Finance Ministry Launches Public Consultation on Decree Establishing Payment Deadlines for Financial Institutions
Colombia
24 enero 2020

The Ministry of Finance has launched a public consultation on a draft decree amending Decree 1625 of 2016 on tax issues. The regulation includes the deadlines for financial institutions to pay the advance payment of the income tax surcharge, the wealth tax and the SIMPLE tax as established in the recently enacted Economic Growth Law. The interested parties will have time to comment on this until February 5, 2020, and can do so by clicking here.

The main elements of the draft decree are:

  • Amends the terms of payment of the surcharge tax. The payment of the surcharge tax to financial entities, equivalent to 4 percentage points more than the income tax (32%), will be made in two equal payments. The first will cover the period from February to April 2020, the second from April to June 2020. The draft decree eliminates the third payment, which according to Decree 1625 of 2016 was to have been paid in June 2020.

  • Establishes the deadlines for paying the equity tax. For the payment of the 1% equity tax by companies with assets over USD 1.49 million in 2020, the document establishes that tax returns must be filed with the Ministry of Finance between September 28 and October 9, 2020. The first payment must be made in May 2020 and the second between September 28 and October 9, 2020.

  • Modifies the period of payment of the bi-monthly advance of the SIMPLE regime for the year 2020. The tax is payable by individuals whose annual income is below USD 849,446 or for companies with less than one year of existence: 
    • Payment of the tax for January-February will be made in March.
    • The March-April payment will be made in May.
    • The payment for May-June will be made in June.
    • The payment of July-August will be made in September.
    • The September-October payment will be made in November.
    • The November-December payment will be made in January 2021.
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