Figures verified 7 October 2026 · Applies to: Status as of October 2026
Between December 2025 and September 2026, Colombian tax law went through a rejected reform, two economic emergencies, several decrees struck down by the Constitutional Court and a new reform bill. Foreign investors trying to follow it in English have been badly served. Several widely shared articles describe proposals as law, or cite decrees that no longer stand. Here is the sequence, in order, and the bottom line.
The bottom line first
Ley 2277 of 2022 remains the tax law actually in force. The 35% corporate rate, the 20% withholding on dividends to non-residents, the individual wealth tax at 72,000 UVT and the 15% minimum tax all come from it, and all still apply as of October 2026.
The timeline
| When | What happened | Status |
|---|---|---|
| 9 Dec 2025 | The government’s tax reform was rejected in the Senate (9–4 in Comisión Cuarta). | Nothing from that bill is law. |
| Dec 2025 | The government declared an economic emergency and issued Decreto 1474 of 2025, alongside related decrees. | See next row. |
| 24 Feb 2026 | A second emergency produced Decreto Legislativo 173 and, with it, Decreto 240 of 2026: a wealth tax on companies (200,000 UVT, 0.50%/1.6%, Formulario 425). | Narrowed by C-191 of 2026; second instalment suspended for non-profits and entities in liquidation (Auto A-533 of 2026). |
| Apr 2026 | The Constitutional Court struck down the emergency (C-075) and the decree (C-079), ordering that taxes collected under it be refunded. Decreto 1390 of 2025 was declared unconstitutional; 1474 of 2025 and 044 of 2026 were suspended. | Not in force. |
| 14 May 2026 | Decreto 572 of 2025 (withholding and self-withholding rates) was suspended. | Reinstated from 1 July 2026; a nullity action is still pending, so rates could move again. |
| 20 Jul 2026 | Proyecto de Ley 004 of 2026 filed: a permanent 50% rate for the financial sector, 30% dividend withholding for non-residents, a 40,000 UVT individual wealth-tax threshold with higher rates. | A bill in Congress, not law. |
| 7 Aug 2026 | A new government took office. | The bill, filed by the outgoing government, may be changed or replaced. |
The corporate emergency wealth tax should be cited as Decretos 173 and 240 of 2026 together, because the first is the originating emergency decree and the second sets the tax.
What this means for foreign investors
- Dividends: plan on 20% withholding for non-residents (48% all-in with corporate tax), not 30%. Re-check before any distribution in 2027. See why 20% costs you 48%.
- Wealth tax: individuals still face the 72,000 UVT threshold. The 200,000 UVT emergency tax is for companies only. See wealth tax for foreigners and non-residents.
- Refunds: if your company paid taxes under the struck-down Decreto 1474, the court ordered them refunded. Check whether you are owed money.
- Withholding rates: Decreto 572 is in force from 1 July 2026, but the pending nullity action means it could change again. Your accountant should be watching it.
Two traps in what you read online
- Proposals described as law. Any article stating that non-resident dividend withholding “is now 30%” is describing the bill, not the law.
- Struck-down tables still published. Some blogs still show a 40,000 UVT individual wealth-tax table from a decree that was struck down. It is different from, and unrelated to, the 40,000 UVT proposed in the 2026 bill. Neither is in force.
How we’ll keep this current
We will update this article as the bill moves through Congress and as the courts rule. Every figure on our site carries a “verified” date. If an article doesn’t show one, treat its numbers with caution. For all current reference values, see our 2026 rates and thresholds page.
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This article is general information, not tax or legal advice. Colombian tax law changed materially between December 2025 and September 2026, and some rules described here are subject to pending legislation or litigation. Confirm your situation with a professional before acting.