Amendment of the Tax Calendar for the Filing of the Income Tax Return

Tax Flash

Amendment of the Tax Calendar for the Filing of the Income Tax Return Decree No. 520 of April 6th,2020.

Through Decree No. 520 the Ministry of Finance amended the dates for the filing and payments of the income tax return for large and ordinary taxpayers, as well as the return of foreign assets, in the following terms: 1.

Income Tax A.

Large Taxpayers

From this Decree, large taxpayers will have between June 9th and June 24th, 2020 to file and pay the income tax. Thus, large taxpayers will have the following payment options, bearing in mind the filing of the income tax return must be done according to the las digits of the taxpayer’s ID. Alternative No. 1 First Payment

Second Payment

Taxpayer made the payment during February, plus 20% of the advanced payment made by 2018.

Taxpayer may pay between April 21st and May 5th, 2020, plus 45% of the advanced payment made by 2018.

Filing of the Income Tax Return and Third Payment Taxpayer must pay between June 9th and June 24th From the advanced payment made before, the taxpayer will credit the remaining tax.

Alternative No. 2

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Taxpayers that do file the income tax return by the initially provided dates (April 21st and May 5th, 2020), may pay the tax in two payments the first 50% between April 21 st and May 5th and the left 50% between June 9th and 24th, 2020.

The income tax return that result in balances in favor by the first payment term will not have to liquidate the first payment. However, if by the time of filing it results in a due tax payment the taxpayer will held liable to pay late payment interest.

B.

Ordinary Taxpayers

Ordinary taxpayers will have two options, bearing in mind the filing of the income tax return must be done according to the las digits of the taxpayer’s ID. Alternative No. 1 First Payment Taxpayer may pay between April 21st and May 5th, 2020, plus 50% of the advanced payment made by 2018.

Second Payment Taxpayer must pay between June 1st and July 1st, 2020.

From the advanced payment made before, the taxpayer will credit the remaining tax.

Alternative No. 2 In case taxpayers had filed and paid the income tax return by the time of first payment, the 50% will be taken as the 50% of the due tax which must be paid between April 21 st and May 5th,2020.

The remaining 50% will be paid as a second payment, within the new term.

In summary, we understand we have the following special cases: That by FY 2018 the company had presented tax losses o That by FY 2018 the company had liquidated balances in favor or That by FY 2018 the company was not incorporated or That by FY 2019 the company generates a balance in favor.

Our opinion in those cases is that the filing of the tax return and its payment will due between June 1st and July 1st, 2020 which is the provided term for the second payment.

2.

Foreign Assets Return New dates were provided for the filing of the foreign assets return, as follows: BOGOTÁ

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Between June 9th and 24th, 2020.

Between June 1st and July 1st, 2020.

Large Taxpayers Ordinary Taxpayers 3.

Decree 401/2020: Still in force

We clarify that through Decree 401 of 2020 the Ministry of Finance moved the provided terms for the filing of the income tax returns of directly affected entities (aircraft, hotel and hospitality, spectacle industry) which can do the payment of the income tax, as follows: First payment: Up to July 31st, 2020.

Large Taxpayers and Ordinary Taxpayers Second payment: Up to August 31st, 2020

We are by your side! The aforementioned information will be continuously reviewed by our tax specialists during the State of Emergency caused by COVID-19.

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