Colombian Tax Authority issues ruling on limitation of expenses incurred abroad in cases of futures contracts and forward agreements

Executive summary

On 23 April 2024, the Colombian Tax Authority (DIAN) issued opinion No. 758, which addressed whether the deductibility of loss/expense generated by futures agreements that are reached with nonresident entities is subject to the 15% limitation applicable to expenses incurred abroad. In addition, Colombian Tax Authority noted that forward contracts and futures agreements have some common characteristics that allow them similar tax treatment, as they both are derivative instrument…