Next August 3 marks the end of one of the periods set for updating the Ultimate Beneficial Owners Registry (RUB) when there are changes to previously reported information. This deadline applies regardless of the last digit of the NIT.

For many organizations, the RUB has remained associated with the initial report filed some years ago. However, the obligation goes beyond the initial submission of information. The registry must be kept up to date whenever the ultimate beneficial owners or the organization’s ownership and control structure change.

The purpose of the RUB is to identify the individuals who, directly or indirectly, own, control or exercise effective control over a legal entity or an unincorporated structure. To that end, the regulation sets out specific criteria, including holding 5% or more of the capital, voting rights or economic benefits, as well as exercising control through other mechanisms.

In practice, before each update period it is advisable to review whether any of the following situations occurred in recent months:

1. partners or shareholders joining or leaving;
2. changes in ownership percentages;
3. corporate reorganizations;
4. changes in the person exercising effective control;
5. mergers, spin-offs or corporate reorganization processes that could change the identification of the ultimate beneficial owner.

The review should not be limited to the RUB form. It is also advisable to confirm that the information is consistent with the shareholders’ book, corporate documents, the RUT and the other corporate records supporting the organization’s ownership structure.

Another aspect that often goes unnoticed is that entities required to file the RUB must have obligation code 55 —Ultimate beneficial owner reporting party— registered in their RUT, a requirement for accessing the corresponding service within DIAN’s information systems.

Failure to comply with the obligation to report, update or provide accurate information may result in the penalties set out in the Tax Code, in addition to measures related to failing to update the registry or providing incorrect information.

The period ending on August 3 is an opportunity to confirm that the information reported still reflects the organization’s actual situation and that the changes made in recent months were promptly incorporated into the Ultimate Beneficial Owners Registry.

Óscar Andrés Torres Puentes

Partner – HUB Accountants
otorres@hublegal.com.co

Merlys Manjarres
Accounting Director – HUB Accountants
memanjarres@hubaccountants.com.co