Transfer pricing

Globalisation has allowed world economy levels to increase, but this makes it more difficult for tax jurisdictions to establish suitable taxation for their taxpayers.

Like never before, information technology has become a spectacular tool in order for interaction between two or more countries to be carried out easily and effectively, removing borders in the area of international business.

Faced with this new global environment, taxing international transactions is vital for each tax jurisdiction, and one of the most important tools available today for achieving this objective consists of regulations on the matter of so-called Transfer Pricing intended to ensure that transactions carried out within Multinational Groups (operations between related parties) are performed under market conditions and, consequently, are not aimed at affecting the fair assignation of profits between the parties involved.

There are now more than 100 countries worldwide which already have regulations on Transfer Pricing, which are mostly in line with the OECD guidelines. Colombia is one of those countries.

Transfer Pricing reports in Colombia are an obligation for companies located in the country that carry out transactions with related parties residing abroad and were enacted in Colombian legislation several years ago. Nowadays, the Tax Statute and Decree 3030 from the year 2013 are their cornerstone.

At Auren, we have developed a team of professionals which, for more than 10 years, has been advising clients not only on how to comply with the aggressive regulations implemented in Colombia through the DIAN, but on how to defend themselves in the event of an additional determining of taxes as a result of a valuation imposed by the local authorities.

Our preventive diagnosis allows clients to design their transfer pricing policy whereby the annual reports to be submitted to the DIAN are supported by a previously validated guideline, making the fulfilment of the Colombian regulations easy and secure.

Our experts are here to serve you in order to evaluate and find the best solution for each specific case, regardless of the complexity of the transaction performed between the related parties of the business group.