Taxation of international executives
Tax returns and compliance
Tax rates
Residence rules
Termination of residence
Economic employer approach
Types of taxable compensation
Tax-exempt income
Expatriate concessions
Salary earned from working abroad
Taxation of investment income and capital gains
Additional capital gains tax (CGT) issues and exceptions
General deductions from income
Tax reimbursement methods
Calculation of estimates/prepayments/withholdings
Relief for foreign taxes
General tax credits
Sample tax calculation
When should income tax returns to be submitted to the tax authorities?
The tax authorities publish a schedule each year (in December of the previous year), which sets out the due dates for submission of the tax returns. Usually those are scheduled during August and the exact due date may differ for each individual based on the last two digits of their tax identification number (NIT).
What is the tax year-end?
The tax year coincides with the calendar year and ends on 31 December.
What are the requirements for completing tax returns in Colombia?
In general, an individual who have received income, after 31 December in any tax year, must submit a tax return if the income/value of their property is above a certain amount. Failure to do so will result in a monthly penalty, payable in arrears, equal to 5 percent (for each month) of the outstanding tax, capped at 100 percent of the amount payable plus default interests.
Taxpayers who fulfill all the following conditions are liable to submit a tax return for FY2019.
Taxpayers who are not resident for fiscal matters will have to pay the full current tax rate (35 percent for FY2019). It is important to mention that if a foreign individual was subject to a withholding of 20 percent, would not be liable to file the Colombian income tax return.
Any outstanding tax must be paid at the time of filing the return. Failure to pay tax when due will result in a penalty and interest will accrue daily on any unpaid taxes at a rate of approximately 28.16 percent per annum (until 31 January 2020, for liabilities associated to FY2019). On 1 February 2019, the government will announce the applicable rate for the next month.
All foreign nationals are required to obtain a National Identification Number (NIT) to be used in their tax affairs.
Employers are obliged to withhold tax from expatriates’ earnings every month as follows:
Any tax withheld will be taken into account in the calculation of the final tax liability.
A person who does not meet the criteria of a resident is considered to be a non-resident for fiscal matters.
A person who spends less than 184 days in any 365 days period in Colombia is therefore a non-resident for fiscal matters.
Colombian nationals and foreign taxpayers who are considered non-resident for fiscal matters, are liable for tax in Colombia only on income derived directly or indirectly from a Colombian source.
The applicable progressive tax rates to individuals deemed as tax residents are as follows:
Brackets for FY19 in COP |
Tax Rate |
Tax Calculation |
|
From |
To |
||
>0 |
37,354,300 |
0% |
0 |
>37,354,300 |
58,259,000 |
19% |
(Taxable Base – 37,354,300) x 19% |
>58,259,000 |
140,507,000 |
28% |
(Taxable Base – 58,259,000) x 28% + 3,975,320 |
>140,507,000 |
297,120,900 |
33% |
(Taxable Base – 140,507,000) x 33% + 27,004,760 |
>297,120,900 |
650,101,900 |
35% |
(Taxable Base – 297,120,900) x 35% + 78,683,920 |
>650,101,900 |
1,062,370,000 |
37% |
(Taxable Base – 650,101,900) x 37% + 202,227,270 |
>1,062,370,000 |
Onwards |
39% |
(Taxable Base – 1,062,370,000) x 39% + 354,763,040 |
It is important to bear in mind that progressive rates from 0-15 percent will apply to dividends, and it should be observed if such dividends were distributed as taxable for the individual or not. If dividends were distributed as taxable for the individual, an additional tax should be calculated, and then the progressive rates from 0-15 percent should be applied upon the gross income minus the other tax calculated.
A tax reform was approved in Colombia and is in force for FY2019 (For FY 2020, there is a new tax reform). The Law 1943 of 2018 introduced several changes to the individual’s tax structure. From FY 2019 (returns which will be filed in 2020), the rents received by individuals should be separated into “baskets” depending on the type of income:
1. General Basket (Which includes Labor Income, Capital income (interests or financial yields, rentals, royalties, etc.), and Non-labor income.
2. Pensions; and
3. Dividends.
In addition, there would be a regime for capital gains, understood as the gain obtained from selling assets possessed for more than 2 years. In this case, the tax rate applicable is 10 percent.
