New changes in the Income Tax Return due to a change in the ownership of the Foreign Investment

As provided in article 2 of Decree 1242 of 2003 and in accordance with articles 326 and 327 of the Tax Statute,

"(...) the change of ownership of the foreign investment includes all the acts that imply the transfer of the ownership of the fixed assets in which it is represented, whether shares or contributions in national companies, or other assets owned in the country by foreigners without residence or domicile in the country, including the transfers made to nationals".

The income and complementary tax return corresponding to cancellations or substitutions of foreign investment carried out as from the first (1st) of January 2017, must be filed exclusively on Form 150 and virtually. The return must be filed even if there is no tax due.

Substitution or cancellation operations carried out during 2016 that to date have not been declared, may do so through Form 150 or in those prescribed for such obligation in 2015 (110 -declaration for those obliged to keep accounting- or 210 -individuals not obliged to keep accounting-).

Corrections on cancellations or substitutions of foreign investment already declared must be made through the forms initially used.

The attorney-in-fact, agent or representative in Colombia of the investor must be registered on page 3 of the Sole Tax Registry (RUT) and have the electronic signature mechanism to file the return.

Finally, it is noted that the Income Tax Return for change of ownership of the Foreign Investment must be made for each operation or transaction within the month following the date of the transaction or sale.

With these changes, it is intended that the declaration process be carried out in an agile and reliable manner and from any part of the country or abroad.