On April 14 the Ministry of Finance issued Decree 535, to make it easier for companies and individuals to get tax rebates for Income Tax and Sales Tax. The head of the National Tax and Customs Directorate (DIAN, for its acronym in Spanish), José Andrés Romero, pointed out that the idea is for taxpayers affected by the COVID-19 pandemic to have access to greater cash flow and liquidity to meet their obligations. Likewise, it published a decree to force banks to buy public bonds. The regulations are already in force and will be in effect throughout the Health Emergency. 

The document stipulates that taxpayers and those who have to pay income tax and sales tax and who are not classified as high risk for tax purposes, will qualify for tax rebates through a simplified procedure within fifteen days as from the date when their application is submitted. Taxpayers requesting this benefit must present their list of costs, expenses and other deductibles within thirty days following the lifting of the Health Emergency.

Romero stressed that the decree establishes automatic rebates according to a simplified procedure. “The automatic rebate system means that people can submit their applications through electronic means,” he explained. However, the Director of DIAN requested that those taxpayers able to fulfill their obligations continue to do so, since this is “the best way to show solidarity with the State and enable it to have the resources necessary to cover the crisis.”

Likewise, Decree 562 creates a temporary mandatory investment in Internal Public Debt Securities called “Treasury Solidarity Securities” (TDS). All credit institutions will be obliged to invest in TDS. The investment percentage will be calculated based on the deposits received and the financial statements submitted by each entity. The total value of the capital will be paid on the maturity date of the title, and interest will be recognized annually.