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When Do You Need a Transfer Pricing Study in Colombia and What Has Changed During Covid-19?

When Do You Need a Transfer Pricing Study in Colombia and What Has Changed During Covid-19?

Find out when businesses should carry out a transfer pricing study in Colombia, and changes in the regulatory environment that could impact your activities. Transfer pricing is a broad concept coined by the Organization for Economic Cooperation and Development (OECD) which encompasses a set of obligations for multinational enterprise groups who develop commercial transactions between their member companies. What is a transfer pricing study in Colombia? OECD issued a set of recommendations which have been progressively adopted by the member countries’ internal legislation, including by Colombia. In its most basic definition by OECD, a transfer price is “a price, adopted for book- keeping purposes, which is used to value transactions between affiliated enterprises integrated under the same management at artificially high or low levels in order to effect an unspecified income payment or capital transfer between those enterprises.” In the development of that definition, OECD issued a set of recommendations which have been progressively adopted by the member countries’ internal legislation, including by Colombia. In essence, transfer pricing regulations aim to reduce the shifting of profits from one jurisdiction to another through internal transactions inside a corporate group. Any transaction made with a company inside the same corporate group must be made amarket conditions. Who must comply with regulations for transfer pricing studies in Colombia, and how? Colombia, as a recently accepted member of OECD, has included the organization’s recommendations regarding transfer...

Corporate Tax Considerations in Bolivia

Corporate Tax Considerations in Bolivia

Taxes include fees, special contributions and municipal license deducted at various rates according to the individual’s or company’s financial and economic activity. Corporate tax or company tax is a direct tax by the government on a firm’s profit. The money is collected for the nation’s sources of income. The tax rate generates a legal obligation for the company or corporation on those domestic grounds of the region owes the government. Taxes vary around the world and are approved by the country’s government to be ratified. This allows state resources to develop welfare programs to improve the quality of life for citizens and support the growth of the economy. We look at Bolivian corporate tax requirements for companies to be aware of when expanding into the country. Who pays tax? All taxpayers in Bolivia have a tax identification number and issue the corresponding invoices. Taxes are applied to individuals that operate in liberal professions or trades, or manage savings and other accounts. Proprietorships are included as well - they are when a person has legal use of the assets and their operations and legal entities: They are companies identified by a social reason and societies formed according to the code of Commerce or according to the Civil Code. All natural or legal persons who have earned an income and gained finances through business activity are subject to tax payments. These activities include: commercial and industrial professions, ex officio members of a committee, rental of goods, works and services, transfer of movable and immovable property and rights....

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