Colombia’s National Tax Authority (DIAN) has clarified that overseas assets and shares held in a foreign company owned by Colombian companies must be reported in the tax return.
The clarification was published in Opinion 100208192-628 of 2024 on 31 July 2024.
When a domestic enterprise holds an investment in a foreign entity that has a Special Economic Area (SEA) in Colombia, such investment is regarded as being made and owned abroad, it must be reported in the declaration of overseas assets, in compliance with the stipulations outlined in Article 607 of the Tax Code.
The objective is to gather data on assets owned abroad by Colombian residents to address tax evasion and avoidance issues. These returns will aid DIAN with an appropriate account of overseas assets, thereby enhancing its capacity to fulfil its auditing responsibilities.
