Colombia clarifies SIMPLE regime tax treatment of cross-border technical and consulting services with Ecuador under Andean Community rules.
Colombia’s tax authority (DIAN) issued Ruling 8971 int 1044 on 10 July 2025, confirming how technical assistance and consulting services are taxed when provided between Colombian and Ecuadorian entities under the SIMPLE regime.
DIAN clarified the treatment of cross-border technical assistance and consulting services under the SIMPLE regime.
When a Colombian SIMPLE regime company provides technical or consulting services to an Ecuadorian company by sending a person to Ecuador, and the Ecuadorian company withholds tax at source on the payment, the income received by the Colombian company is not subject to the SIMPLE regime unified tax in Colombia.
If the Ecuadorian company provides technical or consulting services by sending a person to Colombia and receives payment from a Colombian SIMPLE regime company, the latter is not required to withhold tax at the source of the payment.
