Special tax basis in the provision of services

According to Article 447 of the Colombian Tax Code, tax basis in the provision of services will be in every operation, the value of the remuneration that the person in charge of the provision of services receives, independently of its denomination


Through Revenue Ruling No. 19321 of July 21st of 2016, the Colombian Tax Authority –DIAN-, determined the way the Office of the Ombudsman had to proceed in the payment of indemnities to beneficiaries and the payment of lawyer fees in legal processes against the Nation, and determined if the office had to serve as withholding agent.

For the payment of the lawyer fees referred in Article 65 of Law 472 of 1998, it must be understood that they include VAT and it should not be discounted any additional value. In case of having signed a contract, parts should adjust to what was stipulated.

According to Article 437-1 of the Colombian Tax Code, the Ombudsman should retain 15% of the total of the generated tax.