Colombia – New Procedures for Disclosing Overseas Assets

Colombia – New Procedures for Disclosing Overseas

This GMS Flash Alert reports that by October 22, individuals considered as resident in Colombia for tax purposes and obligated to file a Colombian income tax return must file an overseas assets declaration.

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Resolution 00096 of September 14, 2015, issued by the Colombian tax authority (i) prescribes the declarative form to complete and submit in respect of overseas assets owned by individuals and (ii) determines who is liable to file the form.  Individuals considered as resident in Colombia for tax purposes and obligated to file a Colombian income tax return are subject to completing and submitting this form, which must include a declaration of any assets owned outside of Colombia, at January 1, 2015. 

WHY THIS MATTERS

The Colombian government is stepping up efforts to inhibit tax avoidance and bring into the tax net assets that should be subject to Colombian taxation.

Affected individuals need to be aware of the new rules and requirements and take steps to identify assets subject to declaration to the tax authority.  Failure to comply with the rules, could subject individuals to considerable penalties.

There is a tight deadline for individuals to meet their filing obligations, so if subect to these rules, they should act without delay.

Further Details on When and How to File

It is important to bear in mind that the timeframe for filing this form on time begins October 8 and ends on October 22.  Filing must be done through the Web site of the DIAN (Dirección de Impuestas y Aduanas Nacionales) – the URL is: www.dian.gov.co.  To do this, an individual must have a digital signature, which can be obtained from the DIAN.  

The data requested by the DIAN for this information return includes:

  1. Jurisdiction (country) in which the asset is located. 
  2. Type of asset. 
  3. Identification of the asset.  The individual must indicate the unique code that identifies the asset to declare according to the laws that are applicable in the jurisdiction where it is located.  In case identifying by means of a unique code is not possible, the filer must indicate on the form “DOES NOT APPLY.”
  4. Net equity value.  To register the net equity value of any assets owned overseas, such value must be estimated in Colombian pesos using a valid exchange rate at 31 of December of the year immediately before the year one files the form. 

Please note that a penalty fine for failure to accurately report can be assessed by the DIAN at an amount of 5 percent of the value of the asset that was omitted from or under-valued in the form.

CONTACTS

For additional information or assistance, please contact your local GMS or People Services professional or one of the following professionals with KPMG Tax & Legal in Colombia:

 

María Consuelo Torres

tel. +57 (1) 618 8000

mctorries@kpmg.com

 

Carlos Enrique Neira Recamán

tel +57 (1) 618 8000 ext. 1511

ceneira@kpmg.com

The information contained in this newsletter was submitted by the KPMG International member firm in Colombia.

© 2016 KPMG Impuestos y Servicios Legales Ltda, a Colombian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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