NEW VOLUNTARY DISCLOSURE PROGRAM FOR 2019
Equity tax and voluntary disclosure program
Those who wish to benefit from this assets regularization should file the corresponding return on September 25th 2019. No amendments or late filing would be accepted
Taxpayers who own assets which have not been reported or report non-existent liabilities as of January 1st 2019 could regularize them by paying a voluntary tax at the rate of 13% over either (i) the tax basis of the non-declared assets or (ii) the commercial valuation of the assets with a technical support. The taxable base of the tax would be reduced by 50% in case the foreign assets are reported and invested in Colombia for longer than two years. The rights held in private foundations, foreign trusts, cash-value insurance policies, investment funds or any other fiduciary business would be treated as fiduciary rights in Colombia for tax purposes. This means that those investment vehicles would be transparent for Colombian tax purposes and thus should reflect the tax basis of the underlying assets. Finally, structures that might be created for the purpose of transferring the unreported assets to entities with an artificially low tax basis will not be recognized and the tax base for the tax will be determined based on the tax basis of the underlying assets.