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Tax Statute (Estatuto Tributario)

Decree 624 of 1989. DIAN compilation in Spanish, plus Luque Law’s unofficial U.S. English desk translation. Not a gazette; confirm the official Spanish text.

Spanish is the DIAN compilation. English is Luque Law’s unofficial U.S. desk translation, not a gazette.

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Official sourceDecreto 624 de 1989 — Compilación Jurídica DIAN

→ Art. 89

Art. 89

Source as compiled: D. 2053/74 Art. 17 Gross income is composed of the sum of net income realized in the taxable year that has not been expressly exempted under articles 36 through 57, and 300 through 305. When the realization of such income entails the existence of costs, gross income is composed of the sum of such income less the costs attributable thereto.

Translator’s notes

Unofficial desk rendering (U.S. English). Notes flag ambiguity and the U.K./OECD equivalent a common-lawyer might expect.

renta bruta → gross income

U.K./OECD: total income

Colombian renta bruta is a statutory step in the income computation (ingresos netos minus costs). It is not identical to U.S. gross income under IRC § 61, which includes all income from whatever source. The Colombian concept starts with ingresos netos (net receipts, after returns of capital in some cases) and subtracts costs of goods sold or direct costs. U.S. practitioners should not assume the same base or the same exclusions apply.

ingresos netos → net income

U.K./OECD: net receipts

Here, ingresos netos means gross receipts after certain adjustments (e.g., returns of capital, non-taxable recoveries). It is not net income in the U.S. sense (gross income minus deductions). The statute uses ingresos netos as the starting point, then subtracts costs to reach renta bruta, then subtracts deductions to reach renta líquida. Confusion with U.S. 'net income' (the bottom line) is a serious risk.

realizados → realized

U.K./OECD: realised

Colombian realization follows accrual or cash method rules depending on the taxpayer's accounting system (arts. 27–28). Do not import U.S. realization doctrine (Cottage Savings, etc.) without checking the Colombian provisions.

año o período gravable → taxable year

U.K./OECD: year or period of assessment

Default is the calendar year unless the taxpayer has DIAN authorization for a different period (art. 10).

exceptuados → exempted

U.K./OECD: exempt

Articles 36–57 list exempt income (rentas exentas) and non-taxable income (ingresos no constitutivos de renta). Articles 300–305 cover occasional gains. The statute uses exceptuados to mean 'carved out' or 'excluded'; it is not a U.S. tax-exempt organization concept.

costos → costs

U.K./OECD: costs

Colombian costos are direct costs attributable to the production of income (cost of goods sold, direct production costs). They are subtracted to reach gross income. Deducciones (deductions, arts. 107 ff.) are subtracted later to reach taxable income. U.S. practitioners accustomed to a single 'deductions' category should note the two-step structure.

imputables → attributable

U.K./OECD: attributable

Costs must be directly attributable to the income realized. The statute does not use 'allocable' in the U.S. regulatory sense (Treas. Reg. § 1.861-8); Colombian rules are in arts. 62–63 and following.

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Tax Statute (Estatuto Tributario)

Art. 89

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