Colombia – New Electronic Payroll Reporting

The Colombian National Tax and Customs Directorate (DIAN) recently launched Resolution 000013, outlining the details of changes to the method of reporting income tax.

Companies must now adapt their systems to begin issuing payroll filings electronically – as of publication, the date has yet to be confirmed. Implementation will take place in phases, with each company’s compliance date determined by the number of employees on their payroll.

The electronic payroll process includes 2 primary documents.

#1 The electronic payslip, called the electronic payroll support document.  It reflects the remuneration received by an individual according to their employment relationship with a company.

It must include:

• An employee’s personal data and company information
• The unique ID code (CUNE) of the electronic payroll support document
• A number that corresponds to the internal consecutive numbering system
• The content and value of items corresponding to the payroll accrued amount
• The content and value of the items corresponding to payroll deductions
• The total difference- i.e., the difference between the total accrued value and the total deducted value
• The payment method
• The date and time of creation
• An electronic signature of the company
• The ID of the technology provider

#2 The electronic payroll support document adjustment note, issued to rectify or modify the electronic payroll in case of error.

It must:

• Be clearly labeled an electronic payroll support document adjustment note
• Include a number that corresponds to the internal consecutive numbering system
• Include the number and date of creation of the electronic payroll support document CUNE to which the adjustment note refers
• Include the unique ID code (CUNE) of the electronic payroll support document
• List the type of adjustment document, where applicable
• Include the date and time of creation
• Include the date and time of validation of the payroll support document being canceled
• Include the employee’s personal data and company information
• Include the electronic signature of the company.

Both documents must be signed electronically by the issuing company and submitted to the DIAN for validation

Who must submit the electronic payroll to DIAN?

Income taxpayers who are employers or make payments due to legal or regulatory relationships or make pension payments.

When should you submit the electronic payroll to DIAN?

The electronic payroll supporting document must be issued and sent to DIAN monthly, 10 days after its creation or issuance.  Employers will submit the report monthly regardless of how often they pay their employees.

What companies must issue an electronic payroll?

All companies subject to income tax and VAT that make payments to persons according to their employment or legal relationship

Implementation calendar:

Resolution 37 extended the calendar, giving organizations more time to prepare for the implementation.

Source: L&E Global

FAQ

Can companies use the provider’s digital signature to send electronic payroll/invoice?

In accordance with current regulations and the signature policy established by DIAN, a delegated signature can be handled, as long as it is a digital certificate issued by a digital certification entity authorized by the National Accreditation Body of Colombia (ONAC).

Should I send this graphic representation to my employees?

The regulation mentions this as optional: “if required, they may issue graphic representations in digital or printed format, and must contain the information related in articles 5 or 17 and include the quick response code, QR code (through which you can access the consultation of documents validated)”.

 If my payroll frequency is semi-monthly or weekly, should I transmit my electronic payroll to DIAN with this same frequency? 

According to article 3, they must be generated for tax purposes on a monthly basis, regardless of payroll frequency. Companies should accumulate the information on payroll accrued values, deducted payroll values, and the total difference value for the month.

The 10-day deadline for submitting electronic payroll to DIAN: are these calendar or business days?

Although this is not specified, it always traditionally been calendar days.

If my go-live date is September 1, should I issue the electronic payroll to DIAN for the month of September?

The DIAN allows reporting those events that arise within the payment period and that affect the payroll payments values and deducted values.

Should I adjust my internal processes? Is the implementation of this new document complex?

There are both technical and functional processes to adjust. However, with the proper support, it can still be an efficient process.

What is the DIAN goal with the electronic payroll?

DIAN has been promoting digital transformation in the country since the beginning of electronic invoicing, and it is evident that DIAN wants to achieve efficiency in control and inspection.