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Legal Bulletin

taxbulletin

DIAN REVENUE RULING

THE COLOMBIAN TAX ADMINISTRATION (DIAN) ISSUES A RULING ON THE REQUIREMENTS FOR DEDUCTING OUTBOUND PAYMENTS MADE TO PERSONS OR ENTITIES LOCATED IN TAX HAVENS

The Tax Authority stated that payments made to persons or entities located in tax havens are deductible if the reality and transparency of the operation can be demonstrated.

LEGAL UPDATE

EXPIRATION OF THE BENEFITS OF PROGRESSIVITY IN THE PAYMENT OF PAYROLL TAXES AND PROGRESSIVITY IN THE PAYMENT FOR THE COMMERCIAL REGISTRY RENEWAL, AS PER LAW 1429

According to Law 1429 of 2010, the abovementioned benefits remained in force until December 31, 2014.

DIAN REVENUE RULING

TAX EXEMPT INCOME IS TAXED WHEN TRANSFERRED BY A COLOMBIAN BRANCH TO ITS PARENT COMPANY

Colombian tax authority (“DIAN”) considers that the transfer of tax exempt income by the branch to its parent company is characterized as dividend distribution; and therefore the tax exemption is not preserved.

DIAN REVENUE RULING

COLOMBIAN TAX AUTHORITY CLARIFIES THE SCOPE OF AN EXPRESSION WITHIN THE LATEST TAX REFORM AS TO THE INCOME TAX’S VAT CREDIT

The tax authority interpreted the term of art “among others”-included in Section 67 of Law 1739 of 2014- as a merely instructive disposition, rather than restrictive in determining the scope of “capital assets” for purposes of claiming the VAT credit derived from the acquisition of capital assets.

DIAN REVENUE RULING

SCOPE OF APPLICATION OF THE VOLUNTARY DISCLOSURE TAX

DIAN clarifies some doubts on the retroactive application of the voluntary disclosure tax established by Law 1739 of 2014, as well as on the appropriate moment in which it can be employed.

DIAN REVENUE RULING

DIAN CLARIFIES ITS INTERPRETATION CONTAINED IN REVENUE RULINGS 69997 OF 2013 AND 72430 OF 2013

DIAN states that the special deduction for the investment in fixed assets can be maintained in corporate reorganizations, and defines the income tax treatment of the contributions of goods different to money.

INTENATIONAL TRADE

PACIFIC ALLIANCE’S TRADING BLOCK FRAMEWORK AGREEMENT UPHELD CONSTITUTIONAL BY THE COLOMBIAN CONSTITUTIONAL COURT

Colombian Constitutional Court found the Pacific Alliance Framework Agreement to be constitutional.

INTENATIONAL TRADE AND CUSTOMS REVENUE RULING

DIAN ADDRESSES THE REQUIREMENTS FOR VALUE ADDED TAX (VAT) EXCLUSION AND DUTY FREE BENEFITS CONTEMPLATED IN LAW 1715/2014 FOR RENEWABLE NON-CONVENTIONAL SOURCES OF ENERGY

VAT exclusion requires a certification from the Ministry of Environment, while duty free benefits are only applicable to imported goods not produced in Colombia.

INTENATIONAL TRADE AND CUSTOMS REVENUE RULING

CUSTOMS AUTHORITY, DENIES THE POSSIBILITY FOR NON-FREE TRADE ZONE USERS TO SETTLE IN FREE TRADE ZONE AREAS AND TO PERFORM ACTIVITIES THAT THE LAW RESERVES FOR FREE TRADE ZONE USERS

Only holders of the qualification as free trade zone users may exercise industrial activities and provide services in permanent free trade zone areas.