Colombian Tax Authority Reconsiders Position on Reinvestment Condition for 0% Withholding Tax on Dividends Paid out of Untaxed Profits to Spanish Residents

The Colombian tax authority (DIAN) has released Ruling (Concepto) No. 015313 int 1605 of 1 September 2026, which reconsiders a 2012 legal interpretation regarding the 2005 Colombia-Spain tax treaty, specifically focusing on the rules for dividends distributed to Spanish residents. Under Colombian domestic tax law in force at the time the treaty was signed (paragraph 1 of Article 245 of the Tax Code), dividends distributed to non-residents out of profits that were not taxed at the level of th…