Global Tax Alert (News from Americas Tax Center) | 10 March 2014
Colombia issues new procedure for registering technology import contracts with the DIAN
Colombia's Tax Authorities (DIAN) have issued Resolution No. 62 on 24 February 2014, establishing a procedure for registering contracts for technology imports through the Electronic Information Service for Registration, Authorization and Certification.
Contracts required to be registered
The following types of contracts must be registered:
- •Technology licensing
- •Trademark licensing
- •Patent licensing
- •Technical assistance
- •Technical services
- •Basic engineering
- •Technology contracts
Contracts for licensing distribution, software use, or the use of literary, artistic or scientific property do not have to be registered due to copyright protection. Registration also is not required for contracts that contain clauses that refer to paragraphs 1 and 2 of Section 2 of Executive Order 259 of 1992, imposing restrictions on the exploitation of technology in Colombia.
To register, the beneficiary of the services must be enrolled in the Tax Registry (Abbreviated to “RUT” in Spanish) and domiciled or legally represented in Colombia. Registration is made on Form 020 and must contain the following information:
- •General information about the applicant
- •The type of imported technology that will be transferred
- •The value of the contract in American dollars (unless it is an undetermined amount agreement).
- •The contract information (identification of the parties, scope, term, signatures, written in Spanish or officially translated, and other requirements in Section 2 of Executive Order 259 of 1992)
- •The identity of the supplier and its location
- •A statement under oath as to the truthfulness of the information
- •Compliance with the provisions in Section 10 of Resolution No. 62
The contract must be attached to Form 020. If the contract is licensing intellectual property rights, the trademark certification or the certification of the patents issued by the Superintendent of Industry and Commerce must be attached to the form. The form and all of the necessary documents may be submitted within 10 business days after digitally signing the application through the DIAN digital signature mechanism.
Registration approval process
The DIAN will have eight business days to approve a registration. If no approval is made within such term, the contract will be held as registered. If the DIAN does not approve a registration, it must state its reasons within the prescribed period of time. Once registration is denied, a taxpayer may resubmit the application and correct any flaws indicated by the DIAN.
The registration will be effective from the date the contract was registered until the contract term ends. Annual renewals are not required. The registration may be terminated if there are changes or additions to the contract and the new contract must be registered.
The DIAN will still consider applications for registration made through the VUCE before the effective date of Resolution No. 62. Additionally, registrations that have been processed through the VUCE will remain in effect. Once the registration term has ended, a new registration application should be filed following the procedures of Resolution No. 62.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Ltda., Bogotá, Colombia
- •Ximena Zuluaga
+57 1 484 7170
- •Ricardo Ruiz
+57 1 484 7537
- •Clara Ines Inés Ramírez
+57 1 484 7337