Find the latest and most relevant tax-related regulations, jurisprudence and legal doctrine below. Do not hesitate to contact our Tax Department should you have any questions.
• Decree 2442 of 2018
• Tax Ruling 967 of 2018
• Decree 2469 dated December 2018
• Resolution 12635 dated December 2018
• Resolution 190 of 2018
• Ruling N° 20588 of 2018
• DIAN Ruling No. 018551 dated 17 July 2018
• Letter 6 dated 31 December 2018
• Decree 2483 of the Ministry of Commerce dated 28 December 2018
Relevant Decrees in Tax Matters
• Decree 2442 of 2018. The National Government established the Tax Calendar for 2019 through this Decree.
• Decree 2483 of the Ministry of Commerce dated 28 December 2018. This Decree gathers and updates IFRS standards for Groups 1 and 2 obliged by these regulations. Important modifications were made so it is suggested to identify these changes and the corresponding application for accounting recording purposes.
• Decree 2469 dated December 2018. Based on this Decree, the Ministry of Finance has modified the regulations concerning the mechanism titled Works for Taxes in the ZOMACs (Zones Most Affected by the Armed Conflict [from the Spanish Acronym]).
Relevant Resolutions in Tax Matters
• Resolution 12635 dated December 2018. Pursuant to this Resolution, DIAN establishes a listing of those who shall be considered Large Taxpayers, during taxable years 2019 and 2020. It is important to note the special conditions established for the compliance with the formal tax duties of the large taxpayers, both at the National, and at the Regional and Municipal levels, so it is suggested those duties are properly identified.
• Resolution 190 of 2018. Tax Calendar for BOGOTÁ. Resolution 190 establishes the deadlines to comply with applicable tax duties for ICA [Industry and Commerce Tax], the property tax, and other capital district taxes, as well as any discounts applicable to the advance payment of those taxes. If commercial, industrial or services operations are conducted in various municipalities or cities in the country, we recommend the discounts for advance payment of taxes are verified in January, particularly the ICA, and the property tax; these discounts may result in tax savings. Therefore, we recommend, all Municipal Tax Codes are revised to identify the existence and requirements to have access to such tax discounts.
DIAN Tax Rulings:
• Ruling N° 20588 of 2018. Tax Treatment of Preference Shares. In this Ruling, DIAN has stated that under article 33-3 of the Tax Statute, Preference Shares are considered as a debt and not as an investment in the capital of the company issuing the stocks. Hence, payments made as returns of said shares shall be considered for tax purposes as interest or financial returns, and not as dividends. This has relevant implications in terms of determining the withholding tax applicable, both for payments in Colombia, and payments abroad, and of the application of treaties to avoid double taxation, as well as for discount purposes in the tax presumptive basis since those preference shares can be discounted as a debt from that basis.
• DIAN Ruling No. 018551 dated 17 July 2018. Withholding tax for returns from a Collective Investment Fund. Through this Concept, DIAN revises the legal framework applicable to the withholding taxes applicable to the returns obtained by a Collective Investment Fund, and the application of the Principle of Transparency for tax purposes to the participants of the Funds.
• Letter 6 dated 31 December 2018. VAT tax basis for the import of finished products produced abroad or to free zones. Given the important modification made to the VAT tax basis on the importation of finished products received from abroad or at a free zone included under article 8 of the Financing Law (Law 1943 of 2018), DIAN issued this Letter in order to point out that as of January 1st, 2019, the tax basis mentioned shall be the same tax basis taken into account to settle customs duties, by adding the value of this tax and the value of the production costs, without discounting the value of the national item exported.
• Tax Ruling 967 of 2018. Tax treatment of Contracts of Concession and Public-Private Partnerships during the precontractual, construction, management, operation, and maintenance stages. This Tax Ruling indicates the analysis made to the tax treatment of concession contracts and PPPs, especially regarding the taxation forms of the revenue, costs, and expenses in the various stages of operation, as well as the recording of the intangible assets derived from this type of contract.