Senate Approval of Tax Reform Bill which amends Article 855 of the Tax Statute regarding refunds and/or compensation for tax credit balances

The Senate of the Republic has approved a bill in the second debate to amend Article 855 of the Tax Statute, specifically regarding refunds and/or compensation for tax credit balances.

The bill reduces the timeframe for the Tax Administration to issue refunds for tax credit balances related to income taxes. This period would change from 50 days following the request submission to 30 days from the date of filing the income tax return, without requiring a separate request, specifically for the Income and Complementary Tax.

Additionally, a new clause mandates that the DIAN (Colombian Tax Authority) must establish a system enabling taxpayers to accept automatic refunds or request compensation at the time of filing their income tax return.

The bill also proposes including salaried individuals or service providers who do not present a high risk per DIAN’s risk analysis system in the automatic refund process.

The bill will proceed with the House of Representatives for further consideration.