Job Discussion Forums

[Utica2008]

Hello,

I recently got my work visa for Colombia and my boss is now taking 10% of my earnings for "tax". I am very sceptical if I should actually be paying this and it is possible that the boss is just taking it for himself/the institute. He also tried to tax myself and other teachers before we had our visas and this is why I am sceptical. We were still working illegally but he claimed he had a letter from the government saying that we could work and be taxed. This obviously wasn't true.

Sometimes we might only earn about one million pesos a month but regardless we are taxed 10% on every hour. A friend has told me that she doesn't think we should be paying this tax.

Any thoughts or does anyone know where I can find legit info on this? My Spanish isn't great and I can't exactly talk to the boss either.

Thanks

[windowlicker]

Info here:

http://forums.eslcafe.com/job/viewtopic.php?t=94297&highlight=prestacion++servicios

and here:

http://forums.eslcafe.com/job/viewtopic.php?t=85520&highlight=prestacion++servicios

Essentially, as long as you're on a "Prestaci�n de Servicios" contract (and it sounds like you are), then you should be seeing somewhere around 10% deductions from your paycheck, which would include your health insurance (EPS) payment. If you're not on "Prestaci�n de Servicios" or if you haven't been given health insurance, than something is fishy.

Regarding the tax on illegally earned income - I doubt this too, but it happened to me my first month or two in Colombia. In the end, it amounted to very little money, and the institute paid for my visa so I didn't put up much of a fuss about it.

[windowlicker]

But to clarify, I suppose one important point to make is that you should be paying very little - if any - "tax."

8% of your salary should be deducted for healthcare (rules may actually have changed...this may now be 4% for healthcare and 4% for pension...not sure, but in any case it still works out to 8%).

There may be another small deduction that works out to about 1% - I don't know exactly what this is for. I've worked in three places in Colombia, and it has been deducted for two of my employers, though called slightly different things on the pay stub. My first employer told me this was a local tax for Bogot�, which would make sense - the two employers that have taken it out were Bogot� employers, while the third was on the coast.