Penalty reduction for the late filing of transfer pricing returns

The reduction of the penalty established in Section 640 of the Tax Code applies provided that two conditions are met


In its Revenue Ruling No. 0621 of March 23rd 2017, DIAN answered a question from a taxpayer who filed late the informative transfer pricing return, thereby liquidating the appropriate penalty. However, the taxpayer inquired on the possibility of applying the reduced penalty of Section 640 of the Tax Code, modified by article 282 of Law 1819 of 2016.

Article 282 of Law 1819 of 2016 allows the taxpayer to reduce its penalty to 50%, provided that: (i) it has not committed the same punishable conduct within two years prior to the date of the commission of the conduct and; (ii) the Administration has not notified the statement of objections, special assessment or filing requirement ruling.

Therefore, the taxpayer must verify if it complies with the previous requirements, and if applicable, it may reduce its penalty accordingly.