Innovation of the means of Tax Payment, a Tax Administration Challenge

Given the pandemic situation that our country is currently experiencing, it is evident the need to accelerate the digitalization of the operations carried out by the Tax Administration and the reduction of costs for both the taxpayer and the Administration, thereby seeking to mitigate the loss of collection.

The innovation of the means of payments is a challenge for the Tax Administration; it constantly works hand in hand with the financial sector, in the search for digital solutions that are aligned with the needs of taxpayers to provide technological solutions that facilitate compliance of tax obligations.

One of these alternatives is the payment of taxes through online credit offered by the entities authorized to collect, a payment mechanism that was implemented by the National Tax and Customs Directorate -DIAN in the month of September 2020, and that allows individuals to pay their taxes immediately, through access to credit offered by the different entities authorized to collect, without having to go to the financial institution or wait several days for the result of the credit study once they have presented a significant volume of documents as a requirement for the application to be studied.

This mechanism is very positive, to the extent that taxpayers obtain financing at low cost and likewise, they can manage their cash flow without having to worry about interest on arrears that are generated by non-payment of taxes within the required opportunity.

Additionally, the operation of this type of transaction is very easy, because once the taxpayer generates the payment receipt, selects the online credit option and the bank that offers this option is displayed to process the credit application. Once the above occurs, it is transferred to the bank’s platform and there it provides the information required for the study of the application to access the credit conditions. It should be noted that the person does not need to add documents, since the bank internally validates the information with its databases and with the risk centers, operations that are carried out online.

For the implementation of this means of payment, it was necessary to include in the DIAN payment platform the button that allows selecting the credit option

online, and the drop-down list of the bank that offers this service, that is, the entity with which the credit operation will be carried out. Once the option is selected, the user is directed directly to the bank’s platform to register the information required for the credit study, which is carried out in a few minutes and finally when the approval is obtained, the payment of the required tax is completed. The credit approval is entirely online.

Once the transaction is completed, the bank notifies DIAN of the payment data made, including important information such as the TIN (Tax Identification Number), name of the taxpayer, type of tax, period, taxable year, and values; just as we would proceed with an electronic payment transaction.

With this tool, we intend to encourage individuals to pay their national taxes quickly and in a timely manner, through an easy, agile, and 100% online procedure.

Disclaimer. Readers are informed that the views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author's employer, organization, committee or other group the author might be associated with, nor to the Executive Secretariat of CIAT. The author is also responsible for the precision and accuracy of data and sources.

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