New benefits, reliefs and tax incentives for the District of Santiago de Cali

On June 8, 2021, the Cali City Council issued Agreement No. 0495 by means of which the Mayor was granted pro-tempore powers to adopt benefits, reliefs and tax incentives within the framework of the sanitary emergency derived from the COVID-19 pandemic.

In accordance with the above, the main benefits adopted in the District of Santiago de Cali on the occasion of such powers are presented below:

1. Additional discount on the Unified Property Tax (IPU) for the year 2021.

In addition to the 15% discount for prompt payment, a 35% discount [2] on the IPU will be granted to:

Taxpayers of the Industry and Commerce Tax (ICA) whose gross income has had a decrease of at least 20% in the taxable year 2020 with respect to the year 2019.
Capital rentier individuals who demonstrate a decrease of 20% in their income from leasing of real estate for commercial use.
Lessors of real estate for commercial use who have agreed with their lessees a decrease in the lease fee of at least 10% for the taxable year 2021 with respect to 2020.
ICA taxpayers who have filed their tax return for the taxable year 2020 within the established deadlines and who develop their commercial activity in a residential property owned by them.

This discount will be in force until October 31 of this year and in order to apply for it, the beneficiary must present in person, and until July 30, 2021, a sworn written request attaching the documents that accredit him/her as beneficiary, which vary for each case.

Likewise, it is necessary to indicate that it is an indispensable requirement that the property object of the benefit is in good standing with the taxable years of 2020 and previous years.

Discounts for the payment of delinquent interest on territorial taxes.

Taxpayers with overdue balances for the payment of district taxes (taxes, fees, contributions and fines) may access discounts on late payment interest according to the date on which the total payment of the obligation is made, as follows:

If it cancels the totality of the obligation by effectiveness:	Discounting of interest in arrears
From the entry into force of the agreement until August 31, 2021	100%
From September 1 through October 31, 2021	80%

This benefit is also available to those who have a payment agreement in force without a declaration of default, for which they must request the deactivation of the agreement and pay the totality of the obligation contained in the payment agreement.

Finally, it should be mentioned that this incentive does not apply for the Unified Property Tax for the taxable year 2021 or for the ICA for the year 2020.

1. Discount for the payment of delinquent interest on the IPU for the year 2020.

Taxpayers who at the effective date of the agreement owe only the Unified Property Tax for the taxable year 2020 may obtain a 100% discount on the late payment interest if they make the payment of the IPU for 2020 until August 31, 2021[3], including payments by installments or installments.

2. Temporary requirements to belong to the simplified regime of Industry and Commerce only for the year 2021.

As a temporary measure, by means of Agreement 495 of 2021, the ceilings to belong to the Simplified Regime of Industry and Commerce were increased from 1,500 UVT ($54,462,000) to 3,000 UVT ($108,924,000), indicated in paragraphs 1°, 5° and 6° of article Sixteen of Agreement 0469 of 2019.

It should be noted that this benefit applies only to individuals who meet all the requirements to belong to the Simplified Regime of ICA, with which they will not be obliged to file only and exclusively the annual private return for the taxable year 2021 fiscal year 2022.

3. Other provisions.

For the beneficiaries of the additional 35% discount, mentioned in numeral 1° of this circular, the term of the discount for prompt payment of the UPI for the year 2021 was extended until October 31, 2021, being able to pay by installments or installments until September 30, 2021[4].

This term is different from the one applicable to the rest of the obligors, who may avail themselves of the 15% discount for prompt payment in the cancellation of the IPU for the year 2021 until August 31, including payments by installments or installments [5].

Finally, it should be recalled that in no case shall the concurrence of benefits be applicable in accordance with the provisions of Article 23 of Law 383 of 1997.

[1] These were duly regulated by Decree No. 0377 of June 10, 2021, as amended by Decree No. 0442 of June 30, 2021.

[2] Decree No. 0377 of June 10, 2021, Art. 1.

[3] Decree No. 0442 of June 30, 2021, Art. 2.

[4] Decree No. 0377 of June 10, 2021, Art. 1, Paragraphs 1° and 2°.

[5] Decree No. 0442 of June 30, 2021, Art. 1.