For foreign non-residents, the income tax rate for taxable year 2019 is 35 percent.
For the purposes of income tax, when is an individual considered to be a resident of Colombia?
Colombian law sets out that a person is considered resident for fiscal matters in Colombia if the individual remains in the country/jurisdiction, whether or not the stay is continuous, for a period of more than 183 days during a 365 days period or if, within the fiscal year, the 183 days are completed.
A resident also includes a Colombian national whose family, assets or business remains in the country/jurisdiction even though the Colombian national resides in a foreign country/jurisdiction.
A person who does not meet the criteria of a resident is considered to be a non-resident for fiscal matters.
A person who spends less than 184 days in Colombia during a 365 days period is therefore a non-resident for fiscal matters.
A person who is resident for fiscal matters in the country/jurisdiction is liable for tax in Colombia on worldwide income.
Taxpayers who are considered non-resident for fiscal matters, are liable for tax in Colombia only on income derived directly or indirectly from a Colombian source.
Is there a minimum number of days rule when it comes to residency start and end date? For example, a taxpayer can’t come back to the host country/jurisdiction for more than 10 days after their assignment is over and they repatriate.
The count of days spent in the country/jurisdiction is calculated upon the individual's arrivals and departures to/from Colombia during the taxable year, regardless of official assignment start or end dates.
What if the assignee enters the country/jurisdiction before their assignment begins?
If the individual enters the country/jurisdiction before their assignment begins, those days are also counted to determine the residence status for income tax purposes.
Are there any tax compliance requirements when leaving Colombia?
Besides airport and exit taxes, if an individual receives a bonus or other compensation related to services rendered in Colombia, after the end of the assignment such bonus or compensation is considered as taxable income in Colombia.
What if the assignee comes back for a trip after residency has terminated?
If the trip is during the same taxable year of the end of the assignment, those trip days will be also included within the calculation made to determine the residence status of the individual according to the counting days rule aforementioned.
Do the immigration authorities in Colombia provide information to the local taxation authorities regarding when a person enters or leaves Colombia?
Even though the immigration authority is an independent entity from the tax authority (Dirección Nacional de Impuestos y Aduanas Nacionales DIAN), the DIAN may request at any time the information of every individual who arrives or leaves the country/jurisdiction and may ask for the complete report of the arrivals and departures within a taxable year to determine the residence.
Will an assignee have a filing requirement in the host country/jurisdiction after they leave the country/jurisdiction and repatriate?
An assignee who has returned to their home country/jurisdiction, or who has been assigned to a different country/jurisdiction, may still be required to file an income tax return in Colombia, depending on the individual’s situation. For example, an assignee that began the tax year within Colombia and has returned to their home country/jurisdiction within the same taxable period will be required to file an income tax return, depending on the situation of the individual.
Do the taxation authorities in Colombia adopt the economic employer approach to interpreting Article 15 of the Organization for Economic Co-operation and Development (OECD) treaty? If no, are the taxation authorities in Colombia considering the adoption of this interpretation of economic employer in the future?
The tax authorities in Colombia have not considered yet the adoption of the interpretation of economic employer.
Is there a de minimus number of days before the tax authorities in Colombia will apply the economic employer approach? If yes, what is the de minimus number of days3?
The tax authorities in Colombia have not considered yet the adoption of the interpretation of economic employer.
What categories are subject to income tax in general situations?
As mentioned above, the rents received by individuals should be separated into “baskets” depending on the type of income:
In addition, there is a regime for capital gains, understood as the gain obtained from selling assets possessed for more than 2 years. In this case, the tax rate applicable is 10 percent.
Now, the new Colombian tax regime applicable to each income should not affect any other, therefore the respective taxable base (related to each basket) cannot be unduly affected by deductions, tax benefits, and costs and expenses that should only be charged to a particular income (belonging to a specific basket). As a result of the calculation process of each basket, a net income will be generated in each event, which will be added at the end to the other net income related to the other categories (baskets: labor income, capital income and non-labor income, pensions, and dividends), in order to determine the definitive income tax liability for the employee.
