RESTRICTED
WORLD TRADE S/WPPS/W/7/Add.30
6June1997
ORGANIZATION
(97-2358)
Working Party onProfessional Services Original: Spanish
COMMUNICATION FROM COLOMBIA
Response totheQuestionnaire ontheAccountancy Sector
Thefollowing communication iscirculated attherequest ofColombia.
_______________
I. GENERAL
1. What aretheprofessional titles ofaccountants inyour country? Arethese professional
titles protected? Please specify how.
Theonlytitleispublic accountant (contador público).
Thetitleisprotected byLaws Nos.145of1960 and43of1990. Itisalsoprotected bythe
legislation toprotect thehigher education system inColombia.
2. How istheaccountancy sector regulated inyour country: bylaw, professional
self-regulation, acombination ofboth?
Bylaw.
3. Arethere anyprovisions toprotect company names, whether national orforeign, inyour
country?
Yes, theCommercial Code regulates theprotection ofnames ofcompanies registered with
theChamber ofCommerce. Forthatpurpose, thename isregistered aftertheChamber ofCommerce
haschecked thatitisnotthesame asthatofapreviously registered company orestablishment. The
righttothename isacquired through firstuse.However, theparties concerned mayrequest ittobe
deposited withtheIndustrial Property Division oftheSupervisory Authority forIndustry andTrade
(Superintendencia deIndustria yComercio). Thecompanies regulations under theCommercial Code
givethesame rightofprotection tothenames ofnational andforeign companies.
4. What aretheprofessional bodies inyour country? Aretheyrecognized bylawasa
regulatory ordisciplinary body fortheaccountancy profession inyour country, orarethese
functions fulfilled byother institutions (please specify)?
Thereare31accountancybodiesregisteredwiththeCentralBoardofAccountants(JuntaCentral
deContadores), noneofwhich actsasaregulatory ordisciplinary body fortheprofession.S/WPPS/W/7/Add.30
Page2
Theregulatory anddisciplinary bodies fortheprofession recognized bylaware:theCentral
Board ofAccountants, thePublic Accounting Technical Council (Consejo Técnico delaContaduría
Pública), theStanding Committee forEvaluation ofAccounting Standards (Consejo Permanente para
laEvaluación delasNormas delaContabilidad), andtheNational Accounts Office (Contaduría General
delaNación). Other Statebodies setstandards, rulesorguidelines forentities under theirsupervision
andcontrol.
5. Howmany members dothese professional bodies have? What istheestimated proportion
ofthose:
TheCentral Board ofAccountants haseleven members, asfollows:
(a) TheMinister ofEducation orhisalternate;
(b) theSecurities Supervisor;
(c) theSupervisor ofCompanies orhisalternate;
(d) theSupervisor ofBanks orhisalternate;
(e) theSupervisor ofHealth orhisalternate;
(f) theNational Accountant General orhisalternate;
(g) theDirector oftheDepartment ofTaxation andCustoms orhisalternate;
(h) arepresentative oftheColombian Association ofUniversities (Asociación Colombiana
deUniversidades) oritssuccessor, withhisalternate;
(i) arepresentative oftheColombian Association ofFaculties ofPublic Accounting
(Asociación Colombiana deFacultades deContaduría Pública -ASFACOP) orits
successor, withhisalternate;
(j) Tworepresentatives ofpublic accountants withtheiralternates.
Four ofthemembers arefrom theprivate sector, theremainder from thepublic sector.
ThePublic Accounting Technical Council haseight members, asfollows:
(a) Arepresentative oftheMinistry ofEducation;
(b) arepresentative oftheSupervisor ofCompanies;
(c) arepresentative oftheBanking Supervisor;
(d) aRepresentative oftheSecurities Supervisor;
(e) tworepresentatives oftheDeans ofFaculties ofAccounting inthecountry;
(f) tworepresentatives ofpublic accountants.S/WPPS/W/7/Add.30
Page3
Four ofthese members arefrom theprivate sector, theremainder from thepublic sector.
TheStanding Committee forEvaluation ofAccounting Standards hasninemembers, asfollows:
(a) TheMinister ofEconomic Development, orhisalternate, whopresides;
(b) theMinister ofFinance orhisalternate;
(c) theBanking Supervisor orhisalternate;
(d) theSupervisor ofCompanies orhisalternate;
(e) theSecurities Supervisor orhisdelegate;
(f) thePresident oftheCentral Board ofAccounting orhisalternate;
(g) therepresentative oftheAssociation ofFaculties ofPublic Accounting (ASFACOP);
(h) apublic accountant nominated bytheMinistry ofEconomic Development onmatters
submitted bybusiness associations andthestock exchange;
(i) apublic accountant nominated bytheMinistry ofEconomic Development onthe
recommendation oftheassociations ofpublic accountants.
