DIAN Tax Penalties 2026: How to Avoid Them and Respond
## The most common tax penalties
DIAN can impose penalties for various types of non-compliance. The most common are:
1. Late-filing penalty For filing returns after the deadline (income tax, VAT, withholding tax): - 5% of the tax owed per month or fraction of a month late - Minimum: 10 UVT if there's tax owed; 1 UVT if there isn't - Maximum: 150% of the tax
2. Penalty for failing to file If DIAN detects that you should have filed and didn't: - It can issue a formal notice requiring you to file - If you don't respond: a penalty of 10% of the period's gross income, or double any balance in your favor if applicable
3. Penalty for inaccuracy For errors or omissions in a return that result in a lower tax: - 100% of the difference between the tax determined and the tax declared - Reduced if corrected before or during the process
4. Penalty for not invoicing or invoicing incorrectly - Closure of the establishment for 3 days (first offense) or up to 30 days (repeat offense)
5. Penalty for accounting-book issues For not keeping them or keeping them improperly: up to 0.5% of the previous year's net worth.
The UVT value in 2024
The UVT (Tax Value Unit) for 2024 is $47,065 COP. All penalties are expressed in UVT to preserve their real value.
Voluntary correction: significant discounts
DIAN allows you to correct a filing before being formally required to, with reduced penalties:
| When you correct | Reduction |
|---|---|
| Before a formal notice | 50% of the penalty |
| After a formal notice, before a special assessment | 75% |
| After a special assessment, before an official settlement | 50% |
| After an official settlement | 25% |
The takeaway is clear: correcting voluntarily as early as possible dramatically reduces the penalty.
DIAN's penalty process
Special assessment DIAN notifies you that it plans to modify your tax return. You have 3 months to respond with arguments and evidence.
Extension of the assessment If DIAN needs more information, it can extend the assessment. You get another 3 months.
Official review settlement If DIAN doesn't accept your arguments, it issues an official settlement that modifies your return and determines the tax and penalty owed.
Appeals Against the official settlement you can file: 1. A motion for reconsideration with DIAN (2 months to file) 2. A lawsuit before the Council of State (an action for nullity and restoration of rights)
Termination by mutual agreement
Tax conciliation (article 118, Law 2010) lets you close administrative processes by paying the disputed tax and a reduced portion of the penalty and interest. It's a valuable option for closing disputes at lower cost.
Did you receive a special assessment, a DIAN penalty, or do you have outstanding tax debts? The deadlines to respond are short, and mistakes in your response can be costly. We can guide you.
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