From the labor perspective all remuneration, fees, and allowances paid under an employment contract or as an independent worker are treated as taxable income to the extent they are received in return for services provided in Colombia. For this reason, all payments received in cash or in kind by an employee are taxable, regardless of where the compensation is paid.
Taxable income | Issues to take into account | |
---|---|---|
Non-resident for fiscal matters |
National source rents and occasional gains are taxable. In the case of residents, taxable income also includes rents and occasional gains from a foreign source. |
Wages paid in Colombia for work performed outside the country/jurisdiction are not considered to be income of national source. Therefore, non-residents would not be taxed on this income, nor would this income be subject to withholding tax. It is important to note that the Colombian entity should have the corresponding supports to demonstrate that the payments were made on behalf of a foreign employer. |
Foreign nationals on assignment in Colombia |
Rents and occasional gains from a national source are taxable. In the case of residents, taxable income also includes rents and occasional gains from a foreign source. |
Where an individual is paid overseas for services performed in Colombia, the amount of income that is considered as Colombian source income is calculated based on the number of days the expatriate provides the service in Colombia. |
|
|
During the period prior of the 184 days remained in Colombia, any income paid by Colombian entities will be subject to a withholding tax at 20 percent (If liable to file income tax return, applicable income tax return rates is 35 percent). It is important to bear in mind that if payments made abroad are recharged to Colombian entity, the Colombian entity should report this as labor payment and practice the corresponding withholding. |
|
|
Regardless of where payment is made for services provided in Colombia, the income will be taxable. |
Source: KPMG in Colombia, 2020
Expatriate compensation packages commonly contain the following taxable benefits:
Intra-group statutory directors
Will a non-resident of Colombia who, as part of their employment within a group company, is also appointed as a statutory director (i.e. member of the Board of Directors in a group company situated in Colombia trigger a personal tax liability in Colombia, even though no separate director's fee/remuneration is paid for their duties as a board member?
Only if any payment/compensation received is related to Colombian source.
a) Will the taxation be triggered irrespective of whether or not the board member is physically present at the board meetings in Colombia?
Yes.
b) Will the answer be different if the cost directly or indirectly is charged to/allocated to the company situated in Colombia (i.e. as a general management fee where the duties rendered as a board member is included)?
No.
c) In the case that a tax liability is triggered, how will the taxable income be determined?
It will be determined based on the tax resident status of the Director and regarding the source of the income related to their labor.
Are there any areas of income that are exempt from taxation in Colombia? If so, please provide a general definition of these areas:
• benefits in respect of an employer owned vehicle used for business purposes
• 25 percent of salary (gross income minus costs and deductions and other exempt income).
Voluntary contributions to pension funds or AFC savings account are considered as exempt income and limited to the 30 percent of taxable income or to an annual cap of COP130,226,000 (approx. 39,000 US dollars (USD)). Those contributions that are withdrawn before a minimum term of 10 years will be included, however, as income in the year of withdrawal, with the exception of withdrawals made to acquire real estate.
It is important to bear in mind that there is a limitation for exempt income and deductions, which cannot exceed 40 percent of gross income less health and pension contributions or COP172,720,800, for FY2019.
The provision of an employer-owned vehicle is not a taxable benefit where the vehicle is used mainly for work purposes.
For 2019, 25 percent of net salary is exempt from income up to a monthly maximum of COP8,224,800 (approximately USD2,400) and COP8,545,680 (approximately USD2,500) for the year 2020.
Once again, it is important to bear in mind that the tax reform introduced a limitation exempt income and deductions cannot exceed 40 percent of gross income less health and pension contributions or COP172,720,800, for FY2019.
Are there any concessions made for expatriates in Colombia?
Colombia does not have any concessions available for expatriates. The general regime for Colombian individuals applies to assignees.
Is salary earned from working abroad taxed in Colombia? If so, how?
The salary earned for working abroad is taxable in Colombia, when the individuals are deemed as tax residents. However, the Colombian tax legislation allows to claim as a tax credit the taxes paid abroad on the foreign source income, only to the amount that such income would be taxed in Colombia.
Are investment income and capital gains taxed in Colombia? If so, how?
For Fiscal year 2019.
