DIAN REVENUE RULING
Deduction of royalties incorporated in the cost of acquired goods
The Colombia Tax Authority referred to the tax deduction of royalties associated with the acquisition of finished products
By means of Revenue Ruling No. 318 of March 23rd 2018, the Colombia Tax Authority considered that royalties that are incorporated into the cost of a finished good, paid at the moment of acquiring the product, are not tax deductible, unless the taxpayer demonstrates before the Tax Authority that the royalty was not included into the acquisition price of the finished product for its later sale.