On 29 May 2020, the Colombian Ministry of Finance and Public Credit has published Decree 766, through which it reduces the advance payment to be made by income taxpayers in the year 2020, as a consequence of the emergency generated by COVID-19.

In accordance with Article 807 of the Tax Statute, the general rule is that taxpayers are required to pay 75% of the tax as an advance. Now, on the occasion of the crisis generated by COVID-19, the Government has considered that the advance must be reduced to alleviate the burden on taxpayers.

Now, regarding the economic activities that will receive the benefit, the general rule is that those taxpayers who carry out the economic activities included in the Decree must pay only 25% of the advance. However, according to the Decree, those taxpayers who carry out the following economic activities, among others, will pay 0% of the advance:

  • passenger air transport
  • accommodation
  • food and beverage service activities
  • tour operators, reservation services, activities of travel agencies and related activities