Three ofthemembers arefrom theprivate sector, theremainder from thepublic sector.
6. What isthescope ofactivities regularly practised byaccountants inyour country?
Thefollowing activities areregularly practised byaccountants inColombia:
- Organization, review andcontrol ofaccounts;
- financial andcostaccounting;
- certification andreports onfinancial statements;
- certification based onbooks ofaccount;
- taxaudit;
- external audit;
- internal audit inalltypes ofcompany, operational, management andsystems;
- comprehensive audit;
- financial audit;
- management audit;
- compliance audit;S/WPPS/W/7/Add.30
Page4
- audit ofinternal controls;
- public accounting;
- public sector audit;
- analysis andevaluation ofinvestment alternatives;
- taxadvice;
- management consultancy;
- accounting advice andthelike;
- visits topublic entities ontechnical accounting matters;
- consulting;
- expert witness inaccounting;
- deanoffaculties ofpublic accounting;
- allother activities related totheprofession ofpublic accountancy.
7. Which ofthese activities areregulated inyour country?
All.
8. Which ofthese activities arereserved bylawtoaccountants, shared byaccountants with
other professions (please specify), orevenforbidden toaccountants inyourcountry, e.g.byfull
prohibition orbynotallowing cumulation ofcertain activities which areconsidered incompatible
ormutually exclusive?
Theactivities reserved bylawtoaccountants are:
(a) Intheprivate sector:
- Byvirtue oftheoffice:
- taxauditor orexternal auditor forallclasses ofcompany where
required bylaworthesocial contract;
- chief accountant orequivalent andinternal auditor;
- expert intechnical accounting disputes;
- deanoffaculties ofpublic accounting;
- expert witness inaccounting totheauthorities intax-related matters.S/WPPS/W/7/Add.30
Page5
- Bythenature ofthematter:
- certifying andreporting ongeneral balances andother financial
statements inthefollowing cases:
- when theyareintended toprovide information onmergers and
restructuring ofcompanies, compositions andinsolvencies;
- companies whose gross turnover intheyearimmediately
preceding and/or whose totalassets at31December ofthat
yeararetheequivalent of5,000 times theminimum salary or
more;
- natural orlegalpersons, defactoordejure,seeking financing
of3,000 times theminimum salary ormore from anyform
oflending institution;
- companies, whose shares arelisted onthestock exchange,
offering shares forsaletothepublic and/or applying fora
stock exchange listing;
- when theyarepartoftheinformation included ininvestment
proposals equivalent to10,000 minimum times theminimum
wage ormore;
- when theyaresubmitted bybidders inopen competitive
bidding bylegal entities, when theamount ofthetender is
2,000 times theminimum wage ormore.
(b) Inthepublic sector:
- government employees orcivil servants whose work involves technical
accounting activities;
- inspectors intechnical accounting matters intheSupervisory Authority for
Banks, Social Security andCompanies, Dancoop, theStock Exchange
Supervisory Authority andtheSpecial Administrative Unit-Department of
Taxation andCustoms, ortheirsuccessor bodies;
- National Accountant-General.
Inparticular, public trustintheprofessional exercise ofpublic accountancy isexclusively
reserved topublic accountants.
Disqualification from theoffice ofpublic accountant
- When apublic accountant hasacted asagovernment officer andaspartofhisofficial duties
hadproposed, reported ordetermined aparticular matter, hemaynotrecommend orpersonally
advise fororagainst theinterested parties inthatmatter, untilsixmonths afterhehasleftthe
post.S/WPPS/W/7/Add.30
Page6
- Apublic accountant maynotprovide professional services asadviser, employee orcontractor
tonatural orlegal persons which hehasaudited orinvestigated asagovernment officer or
taxinspector untiloneyearafterthedateofleaving thepost.
- When apublic accountant isrequested toactasexternal auditor, taxinspector, reporting
accountant orarbitrator inadispute ofanaccounting nature, hemaynotaccept suchan
appointment ifheisrelated to,connected withorhaseconomic orother linkswithanyofthe
parties which might impair hisindependence ortheobjectivity ofhisjudgements oractions.
- When apublic accountant hasbeenemployed byacompany hemaynotaccept appointment
asexternal auditor ortaxinspector ofthesame company oritssubsidiaries and/or branches
untilsixmonths afterhehasleftthatemployment.
- Apublic accountant working inthepublic sector maybesubject toadditional disqualifications.
II. QUALIFICATION REQUIREMENTS
9. What arethequalification requirements forthese activities inyour country interms of
university/higher education degree, practice andprofessional exam? Specify thenumber ofyears
required foreachelement, andthedifferences according totheactivities (audit, insolvency, tax,
etc.)covered bythequalification.
