According to a recently published ruling, the National Tax Authority of Colombia pronounced on the non-application of tax benefits provided by Law 1429 of 2010 to small enterprises, as follows:
Decree 545 of 2011 regulates Law 1429 of 2010, providing details on the requirements that must be complied with by small enterprises for applying income tax benefits and cases when such benefits may be lost.
Regarding cases of non-application of tax benefits, DIAN referred to article 6(g)(h) of the Decree, according to which, income tax benefits may not be granted or may be lost by an enterprise that acquires, after its foundation, a commercial establishment, branch or agency from another enterprise or an individual carrying out a business through an enterprise; and an individual carrying out a business through an enterprise funded after Law 1429 of 2010 and whose assets include a commercial establishment, branch, or agency transferred by another individual or enterprise set up before Law 1429 of 2010.
The transfer of a commercial establishment owned by an individual, before Law 1429 of 2010, to a new enterprise seeking to apply for income tax benefits, prevents the granting or application of such benefits under article 6(g)(h) of the Decree.
