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COVID-19 Weekly update - Colombia

Date: 2020/03/20

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As a firm, the well-being of our collaborators, clients, and business partners is our priority, which is why we have applied strict security measures to protect what we value the most: our health and our families.

Currently, our operating personnel is working remotely in as much as possible, using communication tools and technology that we have made available to them, allowing them to work uninterruptedly and safely anywhere.

Due to the health emergency generated by the COVID-19 pandemic, the National Government of Colombia, and inspection and surveillance entities have issued the following relevant provisions to consider during this contingency:

Corporate issues

1. Through Decree 434 of March 19, 2020, the Ministry of Commerce, Industry and Tourism, extended the deadlines for the renewal of the commercial registration, the RUNEOL and the other registries that conform the RUES Single Business and Social Register, until July 3, 2020.

DECREE 434 OF MARCH 19, 2020

2. Through External Circular 100-000003 of 2020, the Companies’ Superintendence extended the deadlines for companies to file their 2019 financial statements, starting on Tuesday, April 14, and until Tuesday, May 12, 2020.

External bulletin 100-000003 2020

3. Decree 1074 of 2015 is added regarding having no in-person meetings at shareholders’ meetings, general shareholders’ meetings or boards of directors, and other provisions are issued.

http://www.regiones.gov.co/Inicio/assets/files/26.pdf

Labor issues

Through Circular 021 of March 17, the Ministry of Labor sent a reminder of the labor alternatives that the legal system allows to apply in a situation like this: (i) Work at Home, (ii) Telecommuting, (iii) Flexible Labor Day.

http://www.regiones.gov.co/Inicio/assets/files/48.pdf

Tax Issues

1. Through Decree 401, the Ministry of Finance established special measures for the payment of income taxes and VAT for commercial air transport companies for passengers, hotels, and those whose main economic activity are theatrical activities, live music shows, and other shows.

DECREE 401 OF MARCH 13, 2020

2. Through Decree 435 of March 2020, the schedules for the filing and payment of the second installment of the income tax return are modified, beginning on April 21 and ending on May 19, according to the last, or two last digits of the NIT, for large taxpayers and legal entities respectively.

Likewise, the deadline calendar for the filing of the annual return of assets abroad for large taxpayers and legal entities was modified, beginning on April 21 and ending on May 19.

It is also established as a maximum term to pay the sales tax return (VAT of the March - April 2020, bimester) will be June 30, 2020, for those entities dedicated to selling prepared food, travel agencies, and tour operators.

DECREE 435 OF MARCH 19, 2020

3. For the provisions of article 766 of Decree 1165 of 2019 and other concordant provisions, the validity of the recognition and registration of permanent customs users and highly exporting users is extended until May 31, 2020.

DECREE 436 OF MARCH 19, 2020

4. Lastly, through Decree 410, the Ministry of Commerce, Industry and Tourism, modified the customs tariff for the importation of products necessary to face the sanitary emergency caused by the coronavirus COVID-19 to 0%.

DECREE 410 OF MARCH 16, 2020

5. The calendar for the taxpayers belonging to the Simple Regime was determined, in which they will make, every bimester, an advance tax payment for the taxable year 2020, starting on May 5, 2020.

DECREE 401 OF MARCH 13, 2020

J.A. Del Río reaffirms its responsibility to their clients of keeping them informed, guarantee the continuity of its services, and fulfill its commitments, avoiding, as much as we possibly can,  complications for your business.

Please keep in mind that you can always reach out to us in case you have questions or concerns regarding the salary or work situations of your employees to see it in conjunction with your legal advisors.