In view of the regional elections on October 29, the Directorate of National Taxes and Customs (Dian) announced that he is now working as a member of the National Commission for the Coordination and Monitoring of Electoral Processes.

This Commission, which is chaired by the Ministry of the Interior, seeks to avoid risks and guarantee the normal development of the elections through the National Electoral Guarantees Plan.

(You can also read: Be careful! The deadline to request the update of the Sisbén IV survey is extended)

With the objective of guiding the different actors in the management of their tax obligations and preventing the use of public resources with electoral fines and/or prohibited campaign financing, The entity issued a document with key information on expense supports (invoices, equivalent documents), tax treatment of donations to political parties and formal obligations, among others.

First of all, it is important to mention that the political parties or movements advanced by the National Electoral Council are non-taxpaying reporting entities, as established in article 23 of the Tax Statute.

Do political parties or movements approved by the National Electoral Council have to submit a declaration of income and assets?

Yeah. The presentation of the declaration of income and patrimony is exclusive of legal entities that do not pay income and complementary taxes, with the exception of those expressly indicated by law. Article 23 of the Tax Statute classifies them as non-reporting taxpayers.

Donation Information:

They must report the donations received as follows:
1. Certified donation form.
2. Amount of the certified donation.
3. Type of donor person.
4. Type of donor document.
5. Donor identification number.
6. Names and surnames or business name of the donor

Modalities of donations:

The donations that give the right to deduction must take the following modalities:
1. When money is made, payment must be made by check, credit card or through a financial intermediary.
2. When other assets are donated, their value will be estimated at the acquisition cost less accumulated depreciation up to that same date.

Are the political parties or movements advanced by the National Electoral Council responsible for the sales tax?

In the event that any of the non-taxpaying entities of the income tax make sales or provide taxed services or carry out any activity that is considered a taxable event, as established in article 420 of the Tax Code, automatically becomes responsible for sales tax and must comply with all obligations derived from this tax.

Should political parties or movements be withheld at source as income tax?

Being classified as non-taxpayers of income tax, they are not subject to withholding on this tax.

Are political parties or movements withholding agents for income tax?

Yes, when they make payments to third parties for which withholding is applicable, they must make the withholding at source and comply with the obligations established for the withholding agents.

Here we show you the complete Dian guide: