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Colombia Clarifies Interest on Loans for the Acquisition of Shares is Not Deductible

|Approved Changes|Colombia
Colombia

The Colombian Tax Authority (DIAN) recently issued a ruling concerning whether interest payments on loans obtained for the acquisition of shares are deductible. The ruling notes that expenses are generally deductible as long as they have a cause-effect relationship with income-producing activities and are necessary and proportionate. In respect of interest payments on loans for the acquisition of shares, DIAN does not consider that such payments meet those conditions and therefore the payment…

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