Colombia has implemented the OECD’s Base Erosion and Profit Shifting (BEPS) Action 13 recommendations through its domestic legislation, including Country-by-Country Reporting (CbCR). The Colombian Tax Authority (DIAN) oversees these obligations to enhance tax transparency and combat tax avoidance by multinational enterprise (MNE) groups.

This guide provides a comprehensive overview of CbCR requirements in Colombia for finance professionals and tax departments.

Regulatory Framework

• Authority: Dirección de Impuestos y Aduanas Nacionales (DIAN)
• Legislation:
  • Article 260-5 of the Colombian Tax Code
  • Decree 2120 of 2017 and Decree 2150 of 2017
  • DIAN Resolution No. 000071 of 2019 (specifies XML format)
• International Engagement:
  • Member of the OECD Inclusive Framework on BEPS
  • Signatory to the Multilateral Competent Authority Agreement (MCAA)

CbCR Filing Requirements

• Who Must File:
  • Ultimate parent entities (UPEs) resident in Colombia with consolidated group revenue of COP 2.6 trillion or more in the previous fiscal year
  • Colombian subsidiaries may also be required to file if the UPE is not obligated to do so in its jurisdiction or there is no exchange agreement with Colombia
• CbCR Notification:
  • All Colombian constituent entities must file a notification to DIAN
  • Deadline: May 31 of the year following the end of the fiscal year
• CbCR Submission:
  • Deadline: December 31 of the year following the end of the reporting period
  • Format: OECD-compliant XML
  • Platform: Submitted via DIAN’s electronic filing system (MUISCA)

Penalties for Non-Compliance

• Failure to file or inaccurate submission may result in:
  • COP 207 million or more depending on the nature of the offense
  • Additional penalties and audit risks for continued non-compliance

Important Considerations

• Colombia also mandates the Master File and Local File documentation as part of its three-tiered transfer pricing framework
• CbCR is not required if the MNE group does not exceed the revenue threshold
• Consistency across CbCR, Master File, and Local File is essential for audit defence

Useful Resources

• DIAN Official Website: https://www.dian.gov.co
• OECD CbCR Portal: https://www.oecd.org/tax/beps/country-by-country-reporting.htm