COLOMBIA

On February 23, the National tax and Customs Authority (DIAN in Spanish) published a resolution modifying the requirements for financial entities working with the entity when requesting authorization for collection and reception. The entity also issued another resolution regulating the way in which the Income Statement regarding Changes in Ownership of Foreign Direct Investment and Indirect Disposals are presented. Both measures are already in force.

The first resolution explains that the banking institutions already present in the country may obtain the authorization to receive and collect income when they abide by the conditions required as regards taxes, withholding taxes, advances, sanctions, interests, contributions and any other national taxes administered by the DIAN. They must also respect requirements regarding coverage, technical and administrative capabilities as set by the entity, including opening hours.

The second resolution explains that taxpayers must file an Income Statement for Changes in Ownership when they carry out direct disposal operations to non-residents. The change in ownership statements is obligatory, even when no taxes have to be paid. The foreign investor’s representative or agent in Colombia  is obliged to register with the Tax Services (RUT in Spanish).