Economic reactivation Bill

The bill establishes the following:

• Streamlining procedures and sustainable economic reactivation.
• Tax benefits and financial relief.
• Innovation in the financial system.
• Promotion of infrastructure.
• Financing for climate action and sustainable development.
• Tax improvements for equity and productivity.

Specifically, regarding tax benefits, the following is proposed:

• Temporary reduction of DIAN penalties and interest: For tax, customs, exchange, parafiscal, and other obligations in arrears as of December 31, 2024, a reduction of up to 80% of penalties and interest will apply if payment is agreed upon by June 30, 2025.
• Reduction of penalties and interest in UGPP: In sanctioning and determination processes carried out by the UGPP with firm obligations, whose non-compliance was aggravated by the COVID-19 pandemic, penalties will be reduced to 10% and the default interest rate will be 10% of the current bank rate, provided that payment or a payment facility is agreed upon before June 30, 2025. This reduction does not apply to contributions and interest of the General Pension System, and in case of non-compliance, interest and penalties will be recalculated according to the Tax Statute.
• Contentious-administrative conciliation in tax, customs, and exchange matters: The DIAN is authorized to reconcile contentious-administrative processes in tax, customs, and exchange matters with taxpayers, responsible parties, and users who have filed lawsuits before December 31, 2024. Penalties and interest can be reduced by up to 90% depending on the stage of the process, provided that 100% of the disputed tax and the remaining percentage are paid. The request must be submitted before May 31, 2025, meeting requirements such as prior admission of the lawsuit, payment of obligations, and absence of a final judgment. Restrictions apply to delinquent debtors under previous laws, processes in certain stages, and penalties related to pensions. The creation of conciliation committees in the DIAN and territorial entities to manage these processes is also allowed.
• Exclusion of VAT on hotel services: Value-added tax (VAT) is exempted – with the right to refund and compensation – for hotel services provided in municipalities with a population of fewer than 200,000 inhabitants, for four (4) years following the enactment of this Law, according to the specified CIIU codes.
• VAT benefit for the replacement of the vehicle fleet: Numerals 4 and 5 of Article 477 of the Tax Statute are modified, granting a one-time VAT exemption to small transporters who replace up to two (2) vehicles, conditioned on the adoption of less polluting or electric technologies until December 31, 2029.