We share our Tax Bulletin No. 4 from the 15th to the 31st of August 2018 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. DIAN Press Releases
1.1 In the press release of August 29th 2018, DIAN announced to taxpayers that it is mandatory to issue a physical invoice when the electronic invoice software fails.
1.2 In the press release of August 16th, 2018, DIAN informed that sellers who are required to issue electronic invoices shall deliver the invoice to the purchasers at the e-mail registered in the data base of electronic invoice participants.
2. Tax Rulings
2.1 In the Tax Ruling number 15.841 of June 19th, 2018, the DIAN pointed that due to the rule contained in the Colombian Tax Code that refers to the International Accountant Standards (specifically to IAS16 of Property, Plant and Equipment), the residual value of the assets must be evaluated in accordance with the accounting framework rules.
2.2 In the Tax Ruling number 10.940 of April 30th, 2018, the DIAN explained that after the sale of a foreign branch located in Colombia by its Headquarter Office, the income tax return must be filed. On the other hand, the branch will have to cancel its former RUT, and will have to obtain a new RUT to inform its new owner, keeping the Tax ID number.
2.3 In the Tax Ruling number 17.140 of July 3rd, 2018, the DIAN confirmed that in joint accounts schemes, both, the managing party and the hidden party must file an income tax return separately, and will be taxed for the capital gains obtained from the contract.
2.4 In the Tax Ruling Number 17.143 of July 3rd, 2018, the DIAN explained that in Portfolio Purchase and Factoring operations, the amount by which the assets are negotiated does not represent a taxable income for the seller up to the main capital recovery.