DIAN REVENUE RULING
Insurance products acquired abroad should be reported as assets in the income tax return of Colombian tax resident individuals
The failure to report the value of these products in the income tax return is considered a punishable omission of assets
By means of Revenue Ruling 1731 of 2017, DIAN determined that Colombian tax-resident individuals that acquire retirement or educational insurance policies abroad, own assets that form part of their equity. As such, they must be included in their income tax returns.
DIAN reaffirmed that, according to article 261 of the Tax Code, the gross equity is composed of the total amount of assets and rights, appreciable in money, owned by the taxpayer in the last day of the taxable period. The value of assets and credits in foreign currency must be estimated in national currency the last day of the year or taxable year, according to the market rate.
If the pension or educational insurance policies acquired abroad are not included in the income tax returns, they will be treated as omitted assets, and subject to applicable penalties.