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Tax Bulletin No. 13

July 2019

We share our Tax Bulletin No. 13 of July 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

The Ministry of Finance and Public Credit issued Decree 1146 of 2019 by means of or which it regulates section 118-1 of the Tax Statute related to the thin capitalization rule

Law 1943 of 2018 modified section 118-1 of the Colombian Tax Code which contains the Colombian thin capitalization rule.

Due to the modification, the Colombian Government issued the Decree 1146 of 2016 regulating the modification. The decree contains several definitions of terms included in section 118-1 and procedures that must be comply with in order to verify the deductibility of the interests.  

On June 26, 2019 the Colombian Tax Authority issued Resolution 37, by means of which it creates Special Committees of Conciliation and Termination by Mutual Agreement

Through Resolution 37 of 2019, the Colombian Tax Authority (DIAN) created the Special Committees of Conciliation and Termination by Mutual Agreement in accordance with sections 100 and 101 of Law 1943 of 2018.

Through this resolution, the DIAN established, the officials that should integrate the committees and their powers, among other issues.

The DIAN extended the deadline to register for Alternative Taxation regime - SIMPLE. to August 8, 2019.

2. Rulings

Through the issuance of ruling 7147 of March 2019, the DIAN resolved concerns regarding article 90 of the Tax Statute

In this ruling, the Tax Authority states its position regarding the sworn statement required by section 90 of the Colombian Tax Code in the sale of real estate among other issues.

Through ruling 7156 of 2019, the Directorate of National Taxes and Customs established its position in relation to the treatment of compensation for emerging damage.

The DIAN issued ruling 8159 of 2019, whereby it resolved concerns related to the thin capitalization rule.

On April 5, 2019, the Colombian Atx Authority issued ruling 8159 of 2019, whereby it resolved different concerns raised in relation to the Colombian thin capitalization rule included in section 118-1 of the Tax Statute.

Through this concept, the Tax Authority referred to the concerns related to the scope of the following expressions: indirect loans, substantial creditors and, "another operation in which substantially such affiliates act as creditors."

On April 1st, 2019, the Colombian Tax Authority issued ruling8756 related to the subjects that can qualify for the Alternative Taxation regime - SIMPLE.

The Colombian Tax Authority issued ruling 8756 of 2019 by means of which it indicated that a Colombian company whose shareholder partners or participants are Colombian residents and employees of such company, can qualify for the Alternative Taxation regime - SIMPLE.

Through ruling 8759 of 2019, the Colombian Tax Authority indicated the treatment of income tax for those employers who hire employees with disabilities

On April 11, 2019, the DIAN issued the ruling 8758 in which it indicated that the tax benefits included in Law 361 of 1997 and Law1429 of 2010 (among others) for employers who hire staff with disabilities or in a condition of vulnerability are in force.

Through ruling 779 of 2019, the Colombian Tax Authority revoked its previpus rulings related to income earned due to exchange differences.

The DIAN pointed out that, since the issuance of concept 08035 of 2005, the regulations related to income due to exchange differences have been modified twice and that, currently, the sections 228 of the Colombian Tax Code is applicable to these situations.

Publication
Boletín No. 13- Jul 2019
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Authors

Natalia Guerrero
Natalia Guerrero
Partner
Bogotá
Javier Orozco
Javier Orozco, LL.M.
Associate
Bogotá
Helena-Salazar-CMS-Colombia
Helena Salazar