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Colombia: Tax developments in response of COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated on a regular basis. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 28 October 2020

The Government implemented a procedure for automatic refunds of balance in favor of some and decreed measures to alleviate in some extent the transportation regulations. 

General measures 

  • The Ministry of Finance and Public Credit established an abbreviated procedure for the automatic refund of balances in favor of income and complementary taxes and sales taxes (such as VAT). In this regard, the Decree indicated that as long as the health emergency remains, taxpayers who are not classified as high risk by the DIAN, will be authorized to refund or offset the respective balances in favor by a simplified procedure within 15 working days from the date of the request. A legislative regulation (10 April 2020) provides relief in the form of an expedited tax refund procedure as a response to the coronavirus (COVID-19) pandemic. By means of the Decree 807 of June 4 the term for requesting refunds under the abbreviated procedure ended on June 19, 2020.

Additional Information

  •  Taxpayers — for income tax and value added tax (VAT) purposes — that are not classified as having a “high tax risk profile” are eligible to obtain a tax refund or to offset the amount of the refund against other tax debts within 15 business days following the date when they file an application for the tax refund or for the tax offset. The tax refund procedure will be available during the course of the COVID-19 emergency.
  • Taxpayers are not required to submit certain information (e.g., a detailed list of costs, expenses, and deductions in support of the refund claim), but after the end of the COVID-19 emergency period, taxpayers will need to submit such a list within 30 calendar days after the date when the emergency is declared to be over, without the need for a request from the tax authority. A failure to submit this information will be subject to penalties.
  • The Ministry of Finance and Public Credit decreed that 211 goods (e.g., glasses, gloves, mouthpieces, etc.) will be exempt from VAT on imports and sales in the national territory without the right to refund and/or offset, subject to compliance with certain conditions and requirements, such as medical gloves, masks, mouthpieces, cannulas, medical respirators, stretchers, ethyl alcohol, among others.
  • The National Government authorized the reduction of the 2020 advance payment of income tax through Decree 766, for which it selected the groups of economic activities that, according to the percentage variation of the total of self-withholdings between the month of April 2020 and the same month of 2019, have been most affected by the Covid 19. The activities to which the percentage of 0% and 25% will be applied based on the divisions of the International Standard Industrial Classification of all economic activities (ISIC) 4.0. adopted by the DIAN.
  • Through Decree 789 of June 4, the National Government established transitional tax benefits. Among the issues to be highlighted we find that (i) chemical raw materials destined to the production of medicines of tariff items 29.36, 29.41, 30.01, 30.02, 30.03, 30.04 and 30. 06, will be excluded from VAT; (ii) the franchise contracts associated to restaurants, cafeterias, self-service shops, ice cream parlors, fruit shops, pastry shops and bakeries, are excluded from VAT; (iii) the import of some motor vehicles is exempt from VAT after fulfilling certain requirements and (iv) the exclusion of VAT in the provision of hotel and tourism services. 

Transportation measures

  • The Ministry of Finance and Public Credit decreed that as from May and until December 31st, 2020, the distribution and transfer of resources from novel games of chance will be carried out in the month following their collection and not on a half-yearly basis. Likewise, the fixed fee for exploitation rights that must be paid by those who operate novel games of chance operated over the Internet will be reduced by 50%.
  • Economic measures were adopted for the air transport industry, among which are (i) benefit associated to Mega-Investments for those taxpayers of the income tax who make new investments in the national aeronautical sector for value equal or superior to 2,000. 000 UVTs; (ii) it is included as goods taxed at a rate of 5% (article 468-1), until December 31st, 2021 to "Jet A 1 aviation gasoline and/or 100/130 national aviation gasoline"; (iii) it is included as service taxed at a rate of 5% (article 468-3), until December 31st, 2021 to "passenger air transport".

Services provision guidelines

The DIAN established guidelines to guarantee the attention and provision of services by the entity. Among the outstanding matters found in the Circular are:

  • Payment arrangements.
  • Negotiation within reorganization agreements. 
  • Virtual attention for RUTs registration or updating procedures and issuance or renewal of electronic signatures.
  • Creation of mailboxes for return and/or compensation requests of credit balance and guarantees.
  • Parameters to determine whether a taxpayer will be considered high risk or null for purposes of processing the refund request.
  • Requirements that must be fulfilled by the refund requests for its admission.
  • All the refund requests filed before April 13th, will consider parameters to determine a taxpayer as high risk or null and will be carry out through the abbreviated procedure decreed as a result of the health emergency.

