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5.3. Tax Consolidation / Group Treatment

Tax consolidation exists under corporate law ( grupoempresarial) and entails several reporting and filing obligation, including the obligation to prepare and file consolidated financial statements. However, Colombian tax law does not provide for tax consolidation rules and therefore, each company or entity belonging to a group of companies is independently liable for its substantive and formal tax obligations.

Notwithstanding the above, article 631-1 of the Colombian Tax Code states that registered business groups must file consolidated financial statements with their respective annexes before the tax authorities on an annual basis for control purposes.