On November 26, 2019, the presentation of the Tax Reform was made that would replace Law 1943 of 2018 (Financing Law) before the Congress of the Republic in Colombia. In the debate the text proposed for the bill was presented " Through which standards are adopted for the promotion of economic growth, employment, investment, strengthening of public finances and the progressivity, equity and efficiency of the system tax, in accordance with the objectives on the matter promoted by Law 1943 of 2018 and other provisions are issued. "

Among the proposed modifications to the text of the Financing Law are:

• that to comply with the ceilings established to belong to the common regime of value added tax (VAT), in relation to the amount of bank consignments, only those that are the product of activities taxed with said tax
• that not all taxpayers who sign up for the SIMPLE tax system become responsible for VAT for this single fact
• the elimination of the national tax on the consumption of real estate, which falls on the disposal, to any title, of real estate whose value exceeds the amount of 26,800 Units of Tax Value (UVT)
• modifications to some rates applicable to dividend tax
• adjust the generating event of the estate tax for its application in the year 2020
• modifications to the mega-investment regime
• reduce the percentage of presumptive income for the 2020 taxable year from 1.5 percent to 0.5 percent
• modifications to the principle of favorability in the collection stage
• extend the audit benefit to 2021
• modify the process related to the return of balances in favor and the deadlines for taxpayers to correct their tax returns
• the establishment of the tax normalization tax for the taxable year 2020
• establish a temporary validity for the special VAT exemption

It is important to keep in mind that for this project to be promulgated as a Law, in accordance with the provisions of article 147 of law 5 of 1992 and article 157 of the Political Constitution, namely: 1) be officially published by the Congress before giving course in the respective Commission; 2) be approved in the first debate in the corresponding permanent Constitutional Commission of each Corporation (Senate and Chamber); 3) That it has been approved by the Plenaries of each Corporation in the second debate. (Senate and House) and 4) have obtained the sanction of the government. Finally, it is recalled that before the end of this year, these requirements and the publication of Law before in the Official Gazette must be met .