COVID-19: Labor, trade and tax measures

Decrees 401 and 435 of 2020 made changes to file and pay taxes.

Dian announced that the filing of exogenous information for the taxable year 2019 will be postponed.

Supersociedades modified calendar for filing financial statements of companies as of December 31, 2019.

On Tuesday, March 17, 2020, the President of Colombia, Iván Duque, decreed a state of emergency in the country, as allowed by Article 215 of the Political Constitution of Colombia, in order to address COVID-19.

Along with this enactment, Duque, as of Wednesday, March 18, 2020, has been announcing a set of economic measures that accompany and address this emergency.

In this way, various State entities have announced measures to address the consequences that COVID-19 could bring.

VAT refund began

The National Government announced that on April 1, 2020, 142 thousand people began to receive VAT refunds through DaviPlata of Davivienda. From March 31, 2020, close to one million vulnerable families will receive $75,000 every two months.

Luis Alberto Rodríguez, director of the National Planning Department, stated that the measure is not just another subsidy. Nor is it temporary. It is a way to correct an inequity that has been present in Colombia over the years.

“The VAT refund program has to do with the same burden that both the most vulnerable people and families of great economic resources have had to pay”, highlighted Rodríguez.

First measures around the tax schedule

The Ministry of Finance finally published Decree 401 of March 13, 2020, with which it modified, replaced and added articles to Decree 1625 of 2016, related to the deadlines to make the payment of:

– Wealthtax.

– Tax normalizationtax.

– Incometaxfor taxpayers linked to the works for taxes mechanism.

–Advanceto income tax surtax for financial institutions.

– Bimonthlyadvance paymentfor taxpayers of the simple regime corresponding to the taxable year 2020.

The above, due to the novelties introduced by Law 2010 of 2019 on these taxes.

Likewise, through the same decree the national government included some measures in the payment of income tax and VAT after the declaration of sanitary emergency in the national territory generated by the spread of COVID-19.

–Advance ofthe income tax surtax for financial institutions.

– Incometaxfor taxpayers requesting the linkage to the works for taxes mechanism.

– Legalentities(not qualified as large taxpayers).

– Legalentities(large taxpayers).

–Deadlinesto deposit the resources in the trust.

Decree 435 made further changes in the tax schedule.

On March 19, 2020 the Ministry of Finance issued Decree 435, through which it established new dates for the filing and payment of the income and complementary tax return corresponding to the taxable year 2019, in charge of large taxpayers and legal entities.

Likewise, new dates were established for the payment of VAT for the two-month period March – April and the four-month period January – April 2020 by the economic sectors that develop food and beverage service activities, travel agencies and tour operators.

Submission of exogenous information for taxable year 2019 will be postponed

The director of the Dian, José Andrés Romero, had announced through his Twitter account on March 24 that the entity was working on a resolution to postpone the presentation of exogenous tax information for the taxable year 2019.

Well, with Resolution 000027 of March 25, 2020, the modification of the dates for the respective reporting of exogenous tax information is confirmed, remaining as follows:

–Largetaxpayers from May 15 to May 29.

– Legal entities and individuals from June 1 to July 1.

Calendar for submitting financial statements as of December 2019 was modified.

Through Circular 100-000003 of March 17, 2020, the Supersociedades made the determination to modify the calendar for the filing of financial statements of companies with cut-off as of December 31, 2019.

Thus, the presentation of financial statements that was to start on March 30, was postponed until Tuesday, April 14 and will go until Tuesday, May 12 of the current year, according to the last two digits of the company’s NIT, without considering the verification number.

Dian Procedures

The Dian also took measures for the performance of procedures and services, particularly in the contact points of the country. This was made known through a communiqué published on March 13, 2020.

Among the measures it is established that the entity has virtual services available for taxpayers to avoid their travel and attendance to places with large crowds of people. The services are the institutional portal, the chat and the national network of self-management kiosks. Additionally, there is a telephone hotline (571) 3556922.

On the other hand, the attention for procedures and services at the window will be exclusively for customers with appointments or expirations that day. Entry to the point of contact will be exclusively for the citizens who are the holders of the procedures, duly accredited representatives or attorneys-in-fact, without accompanying persons.

Care in working environments

On March 10, the Ministry of Labor, the Civil Service and the Ministry of Health issued Circular 18 of 2020, which provides instructions for intervention, response and care of COVID-19, complementary to those given in Circular 0017 of February 24, 2020 of the Ministry of Labor, applicable, mainly, to work environments.

Among the measures taken for workers who have recently arrived from abroad or have been in contact with patients with respiratory symptoms, it is recommended to authorize teleworking without this meaning the abandonment of the position. Also, it is invited to adopt flexible schedules for workers, in order to reduce the risk of exposure during peak hours in public transportation.

Likewise, it is recommended to reduce or avoid face-to-face meetings with concentrations of people in small places.

Employees may not be forced to take unpaid leaves of absence

Draft resolution issued by the Ministry of Labor establishes guidelines on the prohibition of employers to coerce workers to take unpaid leaves of absence.