For fiscal year 2019 the progressive tax rates which applies is the general basket tax rates: please find below
Brackets for FY19 in COP |
Tax Rate |
Tax Calculation |
|
From |
To |
||
>0 |
37,354,300 |
0% |
0 |
>37,354,300 |
58,259,000 |
19% |
(Taxable Base – 37,354,300) x 19% |
>58,259,000 |
140,507,000 |
28% |
(Taxable Base – 58,259,000) x 28% + 3,975,320 |
>140,507,000 |
297,120,900 |
33% |
(Taxable Base – 140,507,000) x 33% + 27,004,760 |
>297,120,900 |
650,101,900 |
35% |
(Taxable Base – 297,120,900) x 35% + 78,683,920 |
>650,101,900 |
1,062,370,000 |
37% |
(Taxable Base – 650,101,900) x 37% + 202,227,270 |
>1,062,370,000 |
Onwards |
39% |
(Taxable Base – 1,062,370,000) x 39% + 354,763,040 |
If the income received as investment income in this event is considered as a “Dividend”, then it should be observed that the Colombian tax regime to be applied would be the following:
At first a 35 percent on the amount of dividends received by the employee, plus an additional income tax rate according to the chart below, which it is applied to the difference between the total initial or gross amount of dividends less the mentioned 35 percent:
Taxable income bracket |
Total tax on income below bracket |
Tax rate on income in bracket |
|
From COP |
To COP |
COP |
Percent |
0 |
10,281,000 |
0 |
0 |
>10,281,000 |
Onwards |
(Dividends – 10,281,000) * 15% |
15 |
On the other hand, capital gains are generally taxed at 10 percent. For example, capital gains may arise on the sale of fixed assets, owned for more than 2 years.
Capital gains also arise on prizes, raffles, and lottery winnings in respect of any amount received in excess of the capital subscribed.
Investment income is normally included in the individual’s tax base.
A dividend includes any ordinary or extraordinary distribution, made in-cash or in-kind, by a company or similar entity, to its shareholders or partners, paid out of net profits earned in the tax year or retained from previous years, including an extraordinary distribution paid on the reorganization or liquidation of the company.
Interest income received by resident individuals or entities is included as taxable income and taxed under the ordinary rules. For legal purposes, interest is deemed to include all amounts paid by a debtor to a creditor, other than the initial credit granted, even where the amounts may be justified as fees, commissions, or other similar income. Interest also includes amounts paid by a debtor for services directly connected with the credit, which is in excess of amounts specified in the regulations.
Royalties derived from trademarks, patents, copyrights, know-how, and other intangibles assets are included as gross income and are subject to income tax.
After a certain amount of time with a company, an employee may be entitled to an option to receive shares as an award in an international group company. When considered as nonresident for tax purposes, employees are required to include the benefit of the share options when vesting or exercised (depending on the moment where the payment is made or received by the employee), associated to the services rendered in Colombia, in their annual income tax return, as with any other labor payments.
Resident employees are required to declare the benefit of the share options for services rendered overseas as well as in Colombia. The tax return must be filed on the following year in which the income is received.
Residency status | Taxable at: |
||
---|---|---|---|
Grant | Vest | Exercise | |
Resident | N | Y | Y |
Non-resident | N | Y | Y |
Other (if applicable) | N | Y | Y |
Any amounts received in a foreign currency should be converted into Colombian Pesos using the official rate of exchange at the date of payment.
The exchange rate difference, resulting from the adjustments to the closing value of assets, is also treated as income.
Adjustments in respect of exchange differences: payments made in a foreign currency should be recorded in Colombian Pesos, using the official rate of exchange at the date of acquisition.
At the year end, any outstanding balances should be extracted using the official rate of exchange at that date and any differences should be credited/charged to the profit and loss account.
Likewise, at the date when an outstanding balance is settled, any difference between the amount actually paid and the respective account payable should be credited/charged to the profit and loss account.
Please note that any inflationary component of the adjustment due to exchange rate differences is not deductible.
No information available.
Capital losses can be deducted from capital gains, resulting in a net capital gain or loss.
For the purpose of determining the net capital gain, no losses shall be allowed in respect of:
Where fixed assets are owned for less than 2 years, the profit or loss on sale of such assets should be treated as an ordinary taxable income.
No information available.
