Tax Authorities of Colombia (DIAN) published a proposed transfer pricing (TP) regulations to execute the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) Action 13 and to establish the analysis for intercompany commodities transactions, which would effect for fiscal year 2017.

Master file: According to the proposed transfer pricing regulation, the master file would have to compile the global functional and financial information of the multinational group. The report must contain information regarding the group’s structure, description, intangibles, intercompany transfer pricing policies and financial and tax positions.

Local file: The local file must include information about each intercompany transaction with related parties located in foreign country, local free trade zones, and tax haven countries. The proposed regulations may raise the threshold to approximately USD 450,000 per type of transaction for the local file requirement.

Country-by-Country (CbC) report: The CbC report would include information about the international distribution of income and taxes of the multinational group along with other components of its business action in each of the jurisdictions.  Resident companies would have to inform the tax administrations about the entity within the business group in charge of preparing and submitting the CbC report. The CbC report would apply to fiscal year 2016 and afterward and the initial CbC report would have to be submitted no earlier than 31 December 2017.

Intercompany commodities transactions: According to law 1819 of 2016 it was established guidelines for the priority application of the comparable uncontrolled price (CUP) method for the transfer pricing analysis of intercompany commodities transactions. Here the meaning of commodity contains metals, minerals, hydrocarbons, energy, agricultural products and, in general, goods with indexed prices used as a reference in the market.