The Colombian National Directorate of Taxes and Customs (DIAN) has published a draft resolution proposing to adjust the tax value unit the Tax Value Unit (UVT) for 2025 at COP 49,799.
Comments on this draft resolution opened for submission until 17 November 2024.
The UVT is a tool in the Colombian tax system which allows for the annual update of tax obligations, adjusting to the behaviour of the economy. If approved, this new value will be mandatory for calculating taxes and other related concepts starting 1 January 2025.
The UVT is utilised in various Colombian tax regulations, including determining tax penalties, individual income tax brackets, and thresholds for transfer pricing documentation requirements, such as the Local File, Master File, and CbC reporting.
This value was determined based on the annual change in the Consumer Price Index (CPI) for middle-income levels, covering the period from 1 October of the previous year to 1 October of the current year.
For 2024, the CPI variation, as reported by the National Administrative Department of Statistics (DANE), was 5.81%.
The draft resolution must be finalised and officially published before it can take effect.
