Through Decree 815, the Ministry of Finance and Public Credit modified the PAEF
1. Purpose of the PAEF: it remains the same, but with a temporary duration of 4 months. The duration of the Program was increased by 1 month.
2. Beneficiaries of the PAEF:
2.1. Individuals, legal entities, consortiums, and joint ventures that meet the following requirements:
2.1.1. Have been legally incorporated prior to January 1st, 2020.
2.1.2. Have an enrollment in the commercial registry. This registration must have been made or renewed at least in 2019.
2.1.3. Demonstrate the need of the state contribution, certifying a diminishment equal to or higher than 20% of their income. The Ministry will determine the method of calculation of this diminishment.
2.1.4. Have not previously received this contribution in four times.
2.1.5. Have not been obliged, in the terms of the Decree, to restitute the PAEF state contribution.
2.2. Non-profit entities that are required to file an income tax return or alternatively, a statement of income and assets, as well as exogenous information on magnetic media for the taxable year 2019 and the National Society of the Colombian Red Cross and its federated system, must provide a copy of the Single Tax Number.
2.3. Individuals and legal entities with an operating license of non-official educational establishments of formal education. For this purpose, they must have an operating license issued by the Ministry of Education. For the verification of the application process, the Ministry of National Education must send to the Administrative Unit of Pension Contributions and Payroll Taxes (UGPP for its acronym in Spanish) the list of the establishments that meet this requirement.
Beneficiaries must have a deposit product in a financial institution. For the purposes of this Program, financial entities shall be understood as those entities supervised by the Financial Superintendence of Colombia or by the Superintendence of Solidarity Economy, which are authorized to offer deposit products.
Employees who meet this last requirement and who have been subject to an employer substitution may be considered for the calculation of the state contribution when the beneficiary of the Program is the new employer resulting from said substitution. In this case, to verify the income decrease, the income of the replaced employer and the new employer will be compared, according to the calculation methodology issued by the Ministry of Finance and Public Credit. The UGPP may determine the additional documents required for the verification of this condition and of the employer substitution, during the verification process of the corresponding application and during the inspection process.
3. Duration of the PAEF: The PAEF will be in force during the months of May, June, July, and August 2020. The beneficiaries can only request the state contribution, one time per month and for up to four months.
4. Income tax withholding: To the extent that the PAEF subsidy is conditional on the payroll payment, payments or credits on account that have been made or are made by the financial entities to the beneficiaries of the Program by way of state contribution are not subject to income tax withholding. The foregoing, without prejudice to the income tax charged to the PAEF beneficiaries derived from said state contribution.