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DIAN REVENUE RULING

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DIAN REVENUE RULING

Definition of the tax residency for the application of the Tax Treaty with Spain

By means of Revenue Ruling No. 0225 of March 1st 2018, the Colombian Tax Authority explained how residency conflicts should be solved

 

In response to a question by a taxpayer on how to solve a possible residency conflict of an individual that is a tax resident both in Colombia and Spain, the Colombian Tax Authority explained the test that should be carried out in accordance with article 2 of the Tax Treaty:

  1. The first criterion is the permanent living place.
  1. In case of having a living place in Colombia and Spain, the individual will be resident of the State in which his or her center of vital interest is located.
  1. In case of having a center of vital interest in both countries, the individual will be resident in the country in which he or she lives habitually.
  1. Finally, if the individual lives habitually in both countries, he or she will be resident in the Country from which he or she is citizen.