Authors
Considering the health situation due to the effects of COVID-19, and as a response to the volatility of oil prices and the uncertainty of international financial conditions, the Colombian Government decided to declare an economic emergency and create mechanisms to deal with the needs of the health sector, as well as mitigate the adverse effects on the national economy.
Regarding tax matters, regulations that have been issued in recent days seek to offer a relief to taxpayers, ranging from the suspension of the terms in administrative processes and actions to the extension of deadlines for the payment of some tax obligations for some sectors of the economy. Below, we present the measures adopted to date:
| Regulation | Date | Topic | Development |
|---|---|---|---|
| Resolution DIAN 0022 | March 18 | Suspension of terms in processes and administrative actions in tax, customs and exchange matters |
|
| Decree 436 Issued by the Ministry of Finance and Public Credit | March 19 | Transitional customs measures |
|
| Decree 435 issued by the Ministry of Finance and Public Credit | March 19 | Modification of deadlines for the presentation and payment of tax returns |
|
| Decree 401 issued by the Ministry of Finance and Public Credit | March 13 | Modification of terms for payment of tax returns |
|
| Tax Bulletin issued by the Tax Local Authority (Secretaria de Hacienda Distrital) | March 18 | Extension of the term for the payment of the real estate tax in Bogota |
|
At the same time, at the Latin American level, various actions have been presented that seek to reduce the economic impact of the current situation. To mention some of the strategies, below we summarize some of those adopted in Chile and Peru:
Chile
- Suspension of the Provisional Monthly Payments (PPM) of the Corporate Income Tax for the next 3 months.
- Extension of the terms for payment of VAT for the next 3 months for all companies with sales lower than UF 350.000 during 2019, making it possible to pay in 6 or 12 monthly installments at zero real interest rate, depending on their size.
- Anticipation of the tax refund for income tax corresponding to the PYMES who will receive their refund in April.
- Extension of the terms for payment of the PYMES income tax, until July 2020, according to what is declared in the April operation.
- Extension of the terms of the payment of contributions in April for companies with sales lower than UF 350.000 and individuals with properties with a tax assessment of less than $133 million. The contribution will be paid in three installments, along with the following three contribution installments, with an interest rate of 0%.
- Transitory reduction to 0%, from April, of the stamp and stamp tax for all credit operations during the next 6 months.
- Relief measures for the treatment of tax debts with the General Treasury of the Republic (TGR) focused on PYMES and individuals with lower incomes: flexibility to enter into tax debt payment agreements with TGR, without interest or penalties from April.
- All the expenses of the companies associated with facing the health contingency will be accepted as a tax expense.
- Flexibility of the terms to file Affidavits associated with the income operation this year.
Perú
The National Superintendence of Customs and Tax Administration (SUNAT) has released some measures among which it has been foreseen that there will be no tax fines or penalties from March 16th until the entire duration of the State of Emergency. The entity decided that those who are paying their tax debts in installments and have problems paying them off this month will not be penalized; that is, this facility will not be lifted.
On the other hand, the Tax Administration ordered that individuals and companies can request the release of the fund from their detractions, in order to have availability in this emergency stage.
The deduction implies that those who pay the general sales tax (IGV) in advance, whether for sale or purchase of goods and services, must deposit the corresponding amount in a fund opened at the Nation Bank (Banco de la Nación), to ensure compliance with this tax obligation.
Regarding the filing of tax returns and information, the obligation to submit electronic books is extended by one (1) month (book of inventories and balance sheets, registry of fixed assets, registry of costs, among others) and the period is postponed for three months. Expiration period of the 2019 annual Income Tax Declaration, as well as the presentation of the monthly affidavit of February 2020 was postponed for three (3) months.
