- Posted by Colombia
- On Thursday June 11th, 2020
- 0 Comments
The second cycle of social distancing measures to prevent the spread of Covid-19 continues in Colombia until June 30. Regional and local leaders have been granted the freedom to gradually resume economic activities in their territories. Currently the government’s priority is to focus on energizing the business sectors.
As for air transportation, airports will continue to be closed until September 1, but reservations can now be made at travel agencies and with airlines directly.
Public and private universities and colleges will continue in virtual classes until August. Starting this month, classes with laboratory curriculum will be prioritized.
Immigration procedures, such as a foreigner ID, registration for minors, certificates of migratory movements and safe passage remain suspended until July 1, 2020.
The following is a summary of the economic impact the current pandemic has had on a variety of industrial sectors:
Energy sector: The oil sector continues to operate and is exempt.
Transportation sector: The airline Avianca (50% passengers and 50% cargo) filed for bankruptcy in the US. LATAM is subject to US bankruptcy law, affecting its subsidiary in Colombia
Wholesale and retail trade, including the operation of shopping malls and real estate activities, hairdressing services, public parking lots, museums and libraries, among others, have opened their doors since June 1, except in Bogota, Cartagena and Cali. In these 2 major cities these sectors may open on June 15th.
- Tax collection such as as corporate tax, surcharges to banks, normalization tax and equity tax is postponed
- Additional time is provided for legal entities to file and pay income tax.
- VAT collection (8%) is suspended until December for bars, restaurants, patisseries and cafes.
- VAT (19%) is suspended on the rent of commercial properties which have not been opened due to the isolation measures.