COLOMBIA: Tax Treatment on Dividends and Participation Distribution.

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Resolution No. 000108

On July 17th, the Colombian Authorities (DIAN) released Resolution No. 000108, amending the Final Beneficiaries’ Registry (“RUB”) Regulations. We highlight the following:

1. Information included in the RUB: when the final beneficiary that was identified dies or when the final beneficiary dies without completing the registration before the RUB, the information included in the Registry must refer to him/her. Once the undivided estate is liquidated, the RUB must be duly updated.

2. Duty to Preserve the Information: those obliged to provide information for the RUB purposes must keep the supporting documents as well as the due diligence performed during the time during which the relevant individual has been identified as the final beneficiary for a 5-year period as of January 1st of the subsequent year following the liquidation. In case of legal entities, structures, or similar cases that are liquidated or ended, the liquidator must jeep the information obtained, in line with the due diligence principle for 5 years as of January 1st of the subsequent year following said liquidation. 

3.  Communal Organizations as per article 7 of Law 2166 of 2021 must comply with the initial delivery of information to the Final Beneficiaries’ Registry through the Tax Authorities’ special division’s electronic systems until July 31st, 2024, and must include the information related to said date. Those incorporated as of June 1st, 2024, must do so within the next 2 months following the registration before the Tax Single Registry (“RUT”)