We share our Tax Bulletin No. 15 from September 2019, with the latest decisions and opinions released by the Council of State 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 us.
1.1. On September 12th, 2019 the Ministry of Finance and Public Credit issued the Decree 1669 regulating the tax exemption for the creative industries (orange business)
On September 12th, 2019 the Colombian Ministry of Finance and Public Credit issued the Decree 1669 that regulates section 235–2 of Colombian Tax Code (“CTC”). This section of the CTC contains the exemption from income tax that benefits companies involved in the promotion of creatives industries in Colombia; the so-called orange business.
2. Tax Rulings
2.1. Tax Ruling No. 14307 issued by Colombian Tax Authority on June 5th, 2019
In Tax Ruling No. 14307, the Colombian Tax Authority set forth that, the withholding tax triggered in the distribution of dividends to national or local companies is also transferable to the final beneficiaries located abroad.
2.2. Tax Ruling No. 10718 issued by Colombian Tax Authority on May 7th, 2019
By means of Tax Ruling No. 10718, the Colombian Tax Authority pointed out that, individuals qualified as non-residents for Colombian tax purposes are required to submit exogenous information, as long as they met the requirements established in article 1 of Resolution 45 of 2018. The income that will be considered to determine this obligation will be those obtained in Colombia.
2.3. Tax ruling No. 17334 issued by Colombian Tax Authority on July 5th, 2019
The Colombian Tax Authority explained trough Tax Ruling No. 17334, that the transfer or contribution of assets to a trust must be made by its tax basis. The above, bearing in mind that article 102 of the Colombian Tax Code provides that, fiduciary rights shall have for tax purposes the tax basis and the tax conditions of the goods or rights contributed.
2.4. Tax ruling No. 011458 issued by Colombian Tax Authority on May 14th, 2019
In terms of Tax Ruling No. 011458, VAT paid in the import, formation, construction and acquisition of real productive fixed assets can only be taken as a tax credit in the income tax return.
3. Judgements of the Council of State
The Council of State issued on July the 4th, 2019 a judgement overriding partially section 12 of the Decree 1794 of 2013.
On July the 4th, 2019 the Council of State issued judgement 22482 overriding partially section 12 of the Decree 1794 of 2013. The overridden section indicated that only the labor unions and associated work cooperatives were entitled to calculate the VAT over the AIU (payments in advance, contingencies and profit) regarding the cleaning and food services.
4. Projects of Decrees and Resolutions
4.1. The Colombian Ministry of Finance and Public Credit issued a draft of decree that aims to regulate section 800-1 od CTC.
The Colombian Ministry of Finance and Public Credit issued a draft of decree that aims to regulate section 800-1 od CTC. This draft of decree sets forth the requirements that must be met by the individuals or entities that can profit the Public Works (obras por impuestos) benefit.
4.2. The Colombian Ministry of Finance and Public Credit issued a draft of decree that aims to regulate the individual´s income tax.
The Colombian Ministry of Finance and Public Credit issued a draft of decree that aims to regulate that aims to regulate the individual´s income tax considering the changes introduced by law 1943 of 2018.
4.3. The Colombian Tax Authority issued a draft of resolution regarding the form for the fiscal reconciliation that must be filed for fiscal year 2020.