Thequalification requirement isaminimum oftensemesters full-time education inthefaculty
ofpublic accounting ofaColombian university accredited bytheGovernment andtohaveobtained
adegree. Toobtain apractising certificate, oneyear'saccounting practice isrequired. There isno
professional examination. There arenodifferences according totheactivities.
10. Arethere anypre-conditions tomeet tostart theprofessional education: minimum age,
particular diploma ortitle, prior education, registration withaprofessional body, payment of
afee,other (please specify)?
Thepreconditions forstarting professional education inpublic accounting are:possession of
acertificate ordiploma attesting tosuccess inobtaining ahigh-school diploma (bachillerato), apass
intheexamination oftheColombian Institute forthePromotion ofHigher Education (Instituto
Colombiano paraelFomento delaEducación Superior) andpassing thespecific testsorinterviews
required byeachuniversity.
11. What arethesubjects tobecovered bytheeducation: accounting, audit, tax,general
law,economics, ethics, information technology, other (please specify)?
There isnostandard curriculum. Eachuniversity mayestablish itsownprogramme ofstudies.
However, thesubjects generally studied fallintothefollowing areas:
- Economics;
- mathematics andstatistic;
- law;
- humanities;
- administration;S/WPPS/W/7/Add.30
Page7
- accounting;
- audit, control andtaxinvestigation;
- computerized accounting.
III. TECHNICAL STANDARDS AND ETHICS
12. Inrelation towhich activities donational standards exist(audit, accounting, insolvency,
other)? Please specify their main policy objectives.
There arenational standards foraccounting, taxinspections andauditing.
Foraccounting. there arestandards governing theconceptual framework, technical standards
andstandards forbooks andrecords. Thirteen Plans ofAccounts havebeenestablished forvarious
types ofactivity bysector.
There arestandards fortaxinspection relating totheircompulsory nature andthemanner in
which theyarecarried out.
Forauditing, therearegenerally accepted standards, standards forworking papers andauditing
methods.
Thegeneral objectives ofthepolicy adopted inestablishing national standards aretosafeguard
thecompany, achieve thepurposes oftheState andsafeguard theinterests oftheState andsociety
atlarge, byendorsing generally accepted accounting concepts andprinciples onwhich theaccounting
information isbased.
13. Which body orinstitution develops these standards andmonitors their implementation?
What aretheconsequences ofabreach ofthestandards (fortheprofession, forclients, etc.)?
Thestandard-setting bodies aretheCongress oftheRepublic, theNational Government inthe
exercise ofitsregulatory powers andthebodies authorized bylawforthepurpose: thePublic
Accounting Technical Committee, which issues rulings ontheapplication ofstandards andprofessional
conduct andtheStanding Committee fortheEvaluation ofAccounting Standards.
Thebodies which supervise theapplication ofnational technical andethical standards arethe
Central Board ofAccountants, which isatechnical andethical disciplinary tribunal, government
supervisory, control andmonitoring bodies suchastheSupervisory Authorities, theDepartment of
Taxation andCustoms andtaxinspectors.
Breach ofsuchstandards byaccountants hasfourtypesofconsequences: disciplinary, financial,
professional, penal. AswellastheCentral Board ofAccountants, allthesupervisory, control and
monitoring bodies mayapply sanctions, within thelimits oftheirauthority andtheseriousness ofthe
breach.
TheCentral Board ofAccountants hasthepower toapply thefollowing sanctions:
(a) Reprimand inthecaseofminor breaches;
(b) successive finesofuptofivetimes theminimum wage ineachcase;S/WPPS/W/7/Add.30
Page8
(c) suspension ofregistration;
(d) cancellation ofregistration.
Breach ofstandards byclients hasconsequences ofafinancial, professional and/or criminal
nature, depending ontheseriousness ofthebreach.
14. Aretheinternational standards developed byIFAC (International Education Standards
andGuidelines, International Standards onAuditing) andIASC (International Accounting
Standards) recognized orusedinyourcountry? Ifyes,please explain how. Ifno,please explain
why.
Theinternational standards developed byIFAC andIASC arerecognized inColombia. The
legislationadoptedinthecountrytakestheseinternationalstandardsintoaccount,generallyincorporating
theirprinciples, adapting them tonational institutional conditions andaccounting practices.
InColombia, theCongress oftheRepublic andtheNational Government areresponsible for
setting accounting regulations andstandards. Ethical standards, accounting standards andplans of
accounts forthevarious economic sectors largely follow theprovisions oftheinternational standards.
However, theinternational standards developed byIFAC andtheIASC havenolegalforce
sincetherearenointernational treaties tomake theiradoption mandatory. Consequently, theaccounting
standards generally accepted inthecountry arethose setdown bylaw,although thePublic Accounting
Technical Committee additionally accepts theIFAC standards.
BoththePublicAccountingTechnicalCommitteeandtheStandingCommitteefortheEvaluation
ofAccounting Standards draw oninternational standards informulating theconcepts onwhich their
statements arebased.