Solidarity tax and solidarity tax contribution

The DIAN, by means of legal opinion No. 100208221-469, clarified relevant issues regarding the solidarity tax and voluntary solidarity contribution due to COVID 19 such as:

  • Trigger fact and concept of salary.
  • Taxable individuals.
  • Taxable base and (iv) rate. 
  • The Colombian Tax Authority (DIAN), by means of legal opinion 100208221-485, pronounced on Decree 551 of 2020 (which established a transitory exemption for the import and sale of medical goods and supplies in the national territory). 
  • In this regard, the DIAN indicated in this pronouncement that only those goods necessary and indispensable for the provision of medical services to patients suffering from COVID-19 and preventive care are covered by the exemption, so that by not bringing the Decree a list of tariff subheadings, are covered all goods that were indicated in a generic way in the aforementioned Decree and that have as purpose those indicated above. 
  • Thus, the DIAN may require information to prove the purpose of the imported goods. Likewise, the DIAN will specify the other conditions and requirements that must be met in order to enjoy the benefit.

The Constitutional Court declared the solidarity tax contribution unconstitutional, for disregarding the principles of equity and equality of taxation and the generality of the tax, through the constitutionality ruling C-293 of 2020. The Entity's main argument is that a distinction was made between public and private sector employment, which led to a higher tax burden on public servants and State contractors. The decision taken by the Constitutional Court was taken with retroactive effect, so that the monies that the taxpayers have paid will be understood as income tax payments for the year 2020, to be liquidated and paid in 2021.

Transfer pricing obligations

  • The DIAN issued a press release reminding the importance of complying with transfer pricing obligations and with the objective of including in the Income Tax Return any effect arising from transfer pricing adjustments. No extension to transfer pricing deadline has been provided yet.

Customs/Import and Other Miscellaneous Taxes

For 6 months, the following determinations will apply for custom purposes:

  • 0% tariff rate will apply to the importation of certain HTS codes related to medicines, medical equipment.
  • 0% rate will apply to the importation done by Airlines in charge of the transportation of cargo or passengers.

The exportation and the re-exportation of some goods needed to cover the emergency related to the COVID-19 are prohibited for six months.

The national tax authority (DIAN) announced certain tax relief measures in response to the coronavirus (COVID-19) pandemic. Among the measures:

  • The deadlines for the filing and payment of national tax returns for direct taxes were extended.
  • Some local authorities have extended the deadlines for the submission and payment of municipal tax returns.
  • The deadlines for submitting tax and exchange information to DIAN were extended.

With respect to VAT declarations and payments:

  • The deadline for paying the tax is extended for taxpayers whose economic activities include: the sale of food and alcoholic beverages for consumption within the establishment and activities of travel agencies and tour operators.
  • Criteria were established for the recognition and payment of compensation in favor of the most vulnerable population to generate greater equity in the VAT system.

The national tax authority (DIAN) suspended terms in the processes and administrative actions in tax, customs and, exchange matters, from May 11th, to May 24th.

