The Colombian government has issued Decree 627, which amends the provision of the Tax Code regarding the determination of non-deductible interest as per thin capitalization rules. Under the previous provision, the portion of non-deductible interest was determined by dividing the excess debt by the maximum amount of debt. Under the amended provision, the determination is based on dividing the excess debt by the average amount of debt.
The Decree was issued March 26th, 2014, and applies from the…