Differences in the Criteria for Determining ReteICA Agents

Tax attorney Alberto Posada wrote a column for Asuntos Legales analyzing the differences in criteria for determining ReteICA agents in Colombia. The article highlights the complexity and variability of industry and commerce tax (ICA) obligations among different municipalities and districts in the country. Mr. Posada points out the problems that arise when territorial tax authorities require ICA withholding from payers who are not taxpayers in the respective jurisdiction, questioning the administrative burden and costs this creates for businesses, especially small and medium-sized enterprises. He also raises questions about the scope of the notion of "connection" with a municipality to be considered a withholding agent and the need to establish clear limits in compliance with the constitutional principles of equity and tax justice.

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