Ministry of Finance Launches Public Consultation to Regulate SIMPLE Tax Regime
10 enero 2020

On January 8, the Ministry of Finance launched a public consultation on a draft decree regulating the SIMPLE taxation regime, an optional annual taxation model including all formal and material taxes levied on natural and legal persons. The idea is to encourage micro and small enterprises to register formally, and the mechanism also applies to foreign investors operating in stock exchanges. Those interested in participating may send in their comments until January 23, 2020 by clicking here

The draft decree proposes to regulate Article 74 of Law 2010 of 2019 replacing Book Eight of the Tax Statute and creating “a unified tax to be paid under the Simple Taxation System – SIMPLE.” Special requirements are set for foreign capital investors and those investing through foreign securities systems or stock exchange integration agreements, as they must present the identity documents of their legal representatives in Colombia, as well as the Certificate of existence and legal representation issued by the Colombian Finance Superintendency regarding their local securities deposits.

This draft decree is part of the regulatory process of Law 2010 of 2019, known as the Economic Growth Law. With this objective, on January 6 the same ministry published three draft decrees on tax normalization, indirect sales and undercapitalization, open for comments until January 18, 2020. These three regulations cover income tax for those entities operating with shares and investment funds.