  • Some territorial tax authorities have also suspended the terms in the processes and administrative actions in tax matters.
  • Because of COVID-19, all the administrative proceeding deadlines related to customs procedures before the customs authority are suspended.
  • The DIAN clarified that this suspension do not apply for investigations prior to the refund and/or offset, which are already completed and which are only pending the expedition of the writ of closure.   
  • The tax authority (DIAN) again extended the deadlines for filing tax information for large taxpayers, harmonizing it with the deadlines they have for filing income tax returns. The deadlines begin on June 9th and end on June 24th, depending on the last taxpayers' digit Tax Identification Number (NIT as per its acronym in Spanish).
  • With Decree 766 of May 29th, the National Government reduced the percentage of the advance payment of income tax, for certain sectors to be liquidated in the year 2020 as well: (i) to 25% for mining activities, hydrocarbons, tobacco processing, manufacture of textile products, clothing, leather products, wood products, manufacture of basketware, manufacture of metal products, computer products, vehicles, furniture, mattresses, manufacture of electric motors and generators, construction, commerce of motor vehicles and film activities; (ii) 25% for the manufacture of engines, jewelry and games, retail trade of household goods, photography, renting and leasing of personal effects, organization of events and conventions, maintenance and repair of personal effects; and (iii) 0% for air transport activities, hotels, restaurants, travel agencies, tour operators, artistic activities, games of chance and sports and recreation activities. 
  • With Resolution 00058 of 1 June, the DIAN adopted urgent measures to guarantee the care and provision of its services. For this purpose, it should be taken into account that as of June 1, 2020 and during the period that the health emergency remains in effect, each sectional directorate of taxes and customs must forward all administrative acts subject to notification to the notification boxes.
  • DIAN clarified that will be considered tax residents in Colombia those individuals who remain continuously or discontinuously in the country for more than 183 calendar days including days of entry and exit of the country, during any period of 365 consecutive calendar days, since this term is not suspended.
  • DIAN clarified with respect to the special VAT exemption established in Decree 682 of 2020 that (i) it does not apply to the importation of goods including those imported from the free trade zone; (ii) it does not grant the right to refund and/or compensation but if credit balances are generated they may be charged in the VAT return of the following fiscal period; (iii) it is optional; (iv) the goods covered are taxable; (v) the person responsible for the VAT can only sell goods located in Colombia, at retail and to individuals who are final consumers; (vi) the day of the invoice and the date of payment must coincide; (vii) the goods must be delivered within two weeks after the sale; (viii) the sales price of the goods must be effectively reduced from the price, benefiting the final consumer. 
  • With Decree 798 of 4 June, the Ministry of Mines and Energy authorized retail distributors of Jet A 1 and/or 100/130 aviation gasoline of national and imported origin, who had inventories of these fuels as of 15 April 2020, to request the producer or importer to apply the mechanisms established in Article 484 of the Tax Statute, so that the inventories do not physically leave the place where they are stored, without prejudice to the fact that the same species of fuel may subsequently be invoiced with a 5% VAT rate and the rate differential may be refunded.
  • With Decree 799 of June 4, the Ministry of Commerce, Industry and Tourism suspends until December 31, 2020 the payment of the surcharge or special contribution in the electricity sector for providers of tourist services. 
  • Through Decree 807 of June 4, the Ministry of Finance established tax and exchange control measures. Among the relevant measures are (i) maximum term for the presentation of shortened refund request until June 19, 2020; (ii) tax and accounting inspections and visits on a virtual way. 
  • With Decree 808 of 4 June, the Ministry of Finance established measures for the gambling sector, in order to increase resources for health and prevent the extension of the effects of the COVID-19 pandemic.
  • With the joint Circular of the Ministry of Interior and the Ministry of Commerce, Industry and Tourism No. CIR2020-72-DMI-1000 of June 28th, the measures to be implemented for the second and third day without VAT were indicated, among which the following stand out: (i) the sale of household appliances, computers and communication equipment will be suspended and (ii) a time slot for the purchase of products may be established.
  • With External Circular 00008 of July 1st, DIAN informed that as of July 2nd, 2020, electronic notification of administrative acts issued by DIAN regarding tax matters will be implemented.
  • The Ministry of Finance and Public Credit modified the deadline for the second income tax and supplementary tax payments between November 9 and December 7, 2020 for entities considered as micro, small and medium enterprises, depending on the last taxpayers' digit Tax Identification Number (NIT as per its acronym in Spanish)
