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DIAN REVENUE RULING

Obligations of taxpayers as settlors, contributors or designated beneficiaries in revocable or irrevocable trusts incorporated abroad

The Colombian Tax Authority ruled on aspects concerning the Voluntary Disclosure Program (Amnesty) in relation to trusts incorporated abroad

 

By means of Revenue Ruling No. 034071 of December 2017, the Colombian Tax Authority determined the main aspects that should be considered by Colombian tax residents as settlors, contributors or designated beneficiaries, of trusts incorporated abroad concerning the Voluntary Disclosure Program (Amnesty).

Colombian tax residents who contribute assets to foreign revocable trusts, must disclose them annually in their income tax return at their tax basis, in accordance with the terms provided in the Tax Statute and must present the Annual Statement of Foreign Assets.

Colombian tax residents who contribute assets to irrevocable foreign trusts, must disclose them annually in their income tax return and other applicable returns, as long as they have their economic disposal in accordance with the provisions of section 263 of the Tax Statute.

Beneficiaries of an irrevocable trust shall declare the asset in their income tax return and any other applicable returns as long as they have their economic disposal in accordance with the provisions of section 263 of the Tax Statute.