Colombia: Foreign Exchange Penalties and Regularization Tax
The Central Bank (BANREP) recently published Ruling 12363 of 2017 regarding foreign exchange penalties in the case of assets subject to the regularization tax. Details of the ruling are:
- According to Decrees 2245 of 2011, 1746 of 1992 and 2116 of 1992, foreign assets and investments that are subject to registration with BANREP for foreign exchange purposes, but are not timely registered, are subject to foreign exchange penalties.
- Article 39 of Law 1739 of 2014 eliminated the foreign exchange penalties in the case of late registration of foreign assets or investments subject to the regularization tax. For that purpose, section 7.6 of Executive Regulation DCIN 83 of BANREP provides a special procedure that must be applied in the case of late registration of foreign assets or investments that are subject to the regularization tax.
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