Tax Bulletin No. 12

We share our Tax Bulletin No. 12 of June 2019 with the latest decisions and opinions released by the Administrative Tribunal of Cundinamarca and the Tax Authority, in connection with national and local taxes, and tax procedure.

The complete Bulletin is found only in Spanish in the below PDF, because of many domestic tax terms we are unable to translate for you. However, please find below the main subjects we will be speaking of in the Bulletin. If you are interested to find out more information, do not hesitate to contact.

1. Legislation

1.1. Decree 961 issued June 2019

On June the 5th, 2019 the Ministry of Finance and Public Credit issued the Decree 961 by means of which it regulates the national consumption tax on the sale of real estate. 

The Colombian Ministry of Finance and Public Credit regulated section 512-22 of the Colombian Tax Code related with the national consumption tax on the sale of real estate. The Decree contains several regulations regarding the collection of the tax.

1.2. Decree 1070 of June 2019

The Ministry of Finance and Public Credit issued on June 13th, 2019 the Decree 1070 regulating the income tax exemption that exists for the sale of social interest housing. 

With the issuance of Decree 1070 of 2019, the Colombian Ministry of Finance and Public credit set forth the requirements that must be met to be able to benefit from the income tax exemption that exists for the sale of social interest housing.

1.3. Resolution 33 issued by the Colombian tax Authority on May 2019

The Colombia Tax Authority issued on May 22^nd of 2019 the Resolution 33 related with the obligations of taxpayers subject to transfer pricing regimen regarding the filing of reports before the Colombian Tax Authority. 

Resolution 33 of 2019, contains the procedure that need to be comply by the taxpayer that must file a local report, a master report and the supporting documentation when they are subject to transfer pricing regime. 

2. Rulings 

2.1 Ruling 15398 issued on June 2019

The Colombian Tax Authority issued the ruling 15398 of 2019 which contains some specifications regarding scope of the consumption tax on real estate. 

The Colombian tax Authority issued on June 2019 the ruling 15398 by means of which is answers several doubts that taxpayers have regarding the consumption tax on real estate. The ruling contains the interpretation of the Colombian Tax Authority regarding several issues such as: (i) what does it mean “alienation in any manner”; (ii) is the consumption tax triggered among others discusions that have arosen.

2.2. Ruling 7164 issued on March 2019

The Colombian Tax Authority issued the tax ruling 7164 of 2019 regarding the discount that can be carry out by  the employers subject to the Income Tax Simple Regime for the contributions to pensions.

2.3. Ruling 047 issued on June 2019 by Technical Council of Public Accounting

On June 11th, 2019 the Technical Council of Public Accounting issued ruling 047 by means of which it indicates the accounting treatment that has to be applied to assets and liabilities held abroad. 

3. Judgements 

3.1 Judgement issued by the Consejo de Estado on February 28 of 2019 by Magistrate Julio Roberto Piza Rodríguez

On February 28th, 2019 the Consejo de Estado issued a judgement analyzing the requirements that have to be met in order to take assets from the inventory for self-consumption.  

4. Projects of Decrees and Resolutions

On june 2019, the Colombian Ministry of Finance and Public Credit presented several projects of Decree. Among those projects we can find the following ones:

• Project of Decree that regulates section 235-3 and 235-4 of the Colombian Tax Code related with mega-investments carried out in Colombia.
• Project of Decree that regulates the withholding tax applicable to withdraws of resources that were placed in AFC and AVC accounts.
• Project of Decree that regulates the income tax applicable to distribution of dividends.