Published on May 6, 2026
Form 420 issued by the National Tax and Customs Directorate (DIAN) for filing the 2026 Wealth Tax disregards the option available to taxpayers under Paragraph 3 of Article 295-3 of the Colombian Tax Code. Said paragraph provides:
““PAR. 3. In order to determine the taxable base of the wealth tax, the following rules shall apply:
- 2. The value of shares or equity interests in national companies or entities not listed on the Colombian Stock Exchange or on an internationally recognized stock exchange, as determined by the Special Administrative Unit of the National Tax and Customs Directorate – DIAN, shall correspond to the tax basis determined in accordance with the provisions of Title II of Book I of this Statute, updated annually under the terms of Article 73 of the Tax Code for shares or equity interests, from the date of acquisition. Shares or equity interests acquired before January 1, 2006, shall be deemed to have been acquired in the year 2006.
If the value calculated pursuant to the above rule is greater than the intrinsic value of the shares, the latter shall apply.
The intrinsic value shall be calculated by dividing the accounting equity as of January 1 of each year by the outstanding shares or equity interests …” (Emphasis added).
The form currently in force for this year disregards the option available to taxpayers to report their shares at either the adjusted tax basis or the intrinsic value, whichever is lower, for purposes of calculating the wealth tax payable.
DIAN is exceeding its authority, to the detriment of taxpayers’ rights.
This bulletin is for informational purposes only and does not constitute legal advice. For specific cases, we recommend obtaining tailored legal counsel before making decisions based on the information provided herein. In compliance with personal data protection regulations, REYES ABOGADOS ASOCIADOS S.A. invites you to contact us if you do not wish to continue receiving our legal updates.