Colombian law requires income taxpayers to file an informative return and supporting transfer pricing documentation in certain circumstances. The following summary will help determine if you or your business are required to comply with Colombia's transfer pricing legislation.
Who is required to file?
Colombian taxpayers that recorded a gross equity equal or larger than 2.975.300 thousands of Pesos (100.000 UVT)1 or a gross income equal or larger than 1.814.933 thousands of Pesos (61.000 UVT) on the last day of fiscal year 2016 are required to file an informative return if they carried out transactions with the following entities:
- Related entities located abroad;2
- Related entities located in free trade zones; and/or
- Related entities or third parties located in non-cooperating jurisdictions or in jurisdictions with low or no tax rates.
Additionally, taxpayers that meet the following characteristics are required to file transfer pricing supporting documentation:
- Carried out transactions equal to or larger than 1.814.933 thousands of Pesos (61.000 UVT) with related entities located in free trade zones or abroad. Of note, supporting documentation for transactions that are equal to or larger than 952.096 thousand Pesos (32.000 UVT) must be analyzed.
- Carried out transactions equal to or larger than a 297.530 thousands of Pesos (10.000 UVT) with related entities and/or third parties located in non-cooperating jurisdictions or in jurisdictions with low or no tax rates.
Deadlines for filing
Established by Decree 2105 of 2016, the deadlines to file the transfer pricing informative return and the supporting documentation are the following:
|Last digit of the NIT||Date|
|0||July 11, 2017|
|9||July 12, 2017|
|8||July 13, 2017|
|7||July 14, 2017|
|6||July 17, 2017|
|5||July 18, 2017|
|4||July 19, 2017|
|3||July 21, 2017|
|2||July 24, 2017|
|1||July 25, 2017|
Benefit from our experience
If you need to comply transfer pricing rules, our tax department can analyze your particular situation, prepare and file the requisite paperwork, and solve your business problems.
Dentons Cardenas & Cardenas has earned a strong reputation assisting clients with all types of transactions, providing quality service, timely compliance and knowledgeable advice.
1 UVT 2016= 29.753.
2 According to what is established in sections 260-1 and 260-2 of the Tax Code.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.