X

Legal Bulletin

logo

DIAN REVENUE RULING

Applicable rules for the determination of the useful life of fixed assets

The Colombian Tax Authority ruled on the determination of the useful life of fixed assets as a result of the most recent tax reform

 

By means of the Revenue Ruling No. 021942 of August 16th 2017, the Colombian Tax Authority clarified some questions of taxpayers regarding the useful life of fixed assets, the computation of depreciation rates and the supporting documentation required to do so.

  • To support the useful life of an asset, taxpayers may use: technical studies, user manuals or reports. In case of not having one of them, they are permitted to use documents prepared by an expert.
  • The aforementioned is required for demonstrating the useful life apply only for fixed assets with a value greater than 50 UVT ($1.592.950).
  • The expert that can determine the useful life, does not require specific characteristics and qualities.