Local Tax Authorities (DIAN) issued the Decision number 000072 from August 11, 2021, that establishes the procedure to file the:

• The TP Return (Formats 120 and 1125); and,
• The Notification of the CbC

Taxpayers that should file the TP Return must fulfill the boxes 37 to 44 of Format 120 to accomplish with the Notification of the CbC. On the other hand, taxpayers that should not file the TP Return for the FY2020 and belonging to a MNE must comply with the duty of the Notification of the CbC using the format uploaded by DIAN on its Webpage and send it via email.

Bear in mind that the due dates are the same of the TP Return:

In case that your Company must file the Notification of the CbC before DIAN and wants our assistance, please let us know as soon as possible to guide you in the process and avoid penalties.

Below we will explain briefly the implications for the no submission of the Notification of the CbC: 

1. The penalties are stated in Section 651 of the Colombian Tax Code (TC) and not in the TP Regime. 
2. Section 652 of the TC establishes that the penalty should not exceed COP 544,620,000 (approx. USD 142,000).
3. Furthermore, establishes that when the data is not revealed, is not correct, or filed later than the deadline, the penalty is 0.5% of the taxpayer’s net income.
4. The mentioned penalty could be reduced in the following scenarios: 

We are at your disposal if you require our support on TP issues, it is our interest to be able to provide our services in favor of the Company, which will allow you to value our personalized and efficient services with timely responses to your queries, thank you to the work of the largest law firm in the world (our team creates agile solutions to local, regional and global needs in 174 locations and more than 78 countries).