We present a selection of the most important legal and tax news, rulings, decisions and regulatory developments of August 2026.
In each edition we compile the main pronouncements of the authorities and the changes that may affect companies, their operations and the fulfilment of their obligations.
Can withholdings be passed through when the silent partner in a joint venture agreement is itself the beneficiary of another trust?
DIAN clarified the scope of the tax transparency principle in a scenario where a trust (PA1) acts as the silent partner in a joint venture agreement (contrato de cuentas en participación), and that same PA1 has another trust (PA2) as its beneficiary.
The authority stated that two situations must be distinguished. If, in the relevant tax year, the beneficiary of PA2 cannot be identified, the income must be reported by PA2, and the withholdings applied to the managing partner will be proportionally credited in that return. If, on the other hand, the beneficiary of PA2 can be identified, the withholdings may be passed through to that beneficiary proportionally, unless it is a non-taxpayer that is not required to file, in which case no pass-through applies. Where there are several beneficiaries, their tax status must be reviewed individually.
(DIAN Ruling 011999 int. 1141 of 14 July 2026)
Read the ruling here (in Spanish)
Who must withhold tax when real estate is sold to a non-resident foreign company?
DIAN reiterated that, in the sale of real estate between legal entities, income tax withholding is, as a general rule, the responsibility of the purchaser or acquiring legal entity, which acts as withholding agent. The applicable rate is 2.5% where the property is not intended for residential use, regardless of whether it is a fixed or current asset.
The authority specified that this obligation does not change because the purchasing company is foreign and has no domicile or tax residence in Colombia, since the law recognises legal entities as withholding agents irrespective of their domicile. The only exception arises where the seller has been authorised or designated as a self-withholder, in which case the seller must withhold, report and pay the tax.
(DIAN Ruling 005148 int. 459 of 31 March 2026)
Read the ruling here (in Spanish)
DIAN reconsiders its position on VAT on gifts to clients
In resolving a request for reconsideration, DIAN revised the tax treatment of gifts that companies give to their clients as part of commercial strategies, distinguishing two scenarios:
- If the gift is not part of the company’s inventory, its delivery does not constitute a sale for VAT purposes. In this case, the VAT paid on its acquisition is creditable, and the value of the gift, excluding VAT, may be deducted for income tax purposes under article 107-1 of the Tax Code.
- If the gift is part of the inventory, its delivery is treated as a withdrawal of inventory and does give rise to VAT. That output VAT cannot be treated as creditable, but it may be added to the deductible cost or expense for income tax purposes.
(PQRS 000913-2025DP000176611 of 10 August 2026, DIAN – Legal Affairs Directorate)
Read the full document here (in Spanish)
How is accounting profit calculated for the minimum tax rate when the functional currency is not the Colombian peso?
DIAN clarified that, where a taxpayer has a functional currency other than the Colombian peso, the accounting or financial profit before tax (UC) to be used in calculating the minimum tax rate (TTD) is that resulting from financial statements prepared under the applicable accounting frameworks—Law 1314 of 2009, Decree 2420 of 2015 and IFRS—including the accounting rules on functional currency.
The authority clarified that article 868-2 of the Tax Code, which requires financial information to be kept and presented in Colombian pesos, merely sets the reference currency for tax purposes, and does not permit the accounting profit to be replaced by a profit reconstructed from historical tax records or by a private document prepared by the taxpayer itself.
(DIAN Ruling 007650 int. 674 of 6 May 2026)
Read the full ruling here (in Spanish)
What happens to the 2026 wealth tax following Constitutional Court judgment C-079?
DIAN clarified the effects of Constitutional Court judgment C-079 of 2026, which declared unconstitutional Legislative Decree 1474 of 2025, through which the wealth tax for 2026 had been amended. The Court ordered that taxes accrued under that decree not be declared, assessed or collected, and that amounts paid in advance be refunded.
The authority specified that this decision does not affect the 2026 wealth tax created by Legislative Decree 173 of 2026 and amended by Legislative Decree 240 of 2026, whose obligations remain in force. Consequently, the second instalment remains payable, except for non-profit entities under the special tax regime and legal entities in liquidation as at 29 April 2026, which are covered by the provisional suspension ordered by the Court in Order A-533 of 2026.
(DIAN Ruling 011166 int. 1045 of 26 June 2026)
Read the full ruling here (in Spanish)
DOWNLOAD THE PDF – CAÑÓN ASOCIADOS LEGAL UPDATE, AUGUST 2026 (in Spanish)
Cañón Asociados will continue to monitor the main legal and tax developments in order to share with its clients legal and tax information useful for decision-making.
To understand the scope of each pronouncement and its potential implications in specific situations, we are available to answer your queries.
