How Was the DIAN Created?
The Colombian Tax and Customs Authority (DIAN, for the Spanish original), an entity under the Ministry of Finance and Public Credit, was established as a Special Administrative Unit by Decree 2117 of 1992 when the National Tax Directorate (DIN, for the Spanish original) merged with the National Customs Directorate (DAN, for the Spanish original) on June 1, 1993.
A new restructuring was carried out through Decree 1071 of 1999, and the Colombian Tax and Customs Authority (DIAN) Special Administrative Unit was organized. Similarly, the structure of the Colombian Tax and Customs Authority Administrative Unit was modified on October 22, 2008, through Decree 4048. Decree 4048 of 2008, related to the structure of the Colombian Tax and Customs Authority Special Administrative Unit was modified and supplemented on April 26, 2011, through Decree 1321. The structure of the Colombian Tax and Customs Authority Special Administrative unit was partially modified on July 17, 2015, through Decree 1292. Decree 1742 of 2020 was issued in 2020, modifying the structure of the Colombian Tax and Customs Authority Special Administrative Unit, which remains in effect to date.
What Is its Legal Nature?
The DIAN is organized as a national Special Administrative Unit with an eminently technical and specialized nature. It has status as a legal entity, administrative and budgetary autonomy, and its own assets, attached to the Ministry of Finance and Public Credit.
What Is its Jurisdiction?
The jurisdiction of the Colombian Tax and Customs Authority Special Administrative Unit covers the entire national territory, and its main headquarters is located in the city of Bogotá, D.C.
The DIAN is present in the following cities and municipalities of Colombia, distributed as follows:
Sectional Tax and Customs Directorate (30) | Sectional Customs Directorate (6) | Sectional Tax Directorate (7) | Delegated Sectional Tax and Customs Directorate (7) | Points of Contact |
Arauca, Armenia, Barrancabermeja, Bucaramanga, Buenaventura, Florencia, Girardot, Ibagué, Ipiales, Leticia, Maicao, Manizales, Montería Neiva, Palmira, Yopal, Pasto, Pereira, Popayán, Riohacha, Santa Marta, San Andrés, Sincelejo, Sogamoso, Tunja, Tuluá, Urabá, Quibdó, Valledupar, Villavicencio. | Bogotá, Barranquilla, Cali, Cartagena, Cúcuta, Medellín. | Bogotá, Barranquilla, Cali, Cartagena, Cúcuta, Medellín, Large Taxpayers in Bogotá. | Mitú, San José del Guaviare, Puerto Asís, Tumaco, Puerto Carreño, Inírida, Pamplona. | Pitalito, Ocaña, Magangué, La Dorada, La Estrella, Barzal and Buga, Cali Centro, Cali Sur, in Bogotá: Bogotá Customs, Américas, Bima, Bosa, Centro, Calle 75, Carrera 30, Suba. |
What Is the Entity's Purpose?
The Colombian Tax and Customs Authority (DIAN) Special Administrative Unit aims to help guarantee the fiscal security of the Colombian State and protect the national economic public order by managing and controlling proper compliance with tax, customs, and foreign exchange obligations, exploitation rights and administration expenses on games of chance and gambling operated by public entities on a national level, as well as to facilitate foreign trade operations under equal, transparent, and legal conditions.
How Is its Equity Structured?
It consists of the assets it owns and those acquired by any means or subsequently assigned to it.
What Is the Purpose of the DIAN?
To help guarantee the fiscal security of the Colombian State and protect the national economic public order by managing and controlling proper compliance with tax, customs, and foreign exchange obligations, exploitation rights and administration expenses on games of chance and gambling operated by public entities on a national level, as well as to facilitate foreign trade operations under equal, transparent, and legal conditions.
Who Is the Legal Representative of the DIAN?
The Director General is responsible for the legal representation of the DIAN. They may delegate it according to the current legal regulations. The position of Director General is freely appointed and removed. Consequently, it is filled through ordinary appointment by the President of the Republic.
What Authority Does the DIAN Have?
Decree 1742 of 2020, Art. 1 on Authority and Art. 3 on Functions, respectively.
ARTICLE 1. Authority. The Colombian Tax and Customs Authority (DIAN) Special Administrative Unit is responsible for the following functions:
Managing income and complementary taxes, the national stamp tax and sales tax; customs duties and other internal national taxes whose competence is not assigned to other State entities, whether they are internal taxes or foreign trade taxes; and directing and managing customs, including the apprehension, confiscation or declaration of abandonment of merchandise in favor of the Nation and its management and disposal.
Moreover, the DIAN is responsible for controlling and monitoring compliance with the foreign exchange regime with respect to importing and exporting goods and services, associated expenses, financing of imports and exports in foreign currency, and under-invoicing and over-invoicing of these operations.
Tax management includes collection, inspection, assessment, dispute resolution, enforcement, refunds, imposition of penalties, and all other aspects related to compliance with tax obligations.
Managing customs duties and other foreign trade taxes includes their collection, inspection, liquidation, discussion, enforcement, penalties, and all other aspects related to compliance with customs obligations. Directing and managing customs includes the provision of services and support for foreign trade operations and the apprehension, confiscation, or declaration of abandonment of merchandise in favor of the Nation, as well as its management, control, and disposal.
