Tax & Accounting Blog

Colombia Publishes Resolution and Annex on Country-by-Country Reporting Procedures

BEPS, Blog, Global Tax Planning, International Reporting & Compliance February 1, 2018

On December 28, 2017, the Colombian tax authority (DIAN) published Resolution No. 000071 on country-by-country (CbC) reporting procedures for the 2016 tax year. See BEPS Action 13. The CbC report must be submitted electronically in XML format through DIAN.

Colombia also published an Annex to Resolution No. 000071, which includes information on how to prepare each data element included in the CbC XML Schema v. 1.0.

The CbC report for a multinational group must include the following information in Table 1 (Overview of the distribution of profits, taxes and economic activities by fiscal jurisdiction):

  • Name of the MNE group.
  • Reporting fiscal year.
  • Currency used.
  • Fiscal jurisdiction.
  • Income.
  • Profits (loss) before income tax (includes extraordinary income and expenses).
  • Income tax paid on a cash basis.
  • Income tax determined.
  • Declared capital.
  • Retained earnings.
  • Number of employees.
  • Tangible assets other than cash and cash equivalents.

The CbC report must include the following information in Table 2 (List of all entities that belong to the multinational group included in each aggregation by fiscal jurisdiction):

  • Name of the MNE group.
  • Reporting fiscal year.
  • Fiscal jurisdiction.
  • Member entities resident in the tax jurisdiction.
  • Fiscal jurisdiction of organization if different from residence tax jurisdiction.
  • Main economic activities.

Table 3 of the CbC report should include additional information that is considered necessary to explain the information in Tables 1 and 2.

For the 2016 tax year, taxpayers must submit the CbC report between February 12 and 23, 2018. Once submitted, if errors occur or the taxpayer chooses to make corrections, taxpayers must make adjustments within 45 calendar days after submitting the report.

Article 108 of Law 1819 of 2016 amends Article 260-5 of the Tax Code with respect to transfer pricing documentation, including CbC reporting.

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