  • The DIAN reported that the three days without VAT in 2020 will be on June 19, July 3 and July 19. It was also reported that the amount was increased to COP 2,800,000 for some of the goods that would have the benefit and the list of goods would be expanded.
  • With Decree 688 of May 22, the Ministry of Finance established (i) a transitory decrease in the moratorium interest rate associated with tax obligations and those related to the General Social Protection System on obligations that are paid up to November 30, 2020 and for facilities or payment agreements that are signed up to November 30. For taxpayers with economic activities especially affected by the health emergency (commercial air passenger transport companies, hotels that provide hotel services and those taxpayers whose main economic activity is theatrical activities, live music shows and other live entertainment activities) the rate will be 50% of that established for other taxpayers; (ii) taxpayers who file their tax returns for taxes administered by the DIAN between April 1 and July 1, 2020 and are in delay of payment may request facilities or payment agreements through an expedited procedure until August 6, 2020 and no guarantee in rem shall be required; and (iii) the request for early termination of the processes and tax favourability in the collection may be filed until November 30, 2020. This term is applicable to requests before the DIAN and territorial entities. 
  • With Resolution 00053 of May 28th, the terms for the presentation of exogenous tax information were again modified. 
  • With Resolution 0049 of May 18, the DIAN indicated that income tax taxpayers who wish to access the Colombian holding company (CHC) regime may submit the required documents via e-mail. If the required documents are issued abroad and the apostille must be attached, the latter requirement may be submitted within 60 working days from the date of the lifting of the emergency declaration. 
  • With a ruling from the Constitutional Court, it determined that the transitional VAT exemptions for the import and acquisition of certain goods are fully connected to the declaration of emergency and are intended to ensure the protection of the rights to life, health and integrity of citizens. 
  • In a Constitutional Court ruling, the Court indicated that the procedure associated with the summary procedure for the refund and/or compensation of balances in favor of taxpayers of income tax and VAT and other related tax measures does not contradict any constitutional precept. 
  • DIAN stated that when the goods covered by the three-day benefit without VAT are not sold by units, the three-day limit will not be applicable, for example, when the products are sold by weight, without prejudice to compliance with the other requirements. Similarly, the DIAN clarified that the goods covered are described in a generic manner and therefore, those that are included within the descriptions established in the regulation will be covered by the exemption, as long as their sales price per unit is equal to or less than the limits indicated in the regulation. 
  • With Decree 886 of June 25th, the Ministry of Finance indicated that for the purpose of determining income and complementary taxes for the year 2020, it is presumed as a right that all money loans, whatever their nature or denomination, granted by the companies to their partners or shareholders, or these to the company, generate a minimum annual return, proportional to the time of possession, of four point forty-eight percent (4.48%).
  • By means of the Decree 807 of June 4 the term for requesting refunds under the abbreviated procedure ended, this same decree specified that the requests for refund and/or compensation that were in process through the abbreviated procedure on June 19, 2020, will end with this procedure, including those that were inadmissible and are filed within the month following their inadmissibility. This same Decree 807 established that between June 22 and December 31, automatic refunds would apply, with the special condition that it is demonstrated that up to 25% of the costs or expenses and/or discountable sales taxes come from suppliers that issue their invoices through the electronic invoice mechanism and that as of January 1, 2021, the percentage to be applied will be over 85%. Articles 1 and 2 of Decree 807 of 2020, which limited the validity of the procedure for return and/or compensation, were declared unconstitutional by the Constitutional Court, as it considered that this measure did not comply with the purpose of the procedure, which was to encourage economic recovery, since the validity of the procedure was limited. It should be noted that the Constitutional Court's ruling has future effects, so that taxpayers may continue to file requests for reimbursement and/or compensation under the summary procedure until the expiry of the health emergency period decreed by the National Government.
  • DIAN clarified that the sale or import of chemical raw materials destined to the production of medicines from positions 29.36, 29.41, 30.01, 30.03, 30.04 and 30.06 is subject to sales tax at the general rate. However, Decree 789 of 2020 temporarily excluded VAT on the purchase of chemical raw materials for the production of medicines in order to mitigate the impact of COVID-19. 
