Certain taxpayers (both individuals and legal entities) have reporting obligations for the 2018 tax year concerning transactions with third parties (including clients).
The information is to be reported to the tax authority (DIAN). There are threshold amounts of revenue for those taxpayers required to report the information about their transactions (if a legal entity, reporting is required if total revenue for 2016 is greater than 100 million pesos, and for natural persons, if total revenue for 2016 exceeding 500 million pesos as well as other criteria).
There are guidelines for how to report the information (that is, in what field on the form). All Colombian legal entities and permanent establishments (subsidiaries) must report using form 5253, certain information about the ultimate beneficiaries (that is, those persons who have effective control over the company or its operations in the country). Failure to comply may result in penalties.
Read a 2019 report (Spanish) prepared by the KPMG member firm in Colombia
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