In this last week, the National Government in use of its faculties, issued a large number of Decrees to combat the health emergency that occurs in Colombia as a result of COVID-19.
Through this flash, you will find the main benefits and regulatory changes that have occurred in commercial, tax, and labor matters. Likewise, you will find a summary of the primary measures issued since the emergency began and to date.
Corporate issues
1. Decree 545, on April 13th, 2020, the Ministry of Justice and Law, established the temporary suspension of the insinuation requirement for some donations.
Decree 545 of 2020
2. The Ministry of Commerce, Industry, and Tourism, through Decree 560, adopted special transitory measures regarding insolvency processes, within the framework of the State of Emergency.
Decree 560 of 2020
Tax Issues
1. An automatic refund procedure for favorable balances generated in VAT and income tax returns was established within 15 days from the date of filing.
Decree 535 of 2020
2. Through Decree 551 of April 15th, 2020, the Ministry of Treasury temporarily established a list of products exempt from VAT.
Decree 551 of 2020
3. The deadline for filing the declaration and making the payment of the national tax for tourism in regards to the first and second quarters of the year was extended until October 30th, 2020.
Decree 557 of April 15th, 2020
4. Starting April 15th, 2020, the commissions for the service of guarantees granted by the Agricultural Guarantee Fund - FAG were excluded from VAT until December 31st, 2021, and withholding tax for those services will be 4%.
Decree 573 of 2020
5. DIAN, through its Sectional Directorates, informed citizens that virtual mailboxes had been set up to file documents to DIAN.
Press release April 13th, 2020
6. The solidarity tax was created; it will be in the hands of public officials who earn more than Cop$10 million.
Decree 568 of 2020
Labor Issues
1. The possibility of reducing the mandatory pension contribution is established, going from 16% to 3% (75% at the employer's head and 25%) for April and May (payment in May and June, respectively).
Decree 558 of 2020
Other topics of interest
1. The Ministry of Finance and Public Credit issued Legislative Decree 576 through it adopts measures in the sector of games of luck and gambling, to prevent the extension of the effects of the COVID-19 pandemic.
Decree 576 of 2020
2. The Ministry of Transport adopted measures to mitigate the economic effects generated by the Coronavirus COVID-19 pandemic in the transport and infrastructure sector.
Decree 575 of 2020
Summary of the main measures
Through the following link, you will find the summary of the main measures issued by the Government Authorities about COVID-19 / See here.
Should you need advice or further information, please do not hesitate to contact our team of professionals who will be happy to assist you.
