June 8th, 2020

From July 1, 2020, to June 30, 2021, the withholding tax rate on payments for fees, commissions and services for the inclusion of the activities of the Satellite Account for Culture and the “Orange Economy” of the National Administrative Department of Statistics -DANE- will be 4%.

Likewise, from June 4th, 2020 to June 30th, 2021, public cultural incentives granted by the Ministry of Culture and the local authorities responsible for culture, will not be subject to withholding tax.
In addition, from July 1st,2020 and until June 30th, 2021 certain artistic services provided for audiovisual productions and performances related to the performing arts will be excluded from VAT. To such purpose, the one responsible for the tax must submit a monthly sales report to the Tax Office-DIAN, detailing the taxable period, the excluded service corresponding to the activities indicated in the decree and the value of the operation.

Moreover, it modified the timeframes for declaring and paying the contribution of public shows and performing arts corresponding to the sale of tickets and delivery of attendance rights. Thus, those responsible for this contribution will be able to declare and pay the contribution until 30 March 2021.

In this regard, it also established that withholding agents will not be liable to withhold tax on sales made before December 31, 2020. However, they will have to monthly inform the Ministry of Culture about the tickets sold and the rights of attendance given.

Finally, the decree also established that occasional producers shall not be required to provide the insurance policy covering payment of the contribution for the events they hold until September 30th, 2021. This as long as the tickets and rights sold are made through an authorized operator.


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