TaxCode

Tax Statute (Estatuto Tributario)

Decree 624 of 1989. DIAN compilation in Spanish, plus Luque Law’s unofficial U.S. English desk translation. Not a gazette; confirm the official Spanish text.

Spanish is the DIAN compilation. English is Luque Law’s unofficial U.S. desk translation, not a gazette.

Read continuously →

Official sourceDecreto 624 de 1989 — Compilación Jurídica DIAN

→ Art. 319-3

Art. 319-3

Article added by article 98 of Law 1607 of 2012. The new text is as follows: Acquisitive mergers and spin-offs are understood to be those mergers in which the entities participating in the merger are not related parties, and those spin-offs in which the transferor entity and the beneficiary entities, if they existed at the time of the spin-off, are not related parties. For purposes of determining whether or not a related-party relationship exists, the criteria established in article 260-1 of this Statute shall be applied.

Translator’s notes

Unofficial desk rendering (U.S. English). Notes flag ambiguity and the U.K./OECD equivalent a common-lawyer might expect.

fusiones y escisiones adquisitivas → acquisitive mergers and spin-offs

U.K./OECD: acquisitive mergers and demergers

Colombian tax law distinguishes fusiones adquisitivas (arm's-length mergers) from related-party reorganizations. The term 'acquisitive' signals that the parties are unrelated under art. 260-1. U.K. practice would say 'demerger' for escisión; U.S. tax lawyers use 'spin-off' or 'split-off'. Do not assume this imports U.S. tax-free reorganization rules (IRC § 368) or that Colombian escisión maps cleanly onto a Type D reorganization.

entidades participantes → entities participating

U.K./OECD: participating entities

Neutral term. Includes both natural and juridical persons as defined elsewhere in the Statute.

vinculadas → related parties

U.K./OECD: connected persons

Article 260-1 defines vinculación económica (economic relationship). This is the Colombian related-party test, not the U.S. controlled-group or attribution rules under IRC §§ 267, 318, or 1563. U.K. statute would say 'connected persons' (CTA 2010, Part 22).

entidad escindente → transferor entity

U.K./OECD: demerging company

The entity that splits off assets or a division. U.S. practitioners might say 'distributing corporation' in a spin-off context, but Colombian escisión is broader and includes partial splits.

entidades beneficiarias → beneficiary entities

U.K./OECD: successor companies

The entities receiving assets in the spin-off. Not necessarily shareholders; the statute contemplates entity-level transfers.

si existieren al momento de la escisión → if they existed at the time of the spin-off

U.K./OECD: if in existence at the time of the demerger

Acknowledges that beneficiary entities may be newly formed in the spin-off. The related-party test applies only if they existed beforehand.

Comments(0)

Be the first to comment on this section.

Tax Statute (Estatuto Tributario)

Art. 319-3

Comments(0)

Related CLKR articles

Tax Year and Filing in Colombia

Tax Procedure before DIAN in Colombia

Tax Incentives for Investment in Colombia

Free Trade Zones in Colombia

Customs Import Duties in Colombia

Tax Residency in Colombia