Report Of The Individuals Who Act As Ultimate Beneficial Owners 2023

Colombian legal entities are compelled to report to the Colombian Tax Authority (DIAN) the individuals who act as their ultimate beneficial owners (UBOs).

1. Deadline: July 31, 2023.

2. Individuals to be reported: it is necessary to identify if there is any individual, in the entity’s corporate chain, that meets any of the following criteria:

a) Ownership or benefit criterion: individuals who, acting individually or jointly, hold, either directly or indirectly, 5% or more of the capital or voting rights of the legal entity, and/or benefit 5% or more from its profits, assets, or yields; and

b) Control criterion: individuals who, acting individually or jointly, exercise direct and/or indirect control over the legal entity.

c) Default criterion: By defect, if it is no possible to identify any individual who meets the above-mentioned criteria, the individual who holds the position of the legal representative or who holds the position of the highest authority of the reporting entity, shall be reported as UBO.

It is crucial to conduct a thorough due diligence process that effectively identifies and enables the entity to accurately report its Ultimate Beneficial Owners (UBOs).

We would be delighted to offer our assistance in this regard.

For more information on this subject, please do not hesitate to contact us: phr@phrlegal.com