Companies in Colombia that carry out activities with related parties and/or are required to apply the rules that regulate the transfer pricing regime, must have documentation that demonstrates that the operations were agreed in accordance with the arm's length principle in accordance with the provisions of the Tax Statute (TS) and the Single Decree 1625 of 2016, modified by Decree 2120 of 2017. 

Thus, if your gross assets as of December 31, 2023 are equal to or greater than Col$4,241,200,000 (100,000 UVT) or if on that date, you obtained gross income equal to or greater than Col$2,587,132,000 (61,000 UVT), you will be required to prepare an informative return of the intercompany operations carried out, as well as a report in which compliance with the Arm's Length principle is determined. 

Taxpayers will only be required to prepare an informative return if: a. Their operations with related parties abroad and/or in free trade zones did not exceed Col$1,908,540,000 (45,000 UVT) or, b. Their operations carried out with companies or persons located in non-cooperative countries or countries with low or no taxation do not exceed Col$424,120,000 (10,000 UVT).

On the other hand, if the operations carried out in the taxable year exceed the amounts referred to above, taxpayers will be required to prepare the informative return, together with the transfer pricing local and master file. The dates for the presentation of said reports and the informative return are the following:

It is important to note that the DIAN unified the date of submission of the local and master file report, the latter being submitted in the past in December.

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. If you need advice on any of the aspects discussed, our team of professionals will be willing to assist you. contacto@jadelrio.com