On 29 October 2021, the Colombian National Tax Authority (Dirección de Impuestos y Aduanas Nacionales-DIAN) has issued Resolution No. 000126, through which DIAN has temporarily reduced penalties to 20% and a default interest rate of 20% of the current bank interest rate.

Furthermore, DIAN has issued Concept 100208192-415 on article 45 of Law 2155 of 2021 on temporary reduction of sanctions and the interest rate on 5 November 2021.

In order to access the reductions the following requirements is necessary:

  • payment or subscription of payment facilities of the obligations administered by DIAN that are late in payment as of 30 June 2021;
  • taxpayer have to make payment or subscription of payment facilities with the DIAN of the obligations, penalties and interests referred to in the aforementioned article 45 until 31 December 2021;
  • the non-compliance has been caused or aggravated as a result of the pandemic generated by COVID-19.

This relief also reduces the penalty for value-added tax (VAT) in certain cases.