During the second quarter of the year, in May 2024, Colombia had a total of foreign sales of 4,446.7 million dollars FOB, according to data from Dane and Dian, figures that showed the country’s wide capacity and participation in the international market. But how are prices regulated worldwide?
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Globalization and the rise of the digital world that is expanding every day and has touched international markets, which is why there is a need to regulate investment and capital movements by multinationals and entrepreneurs at an international level, reason why Transfer Prices were born, As Daniela Baquero, Senior Lawyer in the Transfer Pricing area of Ventus Consultores, mentions, they seek to regulate the operations that companies have with their affiliates (parent companies, subordinates or subsidiaries).
Today, this margin allows for control of sales prices worldwide and prevents negative manipulation by some companies. In addition, it benefits each part of the business equally without losing market profitability and guaranteeing a principle of full competition.
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“Complying with a Transfer Pricing policy is a good practice that has an effect on healthy competition between companies within the economy, which not only helps in building the country but also generates an incentive for foreign investment within our territory.”adds Baquero on the importance of this regulation.
Income tax return
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Among the various obligations that must be presented to the Dian annually is the Transfer Pricing obligation, recorded in the Tax Statute, and is regulated by the OECD (Organisation for Economic Co-operation and Development).
The obligation to comply with operations at market price is for taxpayers who generate operations with related parties abroad, free trade zones or entities with zero or low tax imposition, but it must be taken into account that the presentation of the transfer pricing information declaration is only required by those in the 2023 income tax return, they exceed a gross net worth of $4,706,500,000, gross income of $2,870,965,000 and, for supporting documentation, $2,117,925,000.
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Considering that it is a tax obligation, for this year, the presentation of these due dates begins in the month of September and are verifiable in accordance with the last digit of the NIT, The maximum period can be rectified in the calendar provided by the administrative entity.
This is not just the presentation of one more document, but as it is a tax obligation, compliance with it prevents the risk of inspection by the Tax Authority not only at the level of Transfer Pricing, but also in the Income Tax Return and complementary returns. Likewise, failure to comply with this registration entails sanctions for late submission, for inconsistencies in the information provided, for omission in the reported information, for correction, or for non-presentation..
