Deductibility of labor payments arising from litigation.
The DIAN, through Concept No. 1002025S010449 dated August 4, 2025, clarified that labor and benefit payments arising from legal disputes must be supported by the Electronic Payroll Payment Support Document in order to be deductible for income tax purposes, even if the employee no longer has a current employment relationship.
These payments retain their employment nature and must therefore meet the same requirements as ordinary wages. Without the supporting document, the expense will not be deductible and will generate a permanent difference in the accounting records.