15. Inrelation towhich activities does aparticular ethical code exist (audit, accounting,
insolvency, other)? Please specify itsmain policy objectives.
InColombia there isaCode ofProfessional Ethics which governs thesocial andprofessional
framework fortheaccounting profession, auditors andthetaxinspectorate, laiddown inLaw43of
1990 which supplements Law145of1960, aswellasStatement No.3ofthePublic Accounting
Technical Committee.
Theprincipal objectives ofthepolicy applied through theCode ofProfessional Ethics areas
follows:
Theessential basisforthedevelopment ofethical standards inpublic accounting inColombia
iscontained inthefollowing statements ofprinciples:
Public Accounting isaprofession whose purpose istosatisfy theneeds ofsociety bymeasuring,
evaluating, organizing, analysing andinterpreting financial information ofcompanies andindividuals
andbypreparing reports onthecorresponding financial position, onwhich entrepreneurs, investors,
creditors, interested thirdparties andtheState canbasedecisions about thefuture ofsucheconomic
entities.
Theexercise ofpublic accounting implies asocial function especially through thepublic trust
which isgranted forthebenefit oforder andsecurity ofeconomic relations between theState and
individuals andbetween individuals.S/WPPS/W/7/Add.30
Page9
Itisanactofpublic trustwhen, asarepository ofpublic confidence, thepublic accountant
addshissignature andpractising certificate toadocument inwhich certain economic factsarecertified.
Thiscertification willform anintegral partofthematter examined.
Thepublic accountant isdirectly andactively involved inthelifeofpublic andprivate entities.
Hehasadutytoprotect theeconomic interests ofthecommunity, bywhich ismeant notonlynatural
andlegalpersons directly linked totheenterprise, butsociety ingeneral and,ofcourse, theState.
Asense ofmorality, professional skillandindependence ofmind arethespiritual hallmarks
ofthepublic accountant.
Inapplying thetechniques andmethods mostsuited toeachtypeofeconomic entity andtype
ofwork entrusted tohim,thepublic accountant must always observe thefollowing basic principles
ofprofessional ethics:
- Integrity;
- objectivity;
- independence;
- responsibility;
- confidentiality;
- compliance withlegislation;
- professional competence andkeeping uptodate;
- communication andcollaboration;
- respect between colleagues;
- ethical conduct.
Theabove basic principles must beunfailingly applied bythepublic accountant, notmatter
howsimple orcomplex thetask.
Thepublic accountant isanaccessory ofjustice inthose cases laiddown bylaw. Assuch,
thepublic accountant shallfulfil hisdutyinaccordance withthehighesteem inwhich hisprofession
isheld, theimportance ofthetaskentrusted tohimbysociety asanexpert andthesearch fortruth
inatotally objective manner.
16. Which body orinstitution develops thiscode andmonitors itsimplementation? What
aretheconsequences incaseofbreach oftheethical codebyaprofessional orafirm?
TheCongress oftheRepublic ofColombia established theCode ofProfessional Ethics inLaw
No.43of1990. TheCentral Board ofAccountants isthebody which monitors itsimplementation.S/WPPS/W/7/Add.30
Page10
Thedisciplinary consequences ofabreach ofprofessional ethics are:
(a) Reprimand inthecaseofminor breaches;
(b) successive finesofuptofivetimes theminimum wage ineachcase;
(c) suspension ofregistration;
(d) cancellation ofregistration.
Theseareappliedinaccordancewiththeseriousoftheoffence,withoutprejudicetothefinancial,
professional and/or criminal sanctions laiddown bynational legislation towhich theoffence maybe
subject.
Companies orfirms ofpublic accountants arealsosubject toinspection andsupervision by
theCentral Board ofAccountants and,where thereisabreach oftheEthical Code, theymaybepunished
bythatbody intheform ofareprimand orafine,without prejudice toanylegalsanctions imposed
byother competent bodies. However, restriction oftheoperating permit, inthecaseofcompanies,
isunder thejurisdiction oftheSupervisory Authority forCompanies.
17. Arethere restrictions onmarketing, solicitation, advertising?
Formarketing, Law43of1990 laysdown thatnopublic accountant mayunfairly acquire
colleagues 'clients. Moreover, anypublic accountant whoactsforaclient onbehalf ofanother public
accountant mustdecline anyformofremuneration notexpressly authorized bythepublic accountant
onwhose behalf heisworking. Apublic accountant maynotoffer work toemployees orpartners
ofother public accountants. However, hemayfreely contract withsuchpersons whoseekemployment
oftheirowninitiative.
Onsolicitation, Law43of1990specifically states thatcompetition islegitimate intheprovision
ofprofessional services byapublic accountant orcompany ofpublic accountants insofarasitisbased
onthequality oftheservices offered. Itwillnotbelawful orfairwhen theaward ofthework isbased
onsubsequent reductions intheprice originally quoted ortheofferofother freeservices inaddition
totheonesquoted.
