Income Tax and supplementary taxpayers in Colombia who engage in activities with related parties and/or are subject to the application of the rules governing the transfer pricing regime, such as those with transactions with low or no-tax jurisdictions, must have documentation that shows the agreed upon transactions in accordance with the arm’s length principle.

Pursuant to what is established in Articles 260-5, 260-9, and in paragraph 2 from Article 260-7 of the Colombian Tax Code, [in Spanish: Estatuto Tributario], the aforementioned taxpayers are obligated to submit a Transfer Pricing Informative Return, and to prepare and send a Local Report and a Master File of the supporting documentation, when:

• Their gross assets on the last day of the respective year or for the taxable period is equal to or greater than the equivalent of one hundred thousand (100.000) – Tax Value Units, [in Spanish: UVT], are $4.706.500.000 COP, or when their gross taxable income from the respective year is equal to or greater than the equivalent of sixty-one thousand (61.000) – Tax Value Units are $2.870.965.000 COP (informative return).
• There will be no need to prepare or send the Local Report and the Master File of the supporting documentation for those types of operations as indicated in Article  1.2.2.3.2. of this document, when the cumulative annual amount does not exceed the equivalent of forty-five thousand (45.000) – Tax Value Units are $2.117.925.000 COP for the 2024 fiscal year, to which the supporting documentation relates. Likewise, for transactions with jurisdictions that are considered tax havens, there will be no need to file the Local Report if the amount of the transaction does not equal or exceed 10.000 Tax Value Units that are $ 470.650.000 COP.

Is your company obligated to comply with the transfer pricing regime for the 2024 fiscal year? Here is a guide:

The content of this newsletter is merely informative, that´s why it cannot be used under any circumstances as advice on the matter described in it. 

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