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January 11, 2022
Colombia issues resolution on ultimate beneficial owners
The resolution establishes the criteria for determining the ultimate beneficial owner that should be reported before the Colombian Tax Authority, as well as the information to be reported, the technical requirements for reporting the information and the deadlines for submitting the information.
On 27 December 2021, the Colombian Tax Authority issued Resolution No. 164, establishing the criteria for identifying the ultimate beneficial owner (UBO) of legal entities or structures without legal status (individuals that (1) are the owners of, (2) control or (3) benefit from, the relevant entity), as well as the information that will be compiled in the UBO registry (RUB, per its acronym in Spanish).
This Tax Alert highlights the most significant aspects of Resolution No. 164.
Who must provide information about UBOs?
The following legal entities or structures must submit information about UBOs:
Who must be reported as UBO?
The following table sets out who must be reported as a UBO:
When a structure without legal personality holds (directly or indirectly) shares/interests in a legal entity or has any of the roles mentioned above with respect to another structure without legal personality, the structure must report its UBOs.
Specific rules are established for entities in the ownership chain that issued bearer shares or have nominal shareholders.
Information that must be reported
Taxpayers must report the following information about UBOs:
How should the information be provided?
Taxpayers must report the UBO information through the RUB electronic system. Resolution 164 contains a technical annex with the technical specifications of the information to be reported.
Structures without legal personality that are not required to register before the Colombian Tax Registry (RUT, per its acronym in Spanish) must register before the Identification System of Structures without Legal Personality (SIESPJ, per its acronym in Spanish).
Deadlines to report UBOs
The following deadlines apply for reporting UBOs:
Due diligence to report UBOs
Legal persons and structures without legal status (or similar structures) must carry out all the necessary procedures to properly identify their UBOs, including identifying the corresponding chain of ownership and control. If they cannot identify one or more of the UBOs after carrying out all available procedures, they must report that to the RUB, with the reasons one or more UBOs cannot be identified.
The supporting documentation for identifying the UBOs must be kept for five years, beginning 1 January of the year following the one in which the UBOs are reported, updated or deleted from the RUB or SIESPJ (as applicable).
For additional information with respect to this Alert, please contact the following:
Ernst & Young S.A.S. Bogota
Ernst & Young LLP (United States), Latin American Business Center, New York
Ernst & Young Abogados, Latin America Business Center, Madrid
Ernst & Young LLP (United Kingdom), Latin America Business Center, London
Ernst & Young Tax Co., Latin America Business Center, Japan & Asia Pacific