Onadvertising, Law 43of1990 laysdown thatitmust berestrained andprofessional
advertisements shallcontain thename orcompany name, address, telephone, special services, andthe
respective qualifications orlicences. Inaddition, apublic accountant shallnotinanywaycause the
publicationthroughthepress,radio,televisionoranyinformationmedia,ofnoticesorarticlescontaining
factswhich areunproven orwhich arepresented insuchawayastomislead, either through thecontent
orthequalifications claimed orwhich might denigrate ordiscredit thework ofother professionals.
18. Arethere restrictions onfee-setting (minimum/maximum levels imposed, indicative scale,
etc.)?
There arenorestrictions onfee-setting. Law43of1990 laysdown thatapublic accountant
shallsethisfeesinaccordance withhisknowledge and/or technical skill, based ontheimportance
andnature ofeachofthetasks which heisrequired tocarry out,butalways withtheprior written
agreement between thepublic accountant andtheclient.S/WPPS/W/7/Add.30
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IV. LICENSING REQUIREMENTS AND PROCEDURES
19. Apart from thequalification requirements, what arethelicensing requirements for
individuals inyour country?
Inorder toobtain apractising certificate, thefollowing requirements mustbemet,inaddition
tohaving theuniversity degree inpublic accounting:
- Proven experience ofnotlessthan oneyear inaccounting related activities,
simultaneously withorsubsequent touniversity studies, inColombian territory;
- registration withtheCentral Board ofAccountants;
- inaddition, inthecaseofforeign professionals, withthetitleofpublic accountant or
equivalent, obtained fromaforeign institution anddulyrecognized inColombia, three
years continuous residence inthecountry, prior totheapplication forregistration.
20. Arethere anyconditions imposed tobeeligible formembership oftherelevant professional
body(ies)? Please specify.
There isnosingle association ofpublic accountants. There arevarious associations. There
arenobarriers totheexercise oftheprofession which would require association. Inanycase, the
National Constitution provides forassociations which iswhythere isadraftlawunder consideration
which seeks toorganize asingle mandatory nationwide association ofpublic accountants. Suchabody
would work ontheprinciple ofdecentralization byestablishing branches inalldepartmental capitals.
21. Arethere specific licensing requirements forprofessional firms?
Licensing ofprofessional firms isprimarily subject totherules forcompanies under the
Commercial Code.
Secondly, aprofessional firmintheformofacompany ofpublic accountants isalegalperson
whose principal objective istoprovide services appropriate tosuchcompanies andaccountancy related
activities ingeneral, aslaiddown inLaw43of1990, through partners andemployees, orunder contracts
withother public accountants. Arequirement forthegranting ofalicence (registration withtheCentral
Board) isthatatleast80percentofthepartners inafirmofpublic accountants must bepublic
accountants, andtheirlegalrepresentative mustbeapublic accountant when allthepartners arepublic
accountants.
Forthepurposes ofthemonitoring towhich theyaresubject, companies ofpublic accountants
mustberegistered withtheCentral Board ofAccountants, onapplication bythelegalrepresentative
ofthecompany, within thirty (30)daysoftheirformation, without prejudice toanyinspection or
monitoring byanyother State bodies.
22. Cananapplication forlicensing befiledatanytimeoftheyearorarethere specific dates
torespect? How longdoesittaketocomplete thewhole licensing procedure? Please specify in
caseofdifferences between individuals andfirms.
Applications forpractising certificates byindividuals (natural persons) maybesubmitted to
theCentral Board ofAccountants atanytime.
Thetimerequired forprocessing suchapplications bytheBoard istwomonths.S/WPPS/W/7/Add.30
Page12
Applications forregistration byfirms ofpublic accountants mayalsobesubmitted totheBoard
atanytime.
Thetimerequired forprocessing suchapplications isonemonth.
23. Arethere differences interms oflicensing requirements and/or procedures, according
totheactivities covered bythelicence (audit, insolvency, etc.)? Please specify. What kindof
documentation isnecessary/accepted? Aredocuments issued inother countries acceptable? Please
specify.
There arenodifferences interms oflicensing requirements and/or procedures according to
theactivities.
Thenecessary documentation isthedegree certificate andthecertificate ofpractical experience.
Documents issued inother countries arevalid provided that:
Theforeign degree, certified bytheColombian consul inthecountry concerned andtheMinistry
ofForeign Relations, isrecognized bytheColombian Institute forthePromotion ofHigher Education
(ICFES) andisaccompanied byacertificate ofpractical accounting experience ofatleastoneyear
obtained inColombian territory.
24. What happens when thelicensing conditions arenolonger respected bytheindividual
orthefirm?
