DIAN clarifies tax treatment of pets in Colombia

The Colombian Tax and Customs Directorate (DIAN) has clarified that companion animals, such as dogs and cats, must be included in a taxpayer's gross assets for income tax purposes, provided they have economic value and are under the taxpayer's fiscal possession at the close of the taxable year.

According to Concept 100208192-1997, the classification of animals as sentient beings or family members does not automatically exempt them from tax regulations applicable to assets that can be valued in money. The ruling is based on the Tax Statute, which defines gross assets as the set of goods and rights appraisable in money held by a taxpayer.

For pets acquired through purchase, the fiscal cost—including the acquisition price and directly attributable costs until the animal is available for its intended use—serves as the valuation basis. However, subsequent care expenses cannot be automatically incorporated into the fiscal cost. In cases of free acquisitions, such as adoptions, the cost may be zero, though each case requires individual review.