Legal Bulletin



Dividends from the profits generated by the elimination of liabilities by the application of the voluntary disclosure tax

DIAN Revenue Ruling No. 5723 of March 11th  2016


The Colombian Tax Authority – DIAN was requested to issue an opinion regarding what would be the tax consequences of the distribution of dividends from profits generated by effect of the elimination of liabilities, through the filing of the voluntary disclosure tax contained in Law 1739 of 2014.

With regards to whether the distributed dividends from the profits generated by applying the voluntary disclosure tax should be subject to taxation, DIAN indicated that the taxpayer should aby by the provisions of Sections 48 and 49 of the Colombian Tax Code, which indicate the formula for calculating the proportion of dividends distributed as untaxed for the shareholders.