Once theconditions fortheissueofalicence (practising certificate issued bytheCentral Board
ofAccountants) toapublic accountant havebeenmet,theyarenotreversible. Consequently, apublic
accountant mayexercise theprofession indefinitely, unless hecommits anoffence against public
accounting legislation inColombia. Intheparticular casewhere aforeign accountant hasobtained
hispractising certificate fromtheCentral Board ofAccountants, hekeeps hisrights topractise even
ifheceases toberesident.
Failure tocomply withtheconditions forthegranting ofapractising certificate (registration
withtheCentral Board ofAccountants) byfirms ofpublic accountants constitutes illegal exercise of
theprofession bythepartners, which willbesanctioned bycancellation oftheoperating licence, without
prejudice toanyotherlegalsanctions anddisciplinary investigation bytheCentral Board ofAccountants
intothepartners whoarepublic accountants. Thatapplies toprovision ofservices bypublic accountants
intheirownrightandaccountancy-related activities byfirms ofpublic accountants inwhich more than
20percentofthepartners arenotfullyqualified public accountants.
V. RECOGNITION OFQUALIFICATIONS
25. Arethere anypossibilities fortaking account ofqualifications acquired byforeign
professionals inanother country? Arethere bilateral agreements withother countries inthis
respect?
Yes.Qualifications acquired byforeign professionals inanother country aretaken intoaccount
provided thatthecountry oforigin ofthequalification isoneofthose withwhich Colombia hassigned
agreements formutual recognition ofqualifications inhigher education.
Thefollowing bilateral agreements formutual recognition ofqualifications inhigher education,
signed byColombia, areinforce: Argentina, Aruba, Bolivia, Brazil, Bulgaria, Costa Rica, Cuba,S/WPPS/W/7/Add.30
Page13
Czech Republic, Dominican Republic, Dutch Antilles, Ecuador, ElSalvador, Holy See,Mexico,
Netherlands, Nicaragua, Panama, Peru, Russia, Spain, Uruguay andVenezuela.
Where there arenobilateral agreements formutual recognition ofqualifications inhigher
education between Colombia andother countries, thequalification concerned willbevalidated through
theprocedures established bytheMinistry ofEducation andtheColombian Institute forthePromotion
ofHigher Education (ICFES). Theapplication issubmitted toICFES, together withtheprogramme
ofstudies oftheforeign university which awarded thequalification, forevaluation ofthesuitability
andrelevance oftheforeign university 'sprogramme byaColombian university.
26. Arethere anyautomatic recognition ormutual recognition agreements between your
professional bodies andtheir counterparts inother countries? Ifso,please specify themain
characteristics ofsuchagreements; ifnot,please explain why.
There arenoautomatic recognition ormutual recognition agreements between theCentral Board
ofAccountants, thePublic Accounting Technical Committee ortheStanding Committee forthe
Evaluation ofAccounting Standards andother counterpart professional bodies inother countries.
27. Where possibilities oftaking account offoreign qualifications exist, isafulllocal
examination oralocal training exceeding 12months required? Please specify. Isalocal licence
always necessary topractice aregulated accountancy activity? Please specify when thisisnot
thecase.
When thequalification ofpublic accountant orequivalent hasbeenrecognized, there isalso
arequirement foracertificate ofpractical accounting experience ofatleastoneyearobtained inthe
territory ofColombia, andthatcertificate mustbesigned bythelegalrepresentative oftheentity in
which thepractical experience wasobtained andbythetaxinspector orpublic accountant, asthecase
maybe.Bothdocuments mustbesubmitted totheCentral Board ofAccountants, inorder toobtain
thepractising certificate. Thecontents ofthecertificate ofpractical accounting experience islaiddown
inResolution 45of1997 oftheCentral Board ofAccountants.
Nofulllocalexamination isrequired.
Itisessential tohaveapractising certificate toexercise aregulated accounting activity in
Colombia.
28. What aretheaccreditation/licensing requirements imposed onforeign professionals
authorized topractice intheir home country? Maycertain (regulated) activities becarried out
onthebasis ofaforeign licence?
Theaccreditation/licensingrequirementsimposedonforeignprofessionalsauthorizedtopractice
intheirhome country arethesame asthose described inthereply toquestion No.19onobtaining
apractising certificate asapublic accountant.
Ifaforeigner doesnotmeettherequirements laiddown tocarry ontheprofession ofpublic
accountant inColombia, itisnotpossible tocarry onregulated activities onthebasisofaforeign licence.
InColombia itisnotpossible tocarry ontheprofession ofpublic accountant without obtaining
apractising certificate.S/WPPS/W/7/Add.30
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VI. REGULATIONSGOVERNINGTHEESTABLISHMENTOFACOMME RCIALPRESENCE
29. Arethere anyrestrictions ontheform under which onecanestablish (partnership,
incorporation, other)? Please specify.
