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V0916-15 25 March 2015 · SG de Fiscalidad Internacional Criterion in force
IRNR · asistencia técnica

Technical assistance services to a Colombian company may be treated as royalties

A Spanish company enquires about invoicing technical assistance (digital photogrammetric restitution) to a Colombian company. The DGT determines that these services are considered royalties under the Spain-Colombia Convention and examines their treatment in IRNR and VAT.

The question raised

The consultant raises the following questions when issuing the corresponding invoice:

The DGT's ruling

Technical assistance services provided to a company resident in Colombia are considered royalties under Article 12 of the Spanish-Colombian Convention. Colombia may tax these incomes at a maximum rate of 10% of the gross amount, and Spain must apply the international double taxation deduction. Regarding VAT, the provision shall not be subject to the tax if the recipient is not established in Spanish territory.

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