On 19 July 2020, the Colombia Ministry of Finance and Public Credit has issued Decree 1054 of 2020, which determines the scope in tax matters of the concepts taxation of investment funds and (permanent establishments) PEs.
The Decree was issued to replace the provisions of the previous Decree 1973 of 2019. The following were established, among other things:
- Deferral of income in funds whose shares are traded on the stock exchange;
- Deferral of income in funds whose shares are not traded on the stock exchange;
- Funds whose main purpose is tax deferral;
- Obligations and joint and several liabilities of the withholding agent of the private equity fund or collective investment;
- Taxation of natural persons without residence in Colombia and of foreign companies and entities;
- Income and occasional earnings attributable to permanent establishments and branches; and
- Income taxed from dividends or profit-sharing.
