Colombian Tax Flash - September 2009

(1) Income Tax Treaties. –

Since the execution of the income tax treaty with Spain that entered into force on October 2008, the first of its kind in the Country, Colombia has executed similar treaties, not yet in force, with Chile on April 2007, Switzerland on October 2007, Canada on November 2008, and with Mexico on August 2009. Currently, the Government is negotiating income tax treaties with Belgium, Czech Republic, Germany, South Korea, Netherlands, India, and the United States of America.

Congress recently approved the income tax treaty with Switzerland (Act 1344-2009), which prior to its ratification is now pending the required constitutional review from Colombia's Constitutional Court. The Constitutional Court recently ruled declaring the income tax treaty with Chile constitutional (Ruling C-577-2009), clearing the way for its ratification and entry into force in the near future. The treaties with Canada and Mexico are now pending both the approval