Transfer Pricing Deadlines Alert in Colombia December 2023

November 20, 2023

The Transfer Pricing statements are actually important in Colombia and many other countries, given that they are intended to ensure that commercial related-party transactions are at market prices and avoid tax base erosion.
In Colombia, there are four types of Transfer Pricing obligations to be filed every year, which have certain conditions a taxpayer must comply with to be subject to it. These conditions are detailed below:

1. Informative Affidavit (Form 120):

a) Gross income exceeding 61,000 Tax Value Units (COP 2,318,244,000) or gross equity of 100,000 Tax Value Units (COP 3,800,400,000) at the end of the fiscal year under analysis and having carried out related party transactions abroad.

2. Supporting Transfer Pricing Documentation (Form 1729):

a) Gross income exceeding 61,000 Tax Value Units (COP 2318244000) or gross equity of 100,000 Tax Value Units (COP 3,800,400,000) and at the end of the fiscal year under analysis, in addition to the amount of foreign-related party transactions must be at least 45,000 Tax Value Units (COP 1,710,180,000) or have transactions with companies resident in or with entities in non-cooperating, low, or no tax jurisdictions and preferential tax regimes for amounts equal to or greater than 10,000 Tax Value Units (COP 380,040,000).

3. Master File (Form 5231):

a) Taxpayers who are required to file the Informative Affidavit and the Local Report, consolidate financial statements, and are members of a Multinational Group.

4. Country-by-Country Report:

a) Taxpayers who are required to file the Informative Affidavit and the Local Report, consolidate financial statements, and are members of a Multinational Group whose consolidated income thereof exceeds or is equal to 81,000,000 Tax Value Units (COP 3,078,324,000,000,000).
For the current period 2023, the due dates for the declaration of the Master Report and Country by Country Report are in December, according to the last NIT (Número de Identificación Tributaria – Tax Identification Number) digit, as shown below: