Income Tax Return: These Are the Deductions and Tax Credits That Can Help Reduce the Amount Owed to DIAN

Tax attorney María Alejandra Pedraza was featured in an El Tiempo article discussing the deductions, exempt income categories and tax credits that individuals may use to optimize their income tax returns in Colombia. María Alejandra highlighted the importance of careful tax planning, including properly classifying income and evaluating benefits such as voluntary pension contributions, Savings Accounts for the Promotion of Construction (AFC), dependent deductions and other mechanisms permitted under Colombian legislation. She also emphasized that taxpayers should verify the applicable limits for these benefits and maintain adequate supporting documentation to avoid inconsistencies in the information audits conducted by Colombia's National Tax and Customs Directorate (DIAN).

"Legitimate tax planning consists of proactively taking advantage of the mechanisms expressly permitted by the Tax Code," she explained.

READ: Income Tax Return: These Are the Deductions and Tax Credits That Can Help Reduce the Amount Owed to DIAN (Subscription required)