France- 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
See MoreCanada: First Meeting in connection with Colombia FTA
An initial meeting has been held in connection with the negotiation of a free trade agreement (FTA) between Canada and Colombia. Colombia is Canada’s fifth-largest trading partner in Latin America and is an established market for Canadian
See MoreColombia: Information regarding comparable data range and segmented data uses
In accordance with the Regulatory Decree 3030 of December 2013, there is an economic link between the parties if the transaction is between a branch and home office, a transaction involving a permanent establishments, a related party transaction
See MoreColombia: Updates on documentation threshold’s, audit penalty and APA
According to the Regulatory Decree 3030 of December 2013, transactions over 32,000 UVT by type of transaction are subject to transfer pricing analysis only if the total amount of the transactions exceeds 61,000 TVU. In the case of transactions with
See MorePacific Alliance signs a free trade agreement
On February 10, at the eighth summit meeting of heads of state from the Pacific Alliance (PA), comprised of Chile, Colombia, Mexico, and Peru, a deal was signed that will remove 92% of tariffs on goods and services traded between the four countries.
See MoreColombia – New form for reporting withholding tax information
Colombia’s tax administration has recently released a new form to be used to make monthly information reporting of withholding tax. Form 350 reflects changes from the prior version of the form. Changes contained in the new form include a
See MoreColombia – New criteria for determining large taxpayer issued
Colombia’s tax administration has issued guidance establishing new criteria for determining who qualifies as a “large taxpayer”. Being identified as a “large taxpayer” may affect specific arrangements for paying taxes, and may affect both
See MoreColombia: Filing deadlines for large taxpayers
Colombia has issued Decree 214/2014, under which taxpayers qualifying as large taxpayers as of 31 January 2014 (previously, 31 December 2013) must file their income tax returns between 1 March 2014 and 24 April 2014 within the deadlines established
See MoreColombia: Thin capitalization provision
Under the Decree 3027 of 27 December 2013, the thin capitalization provisions interest is fully deductible up to a debt to equity ratio of 3:1. This applies to domestic and foreign loans from related or unrelated
See MoreColombia: Definitions for classification of resident individuals
Decree 3032 of 2013 has just been reported clarifying the classification of resident individuals into the employee and self-employed categories. The same Decree provide key definitions for employee; self-employed; personal service; liberal
See MoreColombia: Thin capitalization provisions
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
See MoreColombia: Proposal to Postpone the Scheduled Reduction of Financial Transactions Levy
It was published on 31 December 2013 that, during a jointly held session on 30 October 2013, the third and fourth permanent economic Constitutional commissions from both the Chamber of Representatives and the Senate approved, on first debate, bill
See MoreColombia: CREE Fair Tax Decree Issued
“Fair tax” is introduced by the Decree 2701 of 2013. “Fair Tax” is a tax which is payable by resident companies and non-resident companies deriving their income through a permanent establishment in Colombia. The decree was issued by the
See MoreColombian Sales Tax on Exports Get Exemptions
According to Decree of 2223 of 11 October 2013, the Colombian tax office has issued up-to-date guidance on the rules for applying VAT exemption on the export of services to foreign corporations. The conditions which must be present to qualify for a
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