Legal Bulletin


The Government proposes establishing a special anti-abuse rule for qualified non-for-profit entities.

The tax reform proposes establishing a criterion to identify the acts or circumstances that constitute abuse within the special tax regime.

For this purpose, the proposed law points the circumstances, in which the use of the special tax regime follows an abusive, simulated or fraudulent structure.

Those circumstances should be determined by DIAN, considering, among other aspects, that: (i) the main purpose of the entity does not follow the general interest (ii) goods or services are acquired by any title, directly or indirectly for the of founders, associates, statutory representatives, members of the governing bodies, spouses or relatives up to forth degree of consanguinity of any of them, or for any entity or person that has any economic connection with it.