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DIAN REVENUE RULING

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DIAN REVENUE RULING

Tax treatment of fees paid to entities that act as managers of Collective Investment Funds

DIAN addressed the tax treatment of the fees charged by the entity that acts as the manager of the Collective Investment Fund, regarding the investors that are not pension funds managers

  

By means of Revenue Ruling No. 007935 of 2018, DIAN concluded that pursuant article 476 (3) of the Colombian Tax Code, there are two different VAT exemption treatments applicable for Collective Investment Funds.

On the one hand, there is a VAT exemption for fees paid to the managers of the Collective Investment Funds, regardless if the fees are paid by an investor that is a pension fund manager or any other type of investor.

On the other hand, pursuant to the same article 476 (3) of the Tax Code, there is an exemption for fees charged by the fiduciary financial entities which are in charge of  for the managing of common funds.