  • With Decree 963 of 7 July, the National Government established the procedure for the application of the refund and/or automatic offset of balances in favour determined in the tax and VAT returns for applications filed from 22 June to 31 December 2020. The refund and/or offset will be made within fifteen (15) working days from the date of filing the application, and will apply to taxpayers who do not represent a high risk, in accordance with the DIAN risk analysis system and that at least 25% of the costs or expenses and/or discountable taxes, as the case may be, are supported by the electronic sales invoice system with prior validation. 
  • Through Decree 981 of July 7, the National Government postponed until December 31, 2020 the payment of the first, second and third quarter of the Parafiscal Contribution for the Promotion of Tourism.
  • With Resolution 6015 of 9 July, the Communications Regulatory Committee amended the deadlines for payment of the second installment of the contribution declaration to be filed and paid between 1 and 30 September 2020. The value of the contribution shall correspond to the sum resulting from the application of the contribution rate set out in Article 1 of this resolution 5874 of 2019 to gross income earned in a cut as of December 31, 2019
  • By Decree 1010 of July 14, the National Government amended the issues associated with the supplementary tax rate on income tax and wealth tax.
  • By Decree 1011 of July 14, the National Government regulated the tax benefits associated with investments in research, technological development and innovation projects or staff ties with doctoral degrees.
  • By Decree 1012 of 14 July, the National Government regulated the procedure for virtual auction in tax matters.
  • With Decree 1013 of July 14, the National Government regulated the benefit provided for in the Financing Act associated with employer contributions from employees' education which are deductible to employers and are not considered indirect payments made to the worker.
  • By Decree 1014 of July 14, the National Government regulated the procedure for termination by mutual agreement and conciliations with the Directorate of National Taxes and Customs – DIAN.
  • With Resolution 00075 of 8 July the DIAN amended Resolution 000064 of 2020 relating to the information to be delivered by the seller who made the sale of goods covered by Article 4 of Decree 682 of 2020 (days without VAT).
  • Through the concept 772 of 2 July the DIAN ruled on the exclusion of VAT provided for in Article 10 of Decree 682 of 2020, applies to commercial premises or physical spaces where goods and services are offered, so the exclusion is not applicable to the leasing of other commercial properties, such as offices and warehouses. The measure is in force from 21 May and runs until July 31, 2020, and applies on (i) the lease charges of commercial premises and (ii) payments for the grant of commercial spaces, provided that such fees and payments are monthly caused and invoiced after May 21. 
  • By Decree 1044 of 16 July, the National Government suspended the completion of the day of the exemption in sales tax – VAT covered by numeral 2.3 of Article 2 of Decree 682 of 21 May (day without VAT).
  • By Decree 1054 of 19 July, the National Government regulated tax matters relating to investors, private equity funds and collective investment.
  • The DIAN by means of Legal Opinion 706 of 12 June indicated that, compared to 3 days without VAT, in respect of the registering machines, it stated that it must be issued on the day on which the disposal of covered goods took place and, from that day on, two weeks are counted for delivery. Withholding tax on VAT in transactions made with credit or debit cards should not be carried out in the case of the disposal of covered goods which are subject to the special exemption of Decree 682, since there is no taxable basis on which it is carried out.
  • With Concept 693 of 11 June, the DIAN indicated that for the purposes of the solidarity tax with Covid-19 in the case of a person who is a contractor and is additionally a pensioner, it is not possible to add the values corresponding to pension fees and allowances, but that each case must be analyzed separately.
  • By Decree 1066 of 23 July, the Ministry of Finance regulated verbatim (a), (b) and (c) of numeral 4 of Article 235-2 of the Tax Statute and replaced Articles Chapter 22 of Title 1 of Part 2 of Book 1 of Decree 1625 of 2016. All of the above related to housing of social interest and / or of priority interest.
  • With Resolution 00079 of 24 July, the DIAN adopted transitional measures for the conduct of audits and virtual visits.
  • By Resolution 00078 of 16 July the DIAN established for the taxable year 2020 and following, the content, technical characteristics and deadlines for the submission of the information to be provided by the Financial Institutions Subject to Reporting to the DIAN.
  • With Legal Opinion 936 the DIAN recalled the tax treatment of the Service Premium Payment Support Program -PAP.
  • With Legal Opinion 0485 of 29 July, the DIAN, among other things, modifies its previous position regarding the way in which administrative acts are notified when electronic notification cannot be made.
  • With Legal Opinion 803 of July 3, the DIAN reiterated that for the application of the VAT exemption covered by Decrees 417 and 551 of 2020 q, two conditions must be met: (i) that is a product of those indicated in the decree and (ii) that aims at the control and prevention of COVID 19. Consequently, for disposable head caps, they are expressly listed in Decree 551 and meet the objective of monitoring and preventing the pandemic