As capital gains for taxpayers subject to this tax are those originated in inheritance, bequests and donations, and the amount received as marital portion. Such gains are taxable based on the monetary value at the time the gift is received.
The monetary value of goods inherited or received as bequests, is the value recorded in the income and net worth tax return of the decedent on the last day of the taxable period prior to the year of their death.
Where donations are received as goods, their monetary value is determined from their fiscal value, recorded in the income and net worth tax return of the donor for the immediately preceding taxable period.
Where the property is acquired by the donor in the same year as the gift is made the monetary value of the donation is taken to be the fiscal cost.
Are there additional capital gains tax (CGT) issues in Colombia? If so, please provide details?
Capital gains are normally subject to ordinary income tax (10 percent), with the exception of a few items which are either subject to special tax rules or exempt from income tax altogether.
The taxable gain is the difference between the fiscal cost and the sale price.
When computing taxable income or capital gains from the transfer of immovable property in Colombia, the fiscal cost of the property should be adjusted in accordance with the calculation change in the consumer price index. In addition, the original cost may be adjusted by the value of improvements and additions.
To compute the capital gain derived from the transfer of shares or contributions that are treated as fixed assets, the cost should be adjusted in accordance with the consumer price index.
The cost of immovable property includes the cost of construction, any improvements to the property which have not been deducted as repairs, any expenses and taxes which were necessary to put the asset into use, any financial expenses which have been capitalized, and the adjustment for inflation up to December 2006, less any depreciation claimed.
The cost of movable property includes the acquisition price, the cost of any additions or improvements, any expenses and taxes which were necessary to put the asset into use, any financial expenses which have been capitalized and the adjustment for inflation up to December 2006, less any depreciation claimed.
Assets held for more than 2 years are subject to income tax at 10 percent, and are calculated independent from the taxable income.
Withholding tax is not applicable on the sales of shares through brokerage companies.
Profits from the sale of shares on a Colombian stock exchange are not taxable, providing the individual does not hold more than 10 percent of the shares of the company.
Are there any exemptions in respect of capital gains? If so, please provide details?
Assignments for death causes or marital portions to legitimate heirs and spouses. Inheritances or bequests to persons different from legitimate heirs and spouse. Capital gains are exempt from income taxation in the following instance:
No information available.
No information available.
What are the general deductions from income allowed in Colombia?
Generally, for income different than labor income, any expenses incurred during the year which are necessary to develop an income-generating activity are deductible. It is important to bear in mind the limitations established.
Certain items are deductible from an individual’s gross income to arrive at the net taxable base, as follows:
Once again, it is important to bear in mind that there is a limitation applicable to the exempt income and deductions, which cannot exceed 40 percent of gross income less health and pension contributions or COP172,720,800, for FY2019.
What are the tax reimbursement methods generally used by employers in Colombia?
Generally, employers in Colombia will refund the cost of expenses. Now, regarding withholdings, if the employer practiced a withholding which exceeded the liability of the employee, such employee could request directly the excess of withholding to the employer.
How are estimates/prepayments/withholdings of tax handled in Colombia? For example, Pay-As-You-Earn (PAYE), Pay-As-You-Go (PAYG), and so on.
The aim of withholding tax in Colombia is to collect the tax in the same period that it accrues, that is, tax is withheld on a monthly basis at the same time the salary payments are made to the individual (PAYE).
No information available.
No information available.
When are estimates/prepayments/withholdings of tax due in Colombia? For example: monthly, annually, both, and so on.
In the same month the tax accrues.
Is there any Relief for Foreign Taxes in Colombia? For example, a foreign tax credit (FTC) system, double taxation treaties, and so on?
If a tax resident individual pays tax in another country/jurisdiction, on income earned abroad (foreign source income), the amount of tax paid abroad may be deducted from the tax payable in Colombia, up to 100 percent of the tax payable in Colombia in respect of that income.
In addition, the tax credit is also capped to the 75 percent of the tax due that results from the calculation of the presumptive rent system.
What are the general tax credits that may be claimed in Colombia? Please list below.
A credit for foreign tax is available for residents for tax purposes. Any income tax paid overseas is taken as a tax credit from the Colombian tax, up to a maximum of 100 percent of the Colombian tax due in respect of that income.
