The Colombian government issued Decree 939 of 2021 which authorizes the National Tax Authority (DIAN) and other state entities to make reductions in capital, interest, penalties, and fines, among others, to past-due debts of companies that took advantage of the bankruptcy regime established in Decree 560 of 2020 due to the health emergency started by COVID-19. These bankruptcy reductions will not be applied to: (i) withholding tax, (ii) value added tax (VAT), or (iii) debts derived from conviction in a fiscal responsibility proceeding advanced by the National Comptroller Authority.
Article 18.104.22.168.7.4 of Decree 939 establishes that the DIAN or the state entity that makes the discount must consider: the payment plan established in the reorganization agreement, the behavior of the debtor, and the offset of credits. The payment plan is a vital part for the analysis and estimation of these incentives. If the debt is deferred for one (1) to three (3) years, a capital reduction of forty percent (40%) will be applied. If debt is deferred for a period of five (5) years, the company can opt for a reduction of twenty percent (20%). Finally, if the debt is deferred up to a maximum of seven (7) years, a discount of five percent (5%) will be applied. In other words, the longer the payment is postponed, the lower the discount.
Finally, this decree creates a committee for the approval of reductions, which will be made up of at least three (3) members who belong to the DIAN or to other state entities that can apply these benefits. The committee will be responsible for approving the reductions requested by the companies within a maximum period of sixty (60) business days from the date of filing of the request by the debtor.
If your company or any subsidiary is in a bankruptcy process, BéndiksenLaw can help you determine if any of the discounts established by Decree 939 are applicable to you.
Contact us for more information.