April 17th, 2020

The Ministry of Finance and Public Credit issued Decree 573 of April 15, 2020, and established tax measures in relation to the Agricultural Guarantee Fund ("FAG").

According to the Decree, the commissions for the guarantee service granted by the FAG will be excluded from the Value Added Tax (“VAT”) until December 31, 2021. 

To apply the VAT exclusion, the invoice issued must indicate "Service excluded - Decree 417 of 2020".
In addition, the withholding applied on payment or accrual of the guarantee commissions granted by the FAG will be at a rate of 4% until December 31, 2021. In accordance with the Decree, this rate applies to guarantees granted by the FAG focused only and directly to face the adverse consequences generated by the Coronavirus crisis.

SEE DecreE 573 OF 2020

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