Under theprinciple ofequality oftreatment established intheInternational Investment Statute,
discriminatory treatment cannot begiven orgranted toforeign investors asagainst national private
resident investors, norcanforeign investors betreated anylessfavourably thannational private resident
investors
30. Arethere restrictions onforeign direct investment andownership, including restrictions
applying tonotlocally qualified individuals orfirms? Please specify.
There arenorestrictions onforeign direct investment andownership whose purpose istocarry
onactivities regulated bytheCentral Board ofAccountants.
31. Isthere arequirement ofaminimum number orpercentage oflocaldirectors, managers
orstaff(please specify)?
Under theSubstantive Labour Code, anyemployer whoemploys more thantenemployees
must employ atleast90percentColombian nationals among ordinary employees andnotlessthan
80percentforqualified staff, experts, directors ormanagers. National employees whocarry onequal
work inthesame company orestablishment areentitled todemand equal payandconditions.
Inthecaseofafirmofpublic accountants whose partners are100percentpublic accountants,
thelegalrepresentative must beapublic accountant.
32. Arethere restrictions ontheability oflocally established firms todevelop international
relations (membership ofaninternational network, association withforeign firms, etc.)? Please
specify.
There arenosuchrestrictions
33. Istheuseofinternational orforeign names restricted forfirms?
International orforeign names arenotprohibited, butthefollowing maynotberegistered as
trademarks:
- Symbols which reproduce orimitate aprotected mark oforigin; which consist ofa
national orforeign geographical name which might cause confusion about theproducts
orservices towhich theyapply; orwhich, when used, might mislead thepublic as
totheorigin, source, quality orcharacteristics ofthegoods forwhich thetrademarks
areused;
- symbols which reproduce orimitate names, coats ofarms, flagsorother emblems or
acronyms; ornames orabbreviations ofanyofficially recognized State orany
international organization without permission ofthecompetent authority oftheState
orinternational organization inquestion. Inallcases, thesymbol inquestion may
onlyberegistered when itconstitutes anaccessory element ofthemaindistinguishing
mark.S/WPPS/W/7/Add.30
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VII. REGULATIONS GOVERNING THEENTRY AND TEMPORARY STAY OFNATURAL
PERSONS FOR THE PURPOSE OFSUPPLYING ACCOUNTANCY SERVICES
34. Istheentryandstayofprofessionalssubjecttolabourmarkettestsoranyotherrestrictions?
Please specify.
The entry andstayofprofessionals inColombia isprimarily subject tothelegislation on
migration policy laiddown inDecree 2268 of1995, andsecondly toLaw43of1990 which setsout
thenewregulatory framework fortheprofession ofpublic accountants inthecountry. Themostrelevant
elements ofthislegislation areasfollows:
A. Immigration provisions (Decree 2268 of1995):
Immigration planning isaimed atpreventing theentry offoreigners suchastocompromise
theemployment ofnational workers.
Immigration istobeencouraged inthefollowing circumstances:
- When byvirtue ofhisexperience, andpersonal professional qualifications, theforeigner
enters thecountry totakepartinpublic orprivate development activities orprogrammes
infarming, agro-industry, industry, fishing, forestry, tourism, education, social or
cultural activities, forwhich there arenotqualified nationals inthecountry or
insufficient tomeetthedemand;
- when theycontribute toscientific ortechnological progress;
- when theactivities tobecarried outgenerate employment fornational workers, increase
ordiversify export ofgoods andservices orareofbenefit tothecommunity;
- when located inareas ofthecountry where development isregarded bythenational
authorities asapriority ordesirable;
- When theybring incapital forinvestment inproductive activities ortosetuplarge
ormedium-sized companies tomeetneeds established bythenational authorities.
TheMinistryofForeignRelationsmayissueabusinessvisatobusinessmen,traders,industrialists
andexecutives whowishtoenter thecountry forjustified business purposes. Holders ofsuchvisas
maynotestablish residence inthecountry andtheiractivities maynotgenerate thepayment offees
orsalaries inColombia.
TheForeign Ministry mayalsoissue aresident 'svisafor,among other things, theexercise
ofanyofthefollowing activities: investor orprofessional whomeets therelevant requirements.
