Application of tax rules to trust agreements

DIAN Revenue Ruling No. 1990 of February 10th, 2016


The Colombian Tax Authority (DIAN) reminds the petitioner that it is not competent to rule on matters concerning with local or municipal taxes. However, it refers to the application of income tax rules to trust contracts.

DIAN states that under Section 102 of the Colombian Tax Code, the Trust Company is responsible for the compliance, on behalf of the different trust it manages, not only with performing the withholding at the moment of payment or account credit, but with all other formal obligations such as filing returns, making the payment to the Tax Administration, issuing certificates and submitting the returns filed.

Consequently, it upholds those conclusions that had been reiterated in its Revenue Ruling No. 048995 of August 6th 2013, and other previous rulings (R.R.) such as R.R. No. 68177 of December 30th 2014, R.R. No. 071401 of November 7th 2013, and R.R. No. 51897 of the 31st of May, 2000.