Tax Statute (Estatuto Tributario)

ARTICLE 288. ADJUSTMENTS FOR EXCHANGE-RATE DIFFERENCES. Article added by Article 123 of Law 1819 of 2016. The new text is as follows: Income, costs, deductions, assets, and liabilities denominated in foreign currency shall be measured at the time of their initial recognition at the representative market rate.

Fluctuations in statement-of-financial-position items—assets and liabilities—expressed in foreign currency shall have no tax effect until the time of disposal or payment received in the case of assets, or settlement or partial payment in the case of liabilities.

In the events of disposal or payment received, or settlement or partial payment, as the case may be, recognition shall occur at the representative market rate of the initial recognition.

The taxable income, cost, or deductible expense in the payments received or payments made mentioned above shall correspond to that generated by the difference between the representative market rate at initial recognition and the representative market rate at the time of the payment received or payment made.