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Legal Bulletin

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INTERNATIONAL TAXATION

The Convention on Mutual Administrative Assistance in Tax Matters, adopted within the framework of the Organization for Economic Cooperation and Development (OECD), was enacted by Decree 343 of 2015
This multilateral instrument will allow for the automatic exchange of tax information between the signatory countries of the Convention.

INTERNATIONAL TAXATION

The Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion (DTA) between Colombia and South Korea becomes enforceable by Decree 342 of 2015
The bilateral treaty enables the prevention of double taxation, and reduces the tax rates when tax residents of each jurisdiction conduct business in the other.

INTERNATIONAL TAXATION

The Tax Information Exchange Agreement between Colombia and the United States was promulgated by Decree 344 of 2015
The bilateral agreement will allow for the automatic exchange of tax information regarding the tax residents of both countries, since the United States still has not confirmed from what date it will exchange tax information under the multilateral agreement of the OECD.

TAX DOCTRINE AND JURISPRUDENCE

Colombian Tax Administration (“DIAN”) rules on the calculation of the tax base of the Wealth Tax (“Impuesto a la Riqueza”), and the National Government establishes the dates for the filing and payment of the Wealth tax and its complementary Voluntary Disclosure Tax (“Impuesto de Normalización”)
The Colombian Tax Administration has confirmed that the appreciation of property, plant and equipment is not included in the tax base of the Wealth Tax. The Government sets dates for the filing of the Wealth Tax returns, and its complementary Voluntary Disclosure Tax.

TAX DOCTRINE AND JURISPRUDENCE

Official doctrine of the Colombian Tax Administration (“DIAN”) regarding the complementary Voluntary Disclosure Tax (“Impuesto de Normalización”)

Assets held abroad directly by Colombian tax residents that have been included in their income tax returns by an inferior value to their real tax value, are not subject to the Voluntary Disclosure Tax.

TAX DOCTRINE AND JURISPRUDENCE

Non-binding ruling of the Colombian Tax Administration (“DIAN”) regarding taxes paid abroad
The Colombian Tax Authority issued a non-binding ruling regarding the legality of the tax credit applicable for international transportation companies.

TAX DOCTRINE AND JURISPRUDENCE

Determination of the tax base of the Corporate Income Tax for Equality (“CREE Tax”) when tax losses occur
The Colombian Tax Administration (“DIAN”) released a non-binding ruling defining the minimum tax base for CREE Tax when tax losses occur.

TAX DOCTRINE AND JURISPRUDENCE

The Supreme Administrative Court (“Consejo de Estado”) suspended the rule which taxed deduction recapture income with the Corporate Income Tax for Equality (“CREE Tax”)
Taxpayers may refrain from incorporating in their tax base of CREE Tax the income generated from deduction recapture, and the Colombian Tax Authority (“DIAN”) may not demand its inclusion until the final decision by the Supreme Administrative Court is made.