By Laura Pinilla, Associate, BaseFirma Colombia
On August 3, the Colombian tax office released Form 2573, designed to be used by taxpayers subject to the transfer pricing regime to register agreements related to transactions that involve commodities. This requirement was established by Law 1819 of 2016.
The new form follows Resolution 000067, issued by the Colombia tax office on June 19, which specifies how taxpayers should register the commodities transfer agreements.
The guidance applies to commodities agreements, contracts, offers, and acceptances, and other documents that support transactions carried out since fiscal year 2017.
Taxpayers have three months beginning August 3 to register commodities agreements voluntarily (this period is meant to verify the functionality of the software system).
Once the three-month period expires, starting on November 4, taxpayers will have one more month to register the commodities agreements established in Article 1.2.2.2.4.1 of Decree 1625 of 2016.
For agreements signed before the enactment of Law 1819 of 2016, or those that had any effect during fiscal year 2017, it is not required to fulfill all the information of Form 2573, only certain information described in Resolution 000067.
The Colombian tax office has released on its website a step-by-step instruction site to help taxpayers comply with the registration process.
The information required to fill in Form 2573 includes the taxpayer’s general information, information regarding the parties involved in the agreement, delivery terms, price fixed for the commodity, among other information.
It is important to note that non-compliance with this new requirement or the presentation of unreliable documents does not trigger any penalties.
However, if the tax office performs an audit, they might impose the price at which the transaction with related parties should have been arranged using the average price of the commodity at the shipment date registered in the shipping document or an equivalent document.
— Laura Pinilla is an associate with BaseFirma Colombia.
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