Starting from fiscal year 2024, according to the DIAN Resolution No. 00004 of January 24th, 2025, was implemented Format 115 as part of the Significant Economic Presence (SEP) framework,
This new requirement applies to non-resident individuals and foreign entities that meet the SEP criteria, enabling them to declare the Income Tax in Colombia.
What is SEP?
Significant Economic Presence (SEP) is a nexus approach that establishes tax obligations for foreign companies and individuals generating income in Colombia without a physical presence.
Who is Affected?
Entities or individuals outside Colombia that:
Exceed USD 275,000 in annual income from Colombian users.
Conduct regular sales of goods or provide digital services to Colombian customers.
New Reporting Requirement – Format 115
Format 115 allows non-residents and foreign entities to declare and pay income tax directly.
Income from goods and services must be reported separately for each bimonthly period to consolidate the total annual tax liability.