Since COVID-19 was declared a global pandemic, most countries worldwide are implementing initiatives to alleviate the consequences this crisis is having on both people and companies. In the specific case of Colombia, in recent days a new regulation has come into force that has an impact on tax compliance.
According to Decree 535 of April 10, 2020, the refund and/or compensation of taxes is authorized by expedited route in fifteen (15) days of the balances in favor requested by those taxpayers who are not classified as high risk. This momentarily leaves ineffective, for the duration of the health emergency, the lapse of fifty (50) days, in some cases increased by an additional one (1) month, as well as the requirement that more than eighty-five percent (85%) of the costs and expenses come from invoices issued under the electronic invoicing mechanism, provided for in Article 855 of the Tax Statute (ET).
Likewise, and as long as the sanitary emergency is maintained, the relation of costs, expenses and deductions will not be required in order to process income tax refunds, although it should be noted that it will be required thirty (30) days after health emergency ends.
The Coronavirus crisis is causing businesses to face huge challenges and, in this context, reliable and up-to-date information is essential. At Auxadi, we are exports in providing accounts, tax compliance and international payroll management to our clients. If you would like us to expand on the above information, please do not hesitate in getting in touch with us.