The DIAN is responsible for acting as a doctrinal and statistical authority in tax, customs, and foreign exchange control matters, in relation to issues within its jurisdiction.
The Colombian Tax and Customs Authority Special Administrative Unit will carry out all necessary administrative actions to adhere to its assigned functions.
What Are the DIAN's Functions?
Decree 1742 of 2020, Art. 1 on Authority and Art. 3 on Functions, respectively.
Decree 4048 of 2008: Article 3: GENERAL FUNCTIONS. The DIAN is responsible for performing the following functions:
1. Managing income and complementary taxes, the national stamp tax and sales tax; customs duties and foreign trade, as well as other internal national taxes whose competence is not assigned to other State entities, whether they are internal taxes or foreign trade taxes, in relation to collection, auditing, control, enforcement, penalties, settlement, dispute, collection, refund, and sanctions;
2. Directing and managing customs operations and disposing of merchandise seized, confiscated, or abandoned in favor of the Nation;
3. Recognizing and paying rewards and shares in money or in kind for the effective collaboration of third parties in controlling smuggling, avoidance, and corruption;
4. Directing, managing, controlling, and monitoring compliance with tax, customs, and foreign exchange obligations related to importing and exporting goods and services, associated expenses, financing of imports and exports in foreign currency, and under-invoicing and over-invoicing of these operations on a national level, in accordance with the policies outlined in the macroeconomic program and the general policies adopted by the Ministry of Finance and Public Credit, and within the institutional management model;
5. Controlling and monitoring foreign exchange operations that are not under the jurisdiction of another entity;
6. Monitoring and controlling the activities of individuals who professionally engage in buying and selling foreign currencies;
7. Managing and supervising the armed devices that perform the functions of fiscal and customs police as support and assistance to the investigative and determination functions of the tax, customs, and foreign exchange enforcement departments, as well as exercising judicial police functions;
8. Entering into conventions with national or international public or private entities aimed at establishing strategic partnerships to fight tax, customs, and foreign exchange avoidance, smuggling, and delinquency;
9. Setting the prices to be charged for the sale of goods and services, as well as for extraordinary services;
10. Managing and controlling Special Import-Export Systems, Free Trade Zones, Special Economic Export Zones, and International Sales Companies;
Decree 1292 of 2015: ARTICLE 2. Clause 11 of Article 3 of Decree 4048 of 2008 is modified, which shall read as follows:
11. Interpreting and acting as a doctrinal and statistical authority in matters of national taxes, customs, and foreign exchange control for importing and exporting goods and services, associated expenses, financing imports and exports with foreign currency, and under-invoicing and over-invoicing of these operations;
12. Participating and providing input in the study and drafting of bills, decrees, or international agreements that address tax, customs, or exchange control issues;
13. Participating in the processes of entering into international agreements on tax, customs, and foreign exchange control, as well as those related to international trade in the same aspects;
14. Entering into paid or free conventions for the dissemination, assistance, strengthening of management, collection, control, inspection, discussion, and recovery of parafiscal contributions, taxes, fees, and contributions under the jurisdiction of other entities;
15. Performing judicial police functions, in accordance with legal regulations;
16. Designing, developing, and evaluating the Entity's internal control system, in the terms defined by the law;
17. Managing and allocating human, financial, physical, and knowledge resources, as well as overseeing the provision of general benefits within the Entity;
18. Compiling, updating, and disseminating regulations on national tax regimes, customs, foreign trade in matters within its competence, and exchange controls for importing and exporting goods and services, associated expenses, financing imports and exports with foreign currency, and under-invoicing and over-invoicing of these operations;
19. Carrying out the necessary administrative actions to comply with the functions within its competence;
20. Any others assigned by law.
What Processes Does the DIAN Carry Out?
Currently, the typology of processes adopted by DIAN is the following: strategic, mission-oriented, support, evaluation, and control.
Strategic Processes: Their purpose is to guide the entity to fulfill its mission, vision, policy, and objectives and to satisfy the needs of stakeholders (organization, person, or bundle) that have an interest in the entity.
Mission Processes: They are related to the rationale and responsibilities of the DIAN as a State entity, which is reflected in its mission, which includes helping to guarantee the fiscal security of the Colombian State and protect the national economic public order by managing and controlling proper compliance with tax, customs, and foreign exchange obligations, exploitation rights and administration expenses on games of chance and gambling operated by public entities on a national level, as well as to facilitate foreign trade operations under equal, transparent, and legal conditions.
Support Processes: They provide support for strategic, mission-critical, and measurement, analysis, and improvement processes.
Evaluation and Control Processes: They enable a measurement, feedback, and adjustment process, making sure the entity achieves the proposed deliverables. They include measurement, monitoring, and internal auditing processes, corrective and preventive actions, and are an integral part of strategic, support, and mission-critical processes.
What Are the Processes?
Strategic Processes | Mission Processes | Support Processes | Evaluation and Control Processes |
Corporate Intelligence | Customer Service | Human Resources Management | Disciplinary Investigation |
Collection |
Sales | Financial Resources |
Tax Control and Settlement |
Legal Management | IT Services | Internal Control |
Portfolio Management |
Mass Management | Physical Resources | |
Customs Operation |
For more information, see the following regulations:
