April 1, 2022
Colombia modifies regulations on ultimate beneficial owners
The new resolution limits ultimate beneficial owner reporting to certain foreign entities and sets forth new due dates for submitting the information.
In Resolution No. 37 (issued March 17, 2022), the Colombian tax authority modified regulations on reporting ultimate beneficial owners (UBOs) (i.e., individuals who own, control or benefit from the relevant entity).
Resolution 164 of December 27, 2021 regulates the criteria for identifying UBOs of legal entities or structures without legal status (e.g., funds or trusts), as well as the information that must be reported to the UBO registry (see Tax Alert 2022-0052).
Foreign entities that must report their UBOs
The regulations previously required foreign entities to report their UBOs before the UBO registry when more than 50% of the value of their assets were located in Colombia, according to their financial statements. The resolution limits the UBO reporting obligation to foreign entities that do not make investments in Colombia through legal entities, permanent establishments, or structures without legal status.
Before the new resolution, legal entities and structures without legal status that were created before January 15, 2022 had to submit information about their UBOs before September 30, 2022. Legal entities and structures without legal status created on or after January 15, 2022 had to submit information about their UBOs within two months of registering before the tax registry (RUT) or in the Identification System of Structures Without Legal Status (SIESPJ).
Under the new resolution, legal entities or structures without legal status created before September 30, 2022 must submit the information about their UBOs (and register in the SIESPJ, if applicable) before December 31, 2022. Legal entities or structures without legal status created on or after September 30, 2022 must provide the information about UBOs within two months of their registration before the RUT or in the SIESPJ.1
1 Structures without legal status created after September 30, 2022, must register with the SIESPJ within one month of the structure's creation.