Guidance on the coexistence of the corporate income tax ordinary regime and the special CHC regime for Colombian holding companies
The Colombian tax authority on January 17, 2025, issued Official Tax Opinion No. 100208192-69 concerning tax losses and corporate income tax exempt dividends under the Colombian holding company (CHC) regime.
The opinion clarifies that Colombian companies under the CHC regime can incur tax losses from activities in Colombia under the corporate income tax ordinary regime while receiving exempt dividends from foreign subsidiaries, which are treated as corporate income tax exempt dividends under the CHC regime.
According to the opinion, corporate income tax exempt dividends from CHC foreign subsidiaries will not be included in the corporate income tax taxable base calculation for ordinary activities conducted in Colombia by the CHC. As a result, these exempt dividends will not reduce the tax losses of the Colombian holding company.
KPMG observation
The opinion is significant as it provides guidance on the coexistence of the corporate income tax ordinary regime and the special CHC regime for Colombian holding companies, particularly in scenarios when a CHC has tax losses from Colombian activities and receives exempt dividends from foreign subsidiaries.
For more information, contact a KPMG tax professional in Colombia:
Ricardo Ruiz | +57 (1) 618 8000 | ricardoaruiz@kpmg.com
Pedro Madera | +57 (1) 618 8000 | pmadera@kpmg.com
Juan Carlos Urrego | +57 (1) 618 8000 | jurrego@kpmg.com