  • The Constitutional Court declared unconstitutional Decree 568 of 2020 on the creation of the solidarity tax by Covid-19, on salaries or service contracts of 10 million or more, payable by public servants and State contractors. 
  • With Resolution 00080 of July 28th, DIAN established modifications to facilitate the authorization of electronic signatures of individual
  • With Decree 1089 of July 3rd, the National Government regulated the VAT Discount for the Acquisition of Real Productive Fixed Asset. 
  • Through Decree 1091 of 3 August the National Government made modifications: (i) to the unified tax under the simple taxation regime; (ii) to the registration, updating and request for cancellation in the Single Tax Registry -RUT and related issues and (iii) information that municipalities and/or districts must submit to the DIAN. 
  • With Resolution 081 of July 29th, the DIAN corrects a formal error associated with the content of the report and replaces Annex 1 of Resolution 000075 of July 8th, 2020. 
  • Resolution 082 of July 30th modifies Resolution 151 of 2012 that establishes the procedure for the presentation of requests for refund and/or offsetting of credit balances generated in income and complementary tax returns and sales tax -VAT. 
  • DIAN, by means of Concept 867 of July 16th, indicated that despite the situation caused by Covid-19, social and sports clubs must continue collecting maintenance fees, without providing services or developing activities, these fees would not be taxed with sales tax, on a transitory basis and during the period in which they do not provide their services, since the event generating the tax, that is, the provision of the service, is not configured in the terms of Article 420 of the Tax Statute. In any case, social and sports clubs must prove the absence of service provision if necessary. 
  • By means of Concept 763 of June 25th, DIAN indicated that the term referred to in Article 855 of the Tax Statute, associated with the request for refund of credit balances, is not applicable when it is a matter of the abbreviated procedure referred to in Decree 535 of 2020 and its amendments, since it has a special term as a consequence of Covid-19.
  • With Concept 778 of July 1st, DIAN indicated that the expression "companies dedicated to commercial air transport of passengers" provided for in Decree 401 of 2020, should be understood in its natural and obvious sense. Therefore, the exceptional measures provided for therein are only applicable to such companies, and cannot be extended to other types of companies, even if they are related to commercial air passenger transport, as is the case of ground support service companies and companies that develop activities at airports.
  • By Decree 1103 of 10 August, the Ministry of Finance regulated indirect alien disposals, provided for in Article 90-3 of the Tax Statute.
  • By Decree 1121 of 12 August, the Ministry of Finance partially regulated Article 156 of Law 2010 of 2019 on the temporary benefits of territorial entities in respect of contracts originating from public credit operations and payment agreements signed with the Nation- Ministry of Finance and Public Credit.
  • By means of Decree 1147 of August 18th, the National Government regulated certain articles of the Tax Code in relation to the tax works mechanism on the occasion of the amendments incorporated in Law 2010 of 2019.
  • By means of legal opinion 888 of July 21, the DIAN indicated that the extensions established in Decree 401 of 2020 are not extended to other types of taxpayers and/or responsible such as housing and tourist apartments providing accommodation services.
  • Through Decree 1157 of August 21, the National Government regulated Megainvestments. 
  • With Decree 1166 of August 25, the Ministry of Commerce, Industry and Tourism regulated the national tax on tourism as a social investment. 
  • With Ruling C-292 of August 5, the Constitutional Court declared the conditional application of Decree 551 of 2020 with respect to VAT exemptions, on the understanding that the planned exemption will lose force at the end of the next tax period. 
  • With Ruling C-293 of August 5, the Constitutional Court declared the joint and several tax unconstitutional. This ruling has retroactive effects; consequently, the cancelled monies will be understood as a credit to the income tax for the 2020 term that must be liquidated and paid in 2021. 
  • DIAN stated that the administrative fee referred to in Resolution 3596 of 2006, which corresponds to the remuneration for the issuance of air tickets applicable to the sale of national and international air transport services of passengers, which must be charged by travel agencies and intermediaries and by airlines in their direct sales, is not covered by the sales tax exclusion enshrined in Article 4 of Decree 789 of 2020, since it does not qualify as a hotel and tourism service.
  • By means of Decree 1205 of September 1, the National Government established the requirements, terms and conditions for the subscription of partial payment agreements by the Administrator of the Resources of the General System of Social Security in Health with the recovering entities and other associated entities. 
  • By means of Resolution 1677 of 4 September, Civil Aeronautic extended until the fifth working day of October 2020 the term for the refund, remittance and presentation of the amounts collected by way of national stamp duty for the quarters of March, April, May, June, July and August 2020. 
