The Colombian government issued Decree No. 3027 on 27 December 2013 to clarify thin capitalization rules under Art. 118-1 of the Colombian Tax Code; the Decree applies from 1 January 2014. Under the thin-capitalization regime, interest generated on loans up to three times the tax equity of the taxpayer (as at 31 December of the previous year) is deductible. Any interest above this limit will be disallowed for tax purposes.