Angel Custodio Cabrera, Minister of Labor, said that this circular seeks to “prevent abuses derived from coercion, which could be exercised by some employers so that their workers proceed to sign unpaid leaves”.

Additionally, he called on employers to be protective of employment and to show solidarity with their collaborators while this situation is overcome.

Likewise, it is explained that the worker cannot assume the economic burden by means of a discount on his salary or personal work, thus affecting his right to rest and that the option to request an unpaid leave must come freely and voluntarily from him.

Workers who have been laid off may now withdraw their severance payments due to COVID-19 emergency.

The National Government issued Decree 488 of March 27, 2020, which allows workers who stop receiving income, due to contract suspension or unpaid leave, due to the contingency that the country is experiencing due to COVID-19, to withdraw their severance payments. Since March 27, this population will be able to withdraw their severance payments in proportion to their savings and the duration of the quarantine.

“With the resources of the family compensation funds, we have made it possible for those people who are currently unemployed to go to these entities with the following requirements: they must be a formal worker who has been affiliated for more than one year to the compensation fund. This person has the right to receive two minimum salaries in the following two months”, explained the Minister of Labor, Ángel Custodio Cabrera.

Procedure for partial withdrawal of severance payments

Pursuant to Article 3 of Decree 488 of 2020, the Superfinanciera issued instructions so that affiliates of private funds may make partial withdrawals of their severance payments during the time that the events that gave rise to the emergency originated by COVID-19 continue, without having to do it in person.

Through External Circular 013 of March 2020, the SFC informed that, once the request for partial withdrawal of severance payments has been submitted, it will be effective for as long as the events that gave rise to the economic, social and ecological emergency generated by the pandemic continue.

The payment for partial withdrawal of severance payments will be limited to the balance available in the individual severance account of each member.

Measures to protect employment

The Minister of Labor, Ángel Custodio Cabrera, socialized Circular 021 of March 17, 2020, which contemplates measures to protect employment during the containment phase of COVID-19.

The document includes the Colombian legal system on labor matters, in which alternatives such as working at home; teleworking; flexible working hours; annual, early and collective vacations; and paid leave are set out.

Regarding teleworking, for example, it must be taken into account that the salary of the teleworker may not be less than that paid for the same work, in the same location and for the same performance, to the worker who renders his services at the work center.

As for the flexible working day, this may be established by the employer or set with the limits established by law, which indicates a maximum of eight hours per day and forty-eight hours per week; however, the mentioned limit may be distributed in a variable manner during the respective week, having as minimum four continuous hours and as maximum up to ten hours per day, without any surcharge for supplementary work.

Unemployment subsidy through compensation funds

Through the family compensation funds, the National Government will provide an economic amount for people who have lost their jobs during the current crisis. On April 2, 2020, Asocajas announced that they had already activated this insurance against unemployment.

“The unemployment subsidy is equivalent to two minimum wages that will be delivered in three months.”

The unemployment subsidy is equivalent to two minimum wages that will be delivered in three months. Each beneficiary will receive a total of three payments of $585,202, through the compensation fund to which he/she was affiliated.

As a requirement to access this benefit, the person must have been affiliated to a compensation fund for at least 12 months. Likewise, these people will be guaranteed social security and those who have two minor children will continue to receive the family subsidy.

Solidarity payment for informal workers

The National Government will also make a solidarity payment of $160,000 for close to 3 million informal workers, who have been affected by the quarantine.

This benefit will be delivered starting this week and will be made through bank transfers, money orders, cash, among other mechanisms.

Suspension of parafiscal taxes

It was also announced the postponement of payments and self-assessment of parafiscal contributions to the aviation, tourism, events and restaurant sectors, which from the point of view of the National Government have been the hardest hit in recent weeks.

What labor measures can employers implement?

It should be recalled that the Ministry of Labor determined the measures that employers can implement in order to comply with the Government’s guidelines regarding the prevention of COVID-19. Among these are teleworking, paid leave and modification of the working day.

Supersociedades resumed terms in judicial processes and administrative proceedings

As of April 1, 2020, Supersociedades resumed the judicial and administrative terms for the processes and actions carried out by the different delegations of the entity. Through Resolution 100-001101 of March 31, 2020, Supersociedades ordered the lifting of the suspension of terms.

During the suspension of terms, the entity made the necessary adjustments to its operating model and established protocols in order to advance such actions through virtual and technological channels and, thus, give continuity to the processes and actions, which are essential for the country’s companies.

UGPP suspends terms during health emergency

The Pension and Parafiscal Unit informed that the terms for parafiscal processes and actions are suspended until the sanitary emergency remains in force.

The entity issued Resolution 385 of April 1, 2020, through which it is established that the suspension of terms will apply to some processes and parafiscal actions.

Non-face-to-face meetings regulated

The Ministry of Commerce, Industry and Tourism published Decree 398 of March 13, 2020, which gives the approval for the development of non face-to-face meetings of shareholders’ meetings, general shareholders’ meetings or boards of directors.

The Supersociedades also announced that under no circumstances will it be possible on April 1, 2020 to validly hold meetings in their own right.

Source: Actualícese