In addition, the tax credit is also capped to the 75 percent of the tax due that results from the calculation of the presumptive rent system.
This calculation assumes a married taxpayer resident in Colombia with two children whose 3- year assignment begins 1 January 2018 and ends 31 December 2020. The taxpayer’s base salary is USD100,000 and the calculation covers 3 years.
|
2018 USD |
2019 USD |
2020 USD |
Salary |
100,000 |
100,000 |
100,000 |
Bonus |
20,000 |
20,000 |
20,000 |
Cost-of-living allowance |
10,000 |
10,000 |
10,000 |
Housing allowance |
12,000 |
12,000 |
12,000 |
Company car |
6,000 |
6,000 |
6,000 |
Moving expense reimbursement |
20,000 |
0 |
20,000 |
Home leave |
0 |
5,000 |
0 |
Education allowance |
3,000 |
3,000 |
3,000 |
Interest income from non-local sources |
6,000 |
6,000 |
6,000 |
Exchange rate used for calculation: USD1.00 = COP3,000.00.
Calculation of taxable income
Year-ended |
COP 2019 |
COP 2020 |
Days in Colombia during year |
365 |
365 |
Earned income subject to income tax |
|
|
Salary |
300,000,000 |
300,000,000 |
Bonus |
60,000,000 |
60,000,000 |
Cost-of-living allowance |
30,000,000 |
30,000,000 |
Net housing allowance |
36,000,000 |
36,000,000 |
Company car |
18,000,00 |
18,000,000 |
Home leave |
15,000,000 |
- |
Education allowance |
9,000,000 |
9,000,000 |
Total earned income |
468,000,000 |
453,000,000 |
Less: Not taxable income |
24,843,480 |
25,961,437 |
Sub total |
443,156,520 |
427,038,563 |
Less: Exempt income | 98,697,600 |
102,548,160 |
Total taxable income | 344,458,920 |
324,490,403 |
Calculation of tax liability
Year-ended |
COP 2019 |
COP 2020 |
Days in Colombia during year |
365 |
365 |
Taxable income as above |
344,458,920 |
328,633,000 |
Colombian value tax unit |
10,051 |
9,229 |
Tax in value tax units |
2,779 |
2,492 |
Total Colombian tax |
95,252,000 |
88,726,000 |
1. The official US currency is the US Dollar (USD).
2. Certain tax authorities adopt an ‘economic employer’ approach to interpreting Article 15 of the OECD model treaty which deals with the Dependent Services Article. In summary, this means that if an employee is assigned to work for an entity in the host country/jurisdiction for a period of less than 183 days in the fiscal year (or a calendar year of a 12-month period), the employee remains employed by the home country/jurisdiction employer but the employee's salary and costs are recharged to the host entity, then the host country/jurisdiction tax authority will treat the host entity as being the ‘economic employer’ and therefore the employer for the purposes of interpreting Article 15. In this case, Article 15 relief would be denied and the employee would be subject to tax in the host country/jurisdiction.
3. For example, an employee can be physically present in the country/jurisdiction for up to 60 days before the tax authorities will apply the ‘economic employer’ approach.
4. The profit or loss generated in the sale of fixed assets owned for less than two 2 years must be treated as an ordinary taxable income.
5. Articles 24, 25, 46, 55, 56, 90, 126-1, 126-4, 241, 242, 245, 246, 247, 329 to 343, 283, 388,
407 to 411, and 592 to 594 and the Colombian National Constitution, Article 338.
All income tax information is summarized by KPMG Advisory, Tax & Legal S.A.S., the Colombian member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Colombian Tax Code, Articles 24, 25, 46, 55, 56, 90, 126-1, 126-4, 241, 242, 245, 246, 247, 329 to 343, 283, 388, 407 to 411, and 592 to 594 and the Colombian National Constitution, Article 338.
All information contained in this publication is summarized by KPMG Advisory, Tax & Legal S.A.S., the Colombian member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The information contained in this publication is based on the Colombian tax code, law 1943 of 2018, decree 1625 of 2016 and subsequent amendments, additional tax legislation and tax authority guidance.
© 2021 KPMG Impuestos y Servicios Legales Ltda, a Colombian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.