❌ SUSPENDED: Following the Constitutional Court’s decision of January 29, 2025 (Corte Constitucional), the decree analyzed above is currently suspended.
Through Legislative Decree No. 1474 of December 29, 2025 (Decreto Legislativo No. 1474 de 29 de diciembre de 2025), issued under the State of Emergency declared by the National Government through Decree 1290 of December 22, 2025 (Decreto 1290 del 22 de diciembre de 2025), the Executive adopted the following principal tax measures:
Measures Targeting the Extractive Sector
A temporary special tax is imposed on individuals and legal entities engaged in the extraction of hydrocarbons and coal (carbón, and certain derivatives, and crude petroleum oils). The tax is triggered upon the first sale within or from national territory and upon export of such goods. The rate is 1 percent, assessed on the sale value or FOB value.
The tax applies exclusively to taxpayers with ordinary net taxable income (renta líquida ordinaria) exceeding 50,000 UVT in the immediately preceding year. Payment is due monthly within the first five business days for domestic sales and at the time of shipment authorization for exports.
Amendments to the Net Worth Tax
The threshold for being subject to the net worth tax (Impuesto al Patrimonio) in 2026 is reduced from 72,000 UVT COP 3,770,928,000 to 40,000 UVT COP 2,094,960,000 of net equity as of January 1, 2026, calculated after deducting liabilities. Among the exclusions from the tax base are the first 13,500 UVT of the taxpayer’s primary residence.
Progressive rates for 2026 range from 0.5 percent to 5 percent for net worth exceeding 2,000,000 UVT.
Corporate Income Tax Developments
The income tax surcharge for the financial sector is increased by an additional 15 percentage points, bringing the total effective rate to 50 percent for tax year 2026. The surcharge is subject to a 100 percent advance payment, payable in two annual installments. The advance is calculated based on the taxpayer’s prior year income tax base.
For tax year 2026, the decree eliminates the deductibility of royalties paid in cash or in kind for the exploitation of non renewable natural resources by obligated taxpayers. It also establishes a formula to determine the non deductible portion.
