who had effective control over the company)!
What sanctions can DIAN impose?
Up to three years after the report submission deadline, DIAN can sanction taxpayers who have not submitted the report. In this case, depending on the amount of missing data, penalties of up to 15,000 UVT ($ 514,050,000 or 514 Million Pesos) are possible. This penalty can be imposed even if the taxpayer hat submitted the report but too late or incorrectly. In general, taxpayers can submit the report until 2020, as the provisions refer to all tax years from 2017 onwards.
If companies submit their belated reports proactively and unsolicited by the DIAN, the penalty can be reduced by up to 20%. Further reductions of 50% to 75% are possible if the taxpayer fully complies with all content requirements of the report.
What should you watch out for when creating the report?
The prerequisite for creating the report is that the electronic signature mechanism is up-to-date and meets all technical requirements for the presentation of the information. If this is not the case, the creation and submission of the report may be delayed, which may result in penalties.
In any case, the report should definitely be submitted before the deadline, the DIAN system performs a preliminary review of the content and can issue error messages in case of doubt. In this case, you can make any necessary changes before the deadline, avoiding penalties or fines.
Most importantly, as a company, you must not underestimate the effort associated with the report! Even if the changes look subtle at first, depending on the amount of business activity, the required information can become so complex that there is a high risk of complications in getting it right.
These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!