Recently, the Constitutional Court of Colombia issued ruling C-459 of November 9, 2023, under which it was declared unconstitutional the law that approves the Master Cooperation Convention executed between the Republic of Colombia and the Kingdom of Spain, which entered into force in 2022, considering that the impact of some articles that established tax benefits was not analyzed by the Colombian Government, failing to comply with the obligation set forth in article 7 of Law 819 of 2003.

Due to the above, the Constitutional Court urged the Colombian Government to submit as soon as possible a new bill approving such convention, incorporating the analysis of the tax impact, including the fiscal cost of these tax benefits and the sources of additional income generated for financing said cost.

Should you have doubts about the legal and tax effects with regards to the declaration of unconstitutionality of the above-mentioned law, do not hesitate to contact us.

Author: Juan Fernando Díaz I fdiaz@lloredacamacho.com I Tax Law