Inaddition, temporary, non-renewable, visasareissued forstaysoflessthan30days. These
arenormally issued toparticipants inconferences, technicians orexperts whoenter thecountry inthe
course oftheirpaidemployment. Thetemporary visamay, however, cover some ofthefollowing
cases:
- Professionals, technicians andexperts contracted bypublic orprivate enterprises or
establishments tocarry outtheirspecialist work. Insuchcases, thevisamaybeissued
foruptotwoyears;S/WPPS/W/7/Add.30
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- directors,techniciansandmanagersofforeignpublicorprivatecommercialorindustrial
entities, assigned fromabroad tocarry outspecific duties intheircompanies andwho
receive feesorsalaries inColombia. Inthiscase, too,thevisamaybeissued forup
totwoyears;
- inthecaseoftechnical assistance, foraforeigner whoenters thecountry temporarily
toprovide technical services toState, mixed orprivate industrial orcommercial
enterprises. Thevisamaybeissued foraperiod uptooneyear;
- full-time students inofficial orprivate establishments. Visas areforoneyearrenewable
forequal periods. Insuch cases, theforeign maynotengage inremunerated
employment;
- academics whoenter thecountry under academic agreements between institutions of
higher education inspecialist fields, under theresponsibility ofthecontracting higher
institution. Thevisawillbeforuptooneyear.
Exceptional permission toenterasavisitor mayalsobegranted bytheimmigration authorities,
forexample, toavisiting expert tocome tothecountry temporarily toprovide emergency technical
services toState, mixed orprivate industrial orcommercial companies, subject tosubmission ofaletter
ofresponsibility bythecompany dulyregistered inColombia. Thevisamaybeforamaximum of
90days.
B. Provisions onregulation oftheexercise oftheprofession ofpublic accountant (Law 43of1990)
Tobeadmitted asapublic accountant, aforeigner must havebeenresident inColombia for
atleastthreeyears priortotheapplication foradmission andmustsatisfy thefollowing requirements:
- Hemust haveobtained thedegree ofpublic accountant inaColombian university
authorized bytheColombian Government toconfer thedegree, andmustdemonstrate
experience ofatleastoneyearinaccountancy related activities;
- orhemusthaveobtainedthedegreeofpublicaccountantorequivalent,issuedbyforeign
institutions incountries withwhich Colombia hasconcluded agreements onmutual
recognition andconfirmed bythedulyauthorized government body;
- incases where Colombia hasnotconcluded anyagreement formutual recognition of
degrees, therequirements laiddown bytheColombian Institute forthePromotion of
Higher Education (ICFES) forvalidation ofhigher education degrees obtained abroad
incountries withwhich Colombia hasnotconcluded suchagreements mustbesatisfied
inorder toobtain accreditation ofthetitleofpublic accountant. Once thetitlehas
beenvalidated, itmust beconfirmed bytheMinistry ofEducation.
Thecountries withwhich Colombia currently hasbilateral agreements formutual recognition
ofqualifications inhigher education areasfollows: Argentina, Aruba, Bolivia, Brazil, Bulgaria, Costa
Rica, Cuba, Czech Republic, Dominican Republic, Dutch Antilles, Ecuador, ElSalvador, Holy See,
Mexico, Netherlands, Nicaragua, Panama, Peru, Russia, Spain, Uruguay andVenezuela.
35. Isthere anyprocedure facilitating thetemporary entry andstayofprofessionals tosupply
accountancy services? Please explain.S/WPPS/W/7/Add.30
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Theonlyspecific procedure isthattheprofessional mustberegistered asapublic accountant
withtheCentral Board ofAccountants andbedulyaccredited bymeans ofthepractising certificate.
36. Arethereanyrestrictionsonhiringoflocalprofessionalsbyforeignfirmsandprofessionals?
Please explain.
There arenosuchrestrictions. Theonlycondition isthattheymusthaveapractising certificate
issued bytheCentral Board ofAccountants.
VIII. NATIONALITY/RESIDENCY REQUIREMENTS
37. Isacondition ofnationality/citizenship imposed topractice certain activities, tostartan
education, toobtain alicence, tobecome member ofaprofessional body, etc.? Please specify.
Article 100oftheConstitution ofColombia provides thatforeigners shallenjoy thesame civil
rights andguarantees intheterritory oftheRepublic asColombian nationals, except asotherwise laid
down intheConstitution orthelaw.
Forthepurposes ofcarrying onaccounting activities, starting educational studies, obtaining
thepractising certificate andmembership ofaprofessional body, there aregenerally noconditions
ofnationality orcitizenship, other thanthealienregistration card, inthecaseofholders ofresidence
ortemporary entry visas valid formore thansixmonths.
38. Isacondition ofestablishment, prior residency orresidency imposed topractice certain
activities, toobtain alicence, tobecome member ofaprofessional body, etc.? Please specify the
conditions andthedefinition ofestablishment, residency, etc.when relevant. Isitpossible to
have aprofessional establishment inmore thanonecountry?
Toobtain apractising certificate topractice asapublic accountant, itisnecessary tohavebeen
resident inColombia foratleastthree years prior totheapplication forregistration bytheCentral
Board ofAccountants.
Residence isdeemed tobedefinitive establishment inthecountry, andaresident isaperson
whointends tosettle permanently inthecountry.
Thetemporary visaallows thepossibility ofbeing established forprofessional purposes inmore
thanonecountry.