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...