In addition, a mechanism for portfolio recovery was created, providing benefits for taxpayers in terms of interests, penalties and capital of unpaid local taxes.
By means of Decree 678 of May 20, 2020, the National Government authorized territorial entities to:
1. Defer payment of taxes of a territorial nature.
In accordance with section 6 of the Decree, governors and mayors are empowered, during the term of the emergency established by Decree 637 of May 6, 2020, to defer in up to 12 monthly, interest-free installments the payment of territorial taxes, with the last installment corresponding to the month of June 2021.
2. Portfolio recovery in favor of territorial entities.
In accordance with section 7 of the Decree, a portfolio recovery mechanism is established so that taxpayers may access benefits in relation to territorial taxes pending payment at the entry into force of the Decree.
The benefit are:
- Until October 31, 80% of the capital will be paid without interest or penalties.
- Between November 1, 2020 and December 31, 90% of the capital will be paid without interest or penalties.
- Between January 1, 2021 and May 31, 2021, 100% of the capital will be paid without interest or penalties.
Finally, these measures are applicable to administrative or judicial proceedings. Also, the territorial entities must enable electronic means of payment that facilitate the access of taxpayers to the measures adopted in this article.