jurisdiction

Value Added Tax

  • Postponement of VAT payments for the next 3 months, for companies with annual sales amounting less than USD 11,5 million, enabling payments in 12 monthly installments with no penalty interests nor fines.

Corporate Income Tax

  • Payment of income tax refunds will be done in April 2020 (instead of May 2020).
  • Postponement of monthly income tax advance payments for 3 months.
  • All company's expenses  to face the health contingency will be accepted as a deductible tax expense.
  • Postponement until July 2020 of the annual corporate income tax payment for small/medium size companies (ie., annual sales not exceeding USD 2,5 million).The submission of the annual income statement must still be done in April 2020.
  • Extension of deadlines to submit auxiliary income tax statements.

Social Security Contributions or Payroll Tax

  • Employees that must remain in their homes and can not do home office work, will (i) mantain their employment; and (ii) social security obligations must still be paid by the company. However, the salary may be temporarily suspensed, while - in turn -the employee will receive funds from the unemployment insurance. 

Other relief measures

  • Transitory reduction of stamp tax to 0% ratevfor all loans granted during the next 6 months.
  • Postponement of real property tax installment originally due in April 2020. This measure is meant to benefit small companies and low-income individuals.
  • Flexibility to pay overdue taxes in installments to be agreed with National Treasury. This measure is focused in small companies and low-income individuals.

Additional comments

  • N/A