Taxpayers that are required to complete Form 120 should ensure that they have all of the necessary information and that the form is completed in a timely manner.

Colombia's Ministry of Finance and Public Credit released Form 120, which is the transfer pricing information statement for tax year 2017.

Taxpayers that carried out transactions with related parties abroad and those located in a free trade zone with a gross equity equal to or higher than approximately USD 1,062,000 or a gross revenue equal to or higher than USD 650,000 must file Form 120. In addition, taxpayers that carried out transactions with third parties in tax havens in 2017 must file Form 120.

Form 120 includes information related to the country-by-country (CbC) notification, which applies to all members of multinational groups subject to transfer pricing obligations in Colombia for fiscal year 2017. On Form 120, the taxpayer should indicate if the multinational enterprise must submit the CbC report and, if so, must include the reporting entity's identity and tax residence.

Form 120 also includes new information requirements. Some of the requirements are related to the disclosure of expense transactions that were or may be deductible and the city of residence of any related parties. Additionally, Form 120 includes a new requirement related to the "type of relationship" associated with preferential tax regimes.

———————————————