  • With Ruling C-379 of 2 September, the Constitutional Court declared that those who are not liable for VAT can access the tax credit for VAT paid on real productive fixed assets, insofar as those liable and those not liable are in the same situation of equality in terms of income tax versus the tax credit and therefore the exclusion of a group from access to it is not justified.
  • With Ruling C-394 the Constitutional Court declared unconstitutional Articles 1 and 2 of Decree 807 of 2020 related to the termination of the summary procedure for the refund of balances in favor of income taxes and VAT, since in the Court's opinion, this measure is not intended to address the causes that led to the declaration of the state of emergency, nor does it respond to the requirement of factual necessity. The other provisions of the decree were declared enforceable.
  • The DIAN, through legal opinion 1017 (904279) of 21 August, clarified that, in the events in which the income tax return is corrected, by decreasing the tax in charge or increasing the balance in favor, it will be possible to determine whether an overpayment was made as a result of the application of Decree 766 of 2020, which established a reduction in the rate of the income advance for the taxable year 2020, in those events the taxpayer initially determined the advance with the rules established in article 807 of the Tax Statute. 
  • By means of a communiqué from the Presidency of the Republic on 24 September, it was announced that the third day without VAT would take place during the last two months (November - December) of 2020. 
  • DIAN by means of Concept recalled that until November 30th or until the health emergency lasts, the VAT exemption for some goods and inputs established in Decree 551 of 2020 will be maintained.
  • DIAN indicated that the exclusion of VAT on the lease of commercial premises and the concession of commercial space applies as long as, among other requirements, the establishment was open to the public before the declaration of the emergency, its activities are necessarily associated with the concurrence of clients and that due to the crisis it has had to close totally or partially for a period exceeding two weeks. Each responsible party must verify compliance with the requirements to determine whether or not the benefit is applicable. 
  • By Decree 1291 of 28 September, the Ministry of Finance amended Decree 2555 of 2010 with regard to the classification of investors and the private equity fund regime. 
  • The Constitutional Court with Sentence C-292 of August 5 declared constitutional the Decree 551 of 2020 through which transitory tax measures were established associated, among others, to VAT exemption in the importation and sales in the national territory of certain goods associated to the mitigation of the Covid-19. Article 1 of said Decree was conditioned on the understanding that the tax measures will be in force during the sanitary emergency declared by the Ministry of Health and will cease to be in force at the end of the following fiscal period, unless Congress, during the following year, grants them a permanent character. 
  • The DIAN, through Concept 904797 of September 8, when asked whether VAT should be charged on a contract for the supply of mask covers signed before Decree 551 of 2020 came into force but on which the goods will be delivered after the Decree comes into force, indicated that regardless of the date of conclusion of the contract, the time of importation, sale in the national territory and/or delivery should be assessed in accordance with the considerations of the DIAN. 
  • By means of concept with filed 905012, the DIAN specified in front of the Decree 551 of 2020 the following: (i) if the import, sale and delivery take place within the term of Decree 551, the import and sale will be covered by the exemption; (ii) if the import takes place during the term of Decree 551 but not the sale, only the import will enjoy the exemption; (iii) if the sale takes place during the term of Decree 551 but not the delivery, the benefit of Decree 551 will not be available. 
  • The DIAN, in a press release dated 16th October, reiterated that the RUT procedures can be carried out by e-mail. Since September, the service for the registration has been available completely online. The new service allows individuals to obtain the document, for the first time, with a guided process completely online, without personal assistance and without having to travel.
  • The Secretary of Finance of Bogota with Resolution SDH 000438 of October 15 postponed the tax due dates associated with the declaration and payment of the ICA; the ReteICA and residential property tax.
  • By Decree 1377 of 21 October the Ministry of Finance replaced Title 2 of Part 12 of Book 2 of Decree 1068 of 2015 associated with the presumption of costs, consolidated legal situation by payment, direct revocation and termination by mutual agreement, offer of recovation in judicial conciliations and procedures for its application of the UGPP. This Decree will have temporary effects until the end of the two ordinary legislatures following the notification of Ruling C-068 of 19 February 2020 issued by the Constitutional Court, except for its application in the case of Administrative Conciliation and Termination by Mutual Agreement under the terms provided in articles 118, 119 and 139 of Law 2010 of 2019, the former, as amended by article 3 of Legislative Decree 688 of 2020.