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.

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Official sourceDecreto 624 de 1989 — Compilación Jurídica DIAN

→ Art. 342

Art. 342

ARTICLE 342. INCOME FROM DIVIDENDS AND EQUITY PARTICIPATIONS. Article added by article 1 of Law 1819 of 2016. The new text is as follows: Income in this schedule consists of amounts received as dividends and equity participations, and constitutes taxable income in the hands of partners, shareholders, co-owners, associates, subscribers, and similar persons who are resident individuals and undistributed estates of decedents who were residents at the time of death, received from distributions from domestic companies and entities, and from foreign companies and entities.

Translator’s notes

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

cédula → schedule

U.K./OECD: schedule

Colombian income tax uses cédulas (schedules) to classify income types with different rates and rules. This is the dividends-and-participations schedule. Not a U.S. 'basket' or 'category'; the Colombian structure is closer to U.K. schedular taxation but with its own mechanics.

dividendos y participaciones → dividends and equity participations

U.K./OECD: dividends and participations

Participaciones covers distributions from partnerships, comunidades, and other non-corporate entities. U.S. lawyers may think 'partnership distributive share,' but Colombian law treats these as a single schedule alongside corporate dividends. Do not collapse into 'dividends' alone.

renta gravable en cabeza de → taxable income in the hands of

U.K./OECD: chargeable income in the hands of

Standard phrase: the income is taxed at the recipient level. En cabeza de = 'in the hands of' or 'at the level of.' Not 'attributed to' (which might imply a different timing rule).

socios, accionistas, comuneros, asociados, suscriptores y similares → partners, shareholders, co-owners, associates, subscribers, and similar persons

U.K./OECD: partners, shareholders, co-owners, associates, subscribers, and similar persons

Broad list covering equity holders in various Colombian entity forms: sociedades (companies), comunidades (co-ownerships), and other structures. 'Subscribers' (suscriptores) may include holders of certain investment vehicles. Do not limit to U.S. 'shareholders and partners.'

personas naturales residentes → resident individuals

U.K./OECD: resident individuals

Personas naturales (individuals) who meet the tax-residence tests of article 10. Not immigration status.

sucesiones ilíquidas de causantes que al momento de su muerte eran residentes → undistributed estates of decedents who were residents at the time of death

U.K./OECD: estates in administration of deceased persons who were resident at death

Sucesiones ilíquidas: estates that have not yet been wound up or distributed. The decedent (causante) must have been a tax resident when they died. U.S. lawyers: this is not the U.S. estate-tax regime; it is income-tax treatment of the estate as a continuing taxpayer for dividends received.

sociedades y entidades nacionales → domestic companies and entities

U.K./OECD: resident companies and entities

Nacionales = domestic (Colombian) under article 12-1. Includes corporations, partnerships, and other juridical persons organized or tax-resident in Colombia.

sociedades y entidades extranjeras → foreign companies and entities

U.K./OECD: non-resident companies and entities

Entities not meeting the article 12-1 domestic tests. The schedule applies to dividends from both Colombian and foreign sources, but withholding and credit rules differ (see articles 242-1, 254).

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Tax Statute (Estatuto Tributario)

Art. 342

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