According to Colombian tax regulation, registration of technology import contracts before the Colombian Tax Administration (“DIAN” per its acronym in Spanish), is a requirement to deduct from income tax, the payments made abroad for technology imports, by tax payers.
Nevertheless, provisions governing this matter prior to the enactment of Law 1819 of December 29, 2016 did not contemplate a term for the registration of the contract.
Given the above, there was uncertainty regarding the timing for such contracts to be registered: Prior to the provision of the service? Prior to the remittance of the payment? Or, Prior to filing of the income tax return?
Recently DIAN in Legal Opinion No. 036286 of December 23, 2016, confirming Tax Court ruling No. 20351 of June 1, 2016, said that there was no express rule establishing the term to register contracts for technology import, prior to Law 1819 of 2016. Considering the above, DIAN could not require the compliance of this formality within a certain period of time in order to recognize the expense deduction.
Therefore, DIAN concludes that payments abroad related to technology import contracts executed prior to the issuance of Law 1819 of December 29, 2016 (Tax Reform), which have not been registered before DIAN can be deductible expenses, given that its registration can be made even after the remittance of the payment abroad.
Last, Law 1819 of December 29, 2016 clarifies that as from January 1, 2017 registration of technology import contracts must be made within 6 months counted as from the execution of the agreement. In case of a contract amendment the registration of the amendments must be made within the following 3 months. Otherwise, the deduction will not be acceptable.
We will gladly clarify any question on this matter