Transfer Pricing in Colombia

Transfer Pricing in Colombia

Transfer pricing | Colombia

Our transfer pricing service aims for our clients to maintain profitability on their businesses complying with the country's regulations without affecting their tax base. That is why we offer up-to-date advice on the transfer pricing service from our headquarters in Bogotá, which covers accounting, tax and legal issues, on administration avoiding double taxation, for branches of foreign companies.

We offer:

Preparation of the supporting documentation (functional analysis and economic analysis), for the operations subject to the regime.

Provision and presentation of the individual informative statement of transfer prices.

What is transfer prices in Colombia?

The transfer prices, are studies that allow to know the economic value of the transactions made between related companies.

How is it regulated the Transfer pricing?

In Colombia, transfer prices are regulated under Decree 3030 of 2013.

In the tax statute, the regulations regarding transfer prices in Colombia are the following:

  • Art. 260-1 defines the criteria of economic connection.
  • Art. 260-2 establishes the taxpayers and the independent operator principle.
  • Art. 260-3 the methods to determine the transfer price or profit margin in transactions with related parties are indicated.

Who must present transfer prices in Colombia?

According to the regulations, companies that must present transfer prices must have 2 characteristics: 

  1. Transfer prices must be presented by companies whose gross assets on the last day of the year or taxable period are equal to or greater than the equivalent of 100,000 UVT (Tax unit value) or whose gross income of the respective year is equal to or greater than the equivalent of 61,000 UVT (Tax unit value)  that carry out operations with related parties. to what is established in articles 260-1 and 260-2 of the Tax Statute.
  2. Companies resident or domiciled in Colombia that have carried out transactions with persons, companies, entities or companies located, resident or domiciled in non-cooperating countries, although their gross assets as of December 31, 2015 or their gross income in the same year, would have been lower to the stops indicated in the previous numeral.