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Colombia Ruling Provides that Liquidation or Capital Reduction of Sole Shareholder Companies Subject to Indirect Transfer Rules

|Approved Changes|Colombia
Colombia

The Colombian tax authority (DIAN) recently published Ruling 911418 of 30 December 2020 concerning the application of the indirect transfer rules in relation to non-resident sole shareholder companies that undergo a liquidation or reduction in capital. In general, the rules provide that the indirect transfer of shares in companies, rights, or assets located in Colombia, through the transfer, un…

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