Executive Regulates Foreign Currency Operations, Exchange Reconciliation Systems and Normalization Tax
17 julio 2020

On July 15, the Bank of the Republic (BanRep, in Spanish) launched two public consultations on securities issues and the registration of foreign currency operations. Additionally, the Ministry of Finance issued two decrees on the normalization tax and processes for exchange reconciliation systems. More details on each subject are provided below:
The BanRep launched a public consultation on a draft regulation to eliminate the 30-day period for issuing public debt for repo operations. The idea is to establish differential reserve percentages for term deposits and authorizes counterparty central risk chambers to act as placement agents for open market operations in specific transactions. Those interested may send their comments until July 24, 2020, here.
Furthermore, the entity launched another public consultation for a draft regulation to extend the timeframes for registering foreign currency transactions. For operations involving Colombian pesos, the time limit increases from 15 to 45 minutes until October 30, 2020. Interested parties may send their comments until July 24, 2020, here.
The Ministry of Finance issued Decree 1010 modifying the normalization tax, which complements income and wealth taxes. It applies to entities whose fiscal costs are lower than their underlying assets and regulates the economic use, reorganization and repatriation of assets. The regulation is already in force.
The Ministry also issued Decree 1014, regulating processes for the administrative tax, customs and exchange reconciliation. The National Tax and Customs Directorate (DIAN) is thus responsible for deciding requests for reconciliation and termination by mutual agreement. It also establishes requirements, values and sanctions in these cases. The regulation is already in force.