DIAN REVENUE RULING
DIAN clarifies the validity of the income tax benefits established by Law 1429 of 2010
Companies that were subject to these benefits will have a transitional regime
In its Revenue Ruling No. 479 of March 1st of 2017, the Colombian Tax Authority – DIAN- clarified the validity of the income tax rate progressivity benefits of Law 1429 of 2010.
By repealing article 4 of Law 1429 of 2010 the progressivity benefits in the income tax are eliminated. Starting January 1st of 2017, small companies that could have benefited from the progressive income tax rates are subject to withholding tax, the self-withholding referred in Decree 2201 of 2016 and presumptive income tax.
However, in accordance with the transitional regime introduced by article 100 of Law 1819 of 2016, companies that were incorporated under Law 1429 of 2010 can compute the income tax for a term that does not exceed five (5) years, depending on the year the benefit in which they are, taking into account the following table: