Colombia Cuts Tax Penalties 85% Until 19 Nov

COLOMBIA · TAXES

Colombia’s tax agency is offering a one-off discount on penalties until Thursday 19 November 2026. The tax itself is not reduced, so the offer helps most those who owe fines on top of unpaid tax.

Anyone whose tax debt was already overdue on Monday 10 August 2026, the day of the earthquake, can pay only 15% of the penalty, an 85% cut, if they also pay the full tax and interest by 19 November. The offer comes from Decree 1419 of 17 September 2026, a decree with the force of law issued under the emergency declared after the quake.

For US readers it matters if they or their companies hold Colombian tax debts, subsidiaries or property. The nationwide relief applies to taxpayers whatever their address, but only for obligations that were already overdue on 10 August.

What the Offer Covers

A taxpayer who owed tax, or had a return still to file, in arrears on 10 August 2026 pays 15% of the penalty and of its inflation update. The taxpayer also pays late-payment interest at 4.5% a year and 100% of the tax itself.

Someone who filed a return by 10 August 2026 and now corrects it pays only 15% of the penalty, with no interest charged. The relief covers tax, customs and foreign-exchange obligations, and debts that fell overdue after 10 August do not qualify.

Taxpayers who are owed refunds or offsets can donate those balances to the state to finance disaster relief. The donor gets a tax credit in the income tax return, provided the donation is made by 31 December 2026.

Relief for Court Cases

If a lawsuit against DIAN was filed before 10 August 2026 and is at first or single instance (conditions apply, so confirm with DIAN), the taxpayer settles by paying 100% of the disputed tax with interest at 4.5% a year plus 15% of penalties, an 85% cut. At second instance, the taxpayer pays 100% of the tax and 20% of penalties, also with 4.5% interest, an 80% cut.

Extra Help in the 16 Quake-Hit Departments

Extra relief goes to taxpayers whose registered tax address on 10 August 2026 was in one of 16 affected departments. The address is box 12 of the RUT, the national tax registry, and the decree sets the exact municipalities covered.

The departments are Antioquia, Bolívar, Caldas, Caquetá, Cauca, Chocó, Cundinamarca, Huila, Nariño, Norte de Santander, Quindío, Risaralda, Santander, Sucre, Tolima and Valle del Cauca. Large taxpayers, known as grandes contribuyentes, are excluded from these zone measures, but not from the nationwide penalty cut.

Taxpayers in these departments who could not pay after the quake and fell into arrears can ask for a payment plan of up to 24 months with no guarantee, or up to 36 months with a personal guarantee. The guaranteed plan is open to debts of up to COP 314,244,000 (about US$96,000 at the official rate of COP 3,269.88 per US$ on 10 November 2026).

Interest is 4.5% a year, and at least 10% is paid on signing. Those who were current on an existing payment plan on 10 August can reprogramme instalments due by 31 December 2026 once, by up to 12 months, if they keep their guarantees and certify a cash need.

Gifts Received After the Quake

Individuals directly affected by the quake can receive donations or in-kind support of up to COP 136,172,400 (about US$41,600) between 10 August and 31 December 2026 without it counting as taxable income. The money must meet disaster needs, and the donor must certify it.

How Big the Debt Is

DIAN says 198,182 taxpayers owe 643,332 pending obligations totalling COP 22.9 trillion (about US$7.0 billion). The largest balances sit with its Medellín regional office at COP 8.1 trillion (US$2.5 billion) and its Cali regional office at about COP 5 trillion (US$1.5 billion).

Bogotá and Bucaramanga follow with COP 1.1 trillion each (US$340 million), and Cúcuta holds just over COP 1 trillion (about US$310 million). Together the five hold about COP 16.4 trillion (US$5.0 billion).

DIAN director general Andrés Felipe Velásquez Reyes invited taxpayers in a statement on 22 October to use this “exceptional opportunity”, saying that doing so contributes to the national effort to rebuild the areas hit by the quake (our translation). Our reports on the first month after the earthquake explain the damage behind the relief.

What It Means for You

If you owe penalties, check whether the obligation was in arrears on 10 August 2026, because that date decides eligibility. DIAN publishes an ABC guide, the Abecé, and points applicants to www.dian.gov.co and its service points.

The tax contact line is +57 601 489 9000, open Monday to Friday 8 a.m. to 7 p.m. and Saturday 8 a.m. to 12 noon, Colombia time, which matches US Eastern Standard Time. We have not seen the exact forms or payment slips, so confirm the steps with DIAN.

Foreigners should ask a Colombian tax adviser how the decree applies to them, because we do not advise on specific cases. The 30 April deadline still circulating online belongs to the earlier Decree 0240 of March 2026 and has expired, while DIAN gives 19 November 2026 as the current deadline.

Cali, home to one of the largest balances, is explained in our guide to the city. More is in our Colombia coverage.

What Is Not Known

It is not known how many taxpayers will use the relief, and DIAN has not published a revenue target for the window. Whether the 19 November deadline will be extended is also open, since only a new decree could change it.

The exact application steps are not in the documents we have read, so applicants should ask DIAN directly. We also cannot say how many of the 198,182 taxpayers with debts qualify.

Frequently Asked Questions

Who qualifies for Colombia’s tax penalty relief?

Any taxpayer nationwide who owed taxes, or had a return still to file, in arrears on 10 August 2026. Taxpayers with a registered address in 16 quake-hit departments also get longer payment plans.

Is the tax itself discounted?

No. Taxpayers pay 100% of the tax, plus interest at 4.5% a year and only 15% of the penalty, an 85% cut in penalties.

What is the deadline?

DIAN says the benefits stay in force until Thursday 19 November 2026. That is the last day to apply, pay or file.

Does the relief apply to foreigners?

The nationwide relief covers any taxpayer with an obligation overdue on 10 August 2026, wherever the person lives. Foreigners should ask a Colombian tax adviser about their own case.

Sources: DIAN, Colombia’s tax and customs agency, Decreto Legislativo 1419 of 17 September 2026 and its FAQ page; DIAN press release 122 of 2026; DIAN press release 133 of 2026 (22 October 2026); DIAN Abecé guide; Superfinanciera de Colombia, the financial regulator, official exchange rate for 10 November 2026 (datos.gov.co series 32sa-8pi3).