Colombia- Tax haven transactions subject to transfer pricing regime
The National Tax Authority of Colombia published Ruling 20776 of 2015 according to which transactions carried out with tax haven jurisdictions in tax year 2014 are subject to the transfer pricing regime. According to article 260-7 of the Tax Code
See MoreColombia: IMF comments on fiscal policy
The IMF issued a press release on 29 May 2015 following the conclusion of discussions with Colombia under Article IV of its articles of association. Real GDP grew at a rate of 4.6% in 2014 but is expected to slow to 3.4% in 2015 owing to the
See MoreNegotiations to DTA between Colombia and Panama
The first round of negotiations for a tax treaty between Colombia and Panama is started on 20 April 2015 in Panama City for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on
See MoreColombia: IMF makes recommendations on tax policy
The international Monetary Fund (IMF) has issued a report following a visit by staff to Colombia for discussions under Article IV of the IMF’s articles of agreement. The recent decline in oil prices is a challenge that is affecting Colombia’s
See MoreColombia and Portugal: DTA enters into force
On 30 January 2015, the DTA between Colombia and Portugal entered into force and it will applicable from first January 2016 for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on
See MoreColombia: Congress passed tax reform
On December 15, 2014, The Colombian lower house of Congress approved a tax reform that is take effect from first January 2015. The changes include a new wealth tax, surtax on the CREE, anti-evasion rules and levy to financial transactions. New
See MoreColombia: Foreign Ministry announces implementation of Free Trade Agreement (FTA) with the European Union (EU) and Peru
The Foreign Ministry of Colombia announced on November 6, 2014 a full implementation of free trade agreement (FTA) with the European Union (EU) and Peru. The FTA between the EU and Colombia has provisionally been applied since 1st August 2013. The
See MoreColombia: Issues tax heaven countries list
The Ministry of Treasury and Public Credit of Colombia issued Decree 1966 of 2014 on 6 October 2014 with a list of tax heaven countries, jurisdictions, domains, associated states and territories. Forty four (44) jurisdictions were listed as tax
See MoreColombia: Tax reform as effective from 2015
The changes of Colombian tax provisions were passed by the government in September 2014. The reform includes the provision for new tax on wealth which will be effective for tax year 2015 to 2018. The increase of the rate of surtax imposed on
See MoreColombia: Court has ruled thin capitalization rule constitutional
The Constitutional Court of Colombia has ruled that the thin capitalization has been incorporated into the tax law by Article 109 of Law 1607 of 2012 and the rule is constitutional. The claimant raised the issue that the deductibility limit is
See MoreCzech Republic-Colombia Income Tax Treaty details
The Income Tax Treaty (ITT) between Colombia and Czech Republic has accepted Colombian Congress and it was signed on March 22, 2012. The treaty was concluded in the Czech, English and Spanish languages and needs to be declared constitutional by the
See MoreEFTA- Colombia: Free trade agreements enters into force
The FTA (free trade agreements) between EFTA (European Free Trade Association) states- Iceland, Liechtenstein, Norway and Switzerland was signed on 25 November 2008. FTA between Colombia and Norway entered into force on 1 September and FTA between
See MoreColombia: National Tax Authority publishes rules on requirements to benefit from Law 1429/2010
The National Tax Authority has recently published (Ruling 34166/2014), referred to the requirements that small enterprises must comply with in order to benefit from Law 1429/2010 (Law on Formalization and Generation of Employment). According to the
See MoreFrance- Investment Protection Agreement with Colombia
The French-Colombian investment protection agreement was signed on 10 July 2014. The agreement will improve bilateral exchange. The agreement is expecting to give protection, clarity and a transparent legal framework for managing any capital
See MoreColombia: Rulings regarding the application of CREE tax to companies in liquidation
Colombia’s National Tax Authority (Dirección de Impuestos y Aduanas Nacionales – DIAN) has explained through Ruling No. 23001 that when a company is in liquidation it is still subject to the fairness tax (Impuesto sobre la renta para la equidad
See MoreColombia: Percentage of deemed interest on loans between companies and their partners or shareholders
The Colombian government issued decree 629 concerning income tax on 26 March 2014. This decree lays down that the deemed interest on loans between companies and their partners is to be set at 4.07% for year
See MoreColombia: issues regulations on thin capitalization provisions
The Colombian government issued Decree 627 on 26 March 2014. This Decree regulates the thin capitalization rules (article 118-1 of the Tax Code) that were brought in as part of the recent tax reforms and takes effect from the date of publication.
See MoreColombia: FTA with Colombia Passes Parliamentary Hurdle
Costa Rica's legislature approved a free trade agreement (FTA) with Colombia at its first reading on March 3, 2014. The FTA, which was initialed by both countries on May 23, 2013, is considered an important step to Costa Rica joining the Pacific
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