Starting on September 9, 2026, the filing deadlines for Transfer Pricing obligations corresponding to the 2025 tax year will begin, based on the last digit of the NIT. These obligations include the Informative Affidavit on Transfer Pricing (Form 120) and, where applicable, the supporting documentation—Local File and Master File—.
The DIAN has also made the necessary tools available to taxpayers to comply with these obligations, including the Form 1125 pre-validator and the computer system for filing the relevant information.
Beyond the deadlines, there is one aspect that taxpayers should not underestimate: the specific penalty regime applicable when these obligations are filed late, contain inconsistencies, or are not filed at all.
A Specific Penalty Regime for Transfer Pricing
Article 260-11 of the Tax Statute establishes a specific penalty regime for supporting documentation and the transfer pricing informative affidavit.
Penalties vary depending on the violation and may be calculated—depending on the applicable scenario—based on the value of the transactions subject to documentation or reporting, on the transactions affected by the inconsistency or omission, and, in certain cases, on the taxpayer’s net income or gross assets.
With regard to supporting documentation, for example, when it is submitted within five business days after the deadline, the penalty for late filing is 0.05% of the total value of the transactions subject to documentation, with a cap of 417 UVT.
If the filing is made after that period, Article 260-11 provides for a different and more severe penalty structure, meaning that the delay can significantly increase the taxpayer’s liability.
Failure to File the Return Does Not Preclude an Adjustment by the DIAN
There is another relevant aspect of the regime that may go unnoticed.
Article 260-11 establishes specific rules regarding the Informative Affidavit when it is not filed or contains inconsistencies. However, this does not prevent the DIAN from making adjustments resulting from the application of Transfer Pricing rules to the income tax return for the respective taxable year.
In other words, failure to comply with the reporting obligation does not preclude the tax authority from reviewing the transactions and determining the corresponding Transfer Pricing adjustments.
Voluntary correction can reduce the risk
The regulations also provide mechanisms to correct certain inconsistencies or omissions and, under certain conditions, allow for reductions in applicable penalties.
In the case of the Informative Affidavit, certain penalties may be self-assessed at a reduced rate of 50% when the correction is made before notification of the statement of charges or the special demand, as applicable.
For supporting documentation, Article 260-11 also establishes mechanisms for reducing certain penalties, but under specific conditions and at specific stages of the proceedings.
Therefore, the reduction rules should not be applied across the board to all violations. Each situation requires identifying the type of noncompliance, the affected obligation, and the stage of the proceedings in which the taxpayer finds themselves.
Reviewing Before Filing Is the Best Prevention
With the September filing deadlines approaching, reviewing the information beforehand takes on special importance.
It is not enough to simply file on time. It is advisable to verify consistency between the Informative Affidavit, Form 1125, the Local File, the Master File—when applicable—and the financial and tax information supporting the analyzed transactions.
Identifying discrepancies before filing reduces the risk of inconsistencies, subsequent corrections, and potential penalties.
At TPC Group, we assist our clients in Colombia with the preparation and review of their Transfer Pricing obligations, verifying the consistency of the information before filing and helping them anticipate potential contingencies.
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