According to the DIAN, Colombia's tax authority, yes: if on August 10, 2026 your subsidiary had overdue tax obligations, returns it never filed, or returns that need correcting. Legislative Decree 1419 of 2026 cuts penalties to 15% and late-payment interest to 4.5% a year for anyone who pays by November 19, 2026. Article 1 of the decree limits its measures to the municipalities hit by the August earthquake, while the DIAN holds that these benefits apply nationwide. That difference belongs in the decision.
Where does this come from?
On August 10, 2026, an earthquake struck several regions of Colombia, and the government declared a state of emergency. Under that emergency, it can issue legislative decrees: decrees with the force of law, subject to automatic review by the Constitutional Court.
Decree 1419, issued on September 17, 2026, is one of them. Its Chapter III reduces penalties and interest owed to the DIAN, temporarily, for obligations that existed on August 10.
What does the decree allow?
| Situation on August 10, 2026 | What you pay to qualify | Article |
|---|---|---|
| Tax, customs or foreign-exchange obligation overdue | 100% of the obligation, late-payment interest at 4.5% a year, and 15% of the penalties | Art. 9 |
| Tax return never filed | File it with the late-filing penalty cut to 15%, the full tax, and interest at 4.5% a year | Art. 10(1) |
| Filed return that, once corrected, raises the tax due, lowers a refund or lowers tax losses | Correct it with the correction penalty cut to 15% and the full tax, with no late-payment interest | Art. 10(2) |
| Other formal obligations missed, such as information filings | Pay the penalty cut to 15% and comply with the obligation | Art. 10(4) |
Article 10 also covers corrections of customs declarations, and article 11 opens settlement of tax disputes already in court (see below).
The deadline for all of them is November 19, 2026. It is the term set by the decree.
Does it apply if your subsidiary is outside the earthquake zone?
This is the point to look at carefully.
What the decree says. Article 1 provides that its measures apply exclusively in the municipalities affected by the earthquake, and to people whose damage has been certified.
What the DIAN says. In its Press Release 122 of September 19 and in a ruling of September 21, the DIAN holds that Chapter III (articles 9 to 11) and article 13 apply to every taxpayer in the country. Its reasoning: these are revenue-collection measures, and to work as such they have to be open to everyone.
What is still pending. The Constitutional Court reviews every legislative decree automatically, and it has yet to rule on Decree 1419.
In practice, the DIAN is the authority that receives the payment and applies the reduction, and its position is in writing. A company that uses the benefit does so under that reading, and it is worth documenting the decision, including for the parent company's files.
What conditions apply?
- Pay 100% of the principal obligation: tax, withholding or duty.
- Pay late-payment interest at the 4.5% annual rate the decree sets.
- Pay 15% of the penalties. The amount paid can never fall below the minimum penalty for the tax year in which it was assessed.
- Pay in cash. Offsets against refunds or balances owed by the DIAN are excluded as a means of payment.
- Existing payment plans qualify for the balance still outstanding.
- Do it by November 19, 2026.
Article 14 adds that failing a requirement, or claiming a reduction the company was never entitled to, cancels the benefit, and that the DIAN keeps all its audit powers.
What about large taxpayers?
The DIAN designates some companies as large taxpayers (grandes contribuyentes). Article 8 excludes them from the measures in Chapter II of the decree: a fast-track payment plan and the rescheduling of existing plans. The reduction of penalties and interest sits in Chapter III, which carries no such exclusion.
What about tax disputes already in court?
Article 11 allows the DIAN to settle tax, customs and foreign-exchange disputes in which a lawsuit was filed and admitted before August 10, 2026, with no final judgment yet:
- At first instance: pay 100% of the tax and 15% of the penalties, with interest at 4.5% a year.
- At second instance: pay 100% of the tax and 20% of the penalties, with interest at 4.5% a year.
The settlement request must be filed by November 19, 2026.
What this means for the parent company
- It is a window with a fixed end. After November 19, penalties and interest return to their full amounts.
- It rewards a quick review. The benefit only helps if someone checks the subsidiary's open items before the deadline: overdue balances, missing filings and corrections.
- It calls for a documented decision. Given the gap between the decree and the DIAN's reading, the file should show what was paid, under which article, and why.
What to do with this
- List the open items as of August 10: overdue obligations, returns that were never filed, and income tax, VAT or withholding returns that would need an upward correction.
- Run both numbers: the cost of catching up with the reduction and without it.
- Decide with the difference in interpretation in view, and document it.
- Pay or file before November 19.
Sources
- Legislative Decree 1419 of September 17, 2026 (Official Gazette 53,630), articles 1, 8, 9, 10, 11 and 14 — DIAN regulatory database
- DIAN, Press Release 122 of September 19, 2026 — dian.gov.co
- DIAN, ruling of September 21, 2026 on the territorial scope of Decree 1419 — link pending: the ruling has yet to appear in the DIAN regulatory database