Due to the constant changes in Colombia that have generated tax effects on Transfer Pricing, tax advisors must be updated to provide a comprehensive consultancy. Therefore, they must be constantly updated regarding regulations, models, and international standards, as well as international information exchange agreements.
Most Relevant Issues
Among the most significant issues is the internalization of operations. In this regard, Transfer Pricing has special treatment in corporate groups, especially multinationals. On the other hand, there are bilateral international agreements and standards for the automatic exchange of information on financial accounts.
OECD Role
Colombia maintains an active participation in the Organization for Economic Cooperation and Development (OECD), which affects the territorial tax system to comply with these international standards, which have an increasing number of auditing and control processes.
Due to the increase in trade between related parties, Transfer Pricing must be considered a control mechanism for Income Tax taxpayers when performing related party transactions.
Source: Business Mail
