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Tax update

Legislative Decree 1419 of 2026: tax relief for taxpayers affected by the earthquake, and nationwide benefits

Colombia's Decree 1419 of 2026 grants tax relief to those affected by the August 10 earthquake, but the reduction of penalties and late-payment interest is available to any taxpayer in the country. Which measure applies to whom, and the November 19, 2026 deadline.

We are pleased to share a summary of Legislative Decree 1419 of September 17, 2026. Through this decree, the Ministry of Finance and Public Credit adopted tax, customs and foreign exchange measures under the State of Economic and Social Emergency declared after the earthquake of August 10, 2026. According to the report of the National Disaster Risk Management Unit cited in the decree, the earthquake left 335 people dead, 4,516 injured and caused severe damage to housing and public infrastructure in several departments.

The key to understanding this decree is that not all of its measures have the same scope. Some are reserved for those whose tax domicile is in the municipalities declared in emergency and who can demonstrate direct damage; others apply to any taxpayer in the country, even outside the affected area. This distinction is not always clearly explained, and the DIAN itself had to clarify it in a recent ruling.

What you need to know

  1. Key dates for your calendar

    1. August 10, 2026

      Cut-off date for tax domicile (RUT) and for the arrears that give access to the reduction of penalties and interest under article 9.

    2. September 17, 2026

      The decree is issued and takes effect; this is also the cut-off date for arrears under the short-form payment arrangement of article 5, discussed below.

    3. November 19, 2026Deadline

      Deadline to apply for the short-form payment arrangement, the rescheduling of payment arrangements, the reduction of penalties and interest, and settlement of administrative litigation.

    4. December 31, 2026

      The special treatment for donations to affected individuals and for donating credit balances to the Nation expires.

  2. Who does each set of measures apply to?

    Measures for “affected persons”Chapter II
    Those whose tax domicile, according to the RUT or the Chamber of Commerce registry, was located on August 10, 2026 in the affected municipalities, as listed in Situation Report No. 36 of the crisis room of the National Disaster Risk Management Unit (UNGRD) (preliminary cut-off at 12:30 on August 19, 2026), as well as other municipalities for which specific damage caused by the earthquake can be precisely demonstrated.
    Nationwide measuresChapter III and art. 13
    In ruling 100208192-1737 of September 21, 2026, the DIAN clarified that the reduction of penalties and interest (arts. 9 to 11) and the donation of credit balances (art. 13) are not limited to affected persons located in the affected municipalities. They apply to all taxpayers, customs users and foreign exchange obligors in the country that meet the conditions of each applicable benefit.

  3. Measures only for persons affected by the earthquake located in affected municipalities

    Short-form payment arrangementArt. 5
    Until November 19, 2026, taxpayers may apply for payment arrangements for overdue tax obligations without having to provide collateral for terms of up to 24 months. For terms of between 24 and 36 months, personal guarantees are accepted if the debt does not exceed 6,000 UVT. In all cases, at least 10% of the total debt must be paid when the arrangement is signed, and the applicable late-payment interest rate is 4.5% per year.
    Rescheduling of existing arrangementsArt. 6
    Those who already had a payment arrangement on August 10, 2026 may reschedule, on a one-time basis and for up to 12 months, the instalments falling due between August 10 and December 31, 2026, keeping the existing guarantees. The request is not considered a default.
    Rescheduling of insolvency arrangementsArt. 7
    Applies to those in insolvency, reorganization, debt negotiation or liquidation proceedings whose DIAN obligations are included in a payment agreement within those proceedings. It allows the term to be extended and the frequency of instalments to be changed, without forgiving, remitting, reducing or novating the obligation.
    Donations to affected individualsArt. 12
    Up to 2,600 UVT per beneficiary in donations or in-kind payments received directly by an individual who qualifies as an affected person do not constitute income or occasional gain for the recipient. They must be received between August 10 and December 31, 2026 and used to address the emergency, and the donor must issue a certificate stating the recipient, the asset and its value. They are not subject to withholding tax. The benefit is for the recipient, not the donor: the decree creates no deduction or tax credit for the person donating.

  4. Nationwide measures

    Reduction of penalties and late-payment interestArt. 9
    For obligations in arrears on August 10, 2026, taxpayers may pay 100% of the obligation, interest at a reduced rate of 4.5% per year, and only 15% of the penalties and their adjustment.
    Reduction for unfiled or corrected returnsArt. 10
    For returns that were not filed or that are corrected by November 19, 2026, the late-filing or correction penalty is reduced to 15%, without prejudice to full payment of the tax and the reduced interest. It also applies to formal, foreign exchange and transfer pricing obligations.
    Settlement of administrative litigationArt. 11
    The DIAN may settle ongoing court proceedings with discounts of 85% (first instance), 80% (second instance, or penalties with no tax in dispute) and 70% (improper refunds or offsets), provided the remaining balance and, where applicable, 100% of the tax in dispute are paid.
    Donation of credit balancesArt. 13
    Until December 31, 2026, any taxpayer may donate to the Nation its credit balances eligible for refund or offset, expressly and irrevocably waiving them. The donation entitles the taxpayer to the tax credit under article 257 of the Tax Code and may not also be treated as a cost or deduction.

  5. Points you may be interested in

    Do not confuse the two donation mechanisms
    Article 12 exempts the recipient of a donation (an affected individual) from tax; article 13 grants a tax credit to the donor who donates its credit balance to the Nation. They benefit different parties and are not interchangeable.
    The reduction of penalties and late-payment interest does not require being in the affected area
    In practice, this is the decree's most far-reaching benefit: any taxpayer in the country with obligations in arrears on August 10, 2026 may access the reduction of penalties and interest under article 9, even if its tax domicile was never in a municipality declared in emergency. It is worth reviewing your overall tax position, not only your operations in the affected area.
    Loss of the benefits
    Falsehood, simulation, concealment, improper use of funds or failure to meet the decree's requirements result in loss of the treatment from the date of the event, with collection of the unpaid amounts, interest, penalties and enforcement of guarantees, without prejudice to criminal, fiscal and disciplinary liability. The DIAN retains its full audit powers.

  6. What should I do now?

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