Tax Issues

1. Until June 19th, it could be applied to the abbreviated procedure in the request for favorable balances provided in Legislative Decree 535 of April 2020.

Decree 807 of 2020 modified the first paragraph of Decree 535 of the same year, allowing the application of the abbreviated procedure of balances in favor until June 19th.

Moreover, through Decree 807: (I) the rules for virtual tax and accounting inspections and visits were established, and (II) it was determined that, until December 31st, 2020, literal b. of paragraph 5 of article 855 of the Tax Code, to establish that only 25% of the costs and expenses and/or deductible sales taxes will be required from suppliers that issue their invoices through an electronic invoicing mechanism.

Decree 807 of 2020

2. Income advance to be calculated in the tax declaration for the taxable year 2020 may be 0%.

This benefit will apply to the sectors most “hit” by the effects of the pandemic, such as the sectors of (I) oil, (II) clothing, (III) mining, (IV) restaurants (V) air and tourism, among others.

Decree 766 of 2020

3. In-person service shifts are established at DIAN for the filing of Great Taxpayers.

DIAN announced shifts in which they will be attended in person.

DIAN resolution 00810 of 2020

4. The food and beverage sales service will be excluded from VAT until December 31st, 2020.

Also, a VAT exclusion was established for chemical raw materials destined for the production of medicines of tariff headings 29.36, 29.41, 30.01, 30.02, 30.03, 30.04, and 30.06 until the time of the sanitary emergency.

Decree 789 of 2020

5. New deadlines for paying taxes in Bogota.

ICA - “for its acronym in Spanish”: Regarding Industry and Commerce (for common regime taxpayers), they will be:

• Bimester 2 (March-April) until August 31st, 2020.
• Bimester 3 (May-June) until October 16th, 2020.
• Bimester 4 (July-August) until November 20th, 2020.
• Bimester 5 (September-October) until December 18th, 2020.
• Bimester 6 (November-December) until February 12th, 2021

Withholding ICA tax: Regarding withholding as Industry and Commerce tax, they will be:

• Bimester 2 (March-April) until August 6th, 2020.
• Bimester 3 (May-June) until September 18th, 2020.
• Bimester 4 (July-August) until October 23rd, 2020.
• Bimester 5 (September-October) until November 27th, 2020.
• Bimester 6 (November-December) until January 15th, 2021.

Property Tax: The maximum term to declare and pay the unified property tax for the taxable year 2020, is September 11th, 2020, or August 14th with a 10% discount.

SDH Resolution 00256 of 2020

Labor Issues

1. New measures were established in the workplace, the mechanism of dismissed protection and new rules were created to support employment.

Among the measures established by the National Government (through Decree 770 of June 2020) are: (I) Program Support of Premium payment (for workers who earn up to COP$1 million), (II) Premium payment agreement (up to 3 installments), and (III) extended workday agreements without the need to modify internal work regulations.

Decree 770 of 2020

2. Work at home employee transportation aid will correspond to a connectivity aid.

The National Government announced this temporary measure (for the duration of the health emergency) with the issuance of Decree 771 of June 2020. It will apply whenever employees who earn less than 2 SMLV - “for its acronym in Spanish” - current legal minimum wage, carry out their activities from their home.

Decree 771 of 2020

Should you need advice or further information, please do not hesitate to contact our team of professionals who will be happy to assist you.