DIAN Resolution No. 000071 of 2019 in Colombia prescribes the format for the Fiscal Reconciliation Report (Reporte de Conciliación Fiscal) as required by numeral 2 of article 1.7.1 of Decree 1625 of October 11, 2016. This resolution applies to the tax period 2020 and modifies article 1 of Resolution 000052 of October 30, 2018, which relates to the annexes of the fiscal reconciliation report for the 2019 tax year.

Key aspects of Resolution 000071 include:

• It establishes the mandatory format and sections that taxpayers must fill out, keep, and present as part of the fiscal reconciliation report. For taxpayers with fiscal gross income below 45,000 Tax Value Units (UVT), only certain sections must be completed, including the cover page, Statement of Financial Position (Patrimony), and Statement of Comprehensive Income (Net Income).
• The resolution specifies the form of presentation of the information, including the use of Annex Form 210, Format model No. 2517, which must be completed by taxpayers subject to income tax and complementary taxes who are required to keep accounting records or who voluntarily choose to do so and declare using Form 210.
• It maintains other provisions established in the previous resolution (000052 of 2018) regarding the fiscal reconciliation report annexes.

DIAN Resolution No. 000071 of 2019 and Colombia’s CbC reporting obligations operate in parallel but cover different aspects of tax compliance: the former focuses on fiscal reconciliation reporting formats for income tax purposes, while the latter addresses multinational group transparency and transfer pricing documentation under international standards.

DIAN Resolution No. 000071 of 2019 in Colombia prescribes the format for the Reporte de Conciliación Fiscal (Fiscal Reconciliation Report) related to transfer pricing and tax reporting obligations, including country-by-country (CbC) reporting requirements. This resolution establishes the XML format and technical specifications for submitting these reports electronically to DIAN, the Colombian tax authority.

Key points about the CbC reporting XML format under this resolution include:

• The resolution is based on the regulatory framework of the Decreto 1625 of 2016 and aligns with international standards, particularly those from the OECD BEPS Action 13 on transfer pricing documentation and CbC reporting.
• The XML format follows the OECD Common Reporting Standard (CRS) and related XML schema guidelines, ensuring compatibility with international tax transparency standards. DIAN provides detailed XML schema and user guides for structuring the data, including elements like ReportingPeriod, Timestamp, and taxpayer identification data (TIN, country codes, etc.).
• The resolution mandates electronic submission of the CbC report in the specified XML format through DIAN’s platform, facilitating automatic processing and validation.
• The XML format includes detailed data elements for multinational groups, reporting entities, and related financial and tax information to comply with Colombia’s transfer pricing and tax transparency requirements.