Emergency Tax Reform: What Companies in Colombia Must Prepare for in 2026

Colombia is preparing for a high-impact fiscal adjustment starting in 2026. Through Legislative Decree 1474, the National Government introduces a package of extraordinary tax measures in response to the declared state of economic and social emergency, with direct effects on financial operations, digital commerce, and corporate tax planning.

Beyond the temporary nature of the decree, its provisions represent a significant shift in fiscal rules, requiring analysis and preparation starting now.

Effective Date and Constitutional Review

The measures established under Decree 1474 will enter into force on January 1, 2026. As with all regulations issued under a state of emergency, their continuity will depend on a review by the Constitutional Court, which will begin once the judicial recess ends, starting on January 10, 2026.

This is a critical point: the Court may uphold or strike down the decree, in whole or in part, requiring companies to work with alternative tax scenarios.

Fiscal Adjustments with the Greatest Impact on Businesses

The decree introduces changes that directly affect cost structures, consumer pricing, and formal tax obligations:

VAT: Increased Pressure on Consumption and Digital Commerce

• The reduced VAT rate for spirits, wines, and aperitifs is eliminated, and these products will now be subject to the general 19% VAT rate, increasing final prices and impacting distribution chains.
• Online gambling and betting platforms will be subject to VAT, even when the service provider is located abroad.
• The VAT exemption threshold for low-value international shipments is significantly reduced from USD 200 to USD 50, directly affecting cross-border e-commerce.

Consumption Tax: Expansion of the Taxable Base

• Goods considered luxury items or those with high environmental or social impact will be taxed at a 19% rate, aligning them with the general VAT rate.
• Vaping devices and electronic nicotine delivery systems are incorporated as taxable events under the consumption tax, expanding its scope based on public health considerations.

Net Worth Tax: More Taxpayers, Higher Burden

The net worth tax is strengthened by reducing the threshold to 40,000 UVT, significantly expanding the number of taxpayers subject to the tax, with progressive rates that may reach up to 5% of net worth.

Financial Sector: Substantial Increase in Income Tax

Financial institutions will be required to assume an additional 15% surtax, increasing the effective corporate income tax rate to 50%, along with a mandatory 100% advance payment, directly impacting sector liquidity.

Tax Normalization: A Window of Opportunity

The decree also introduces a temporary opportunity for tax regularization, including:

• Reduction of penalties and late payment interest.
• Facilities for corrections and late filing of tax returns.
• Settlements with the Colombian tax authority (DIAN) in administrative and judicial proceedings.

Additionally, a 19% tax normalization levy is created for omitted assets or non-existent liabilities as of January 1, 2026, with a filing deadline of July 31, 2026, without penalties or criminal consequences, provided that formal requirements are met.

2026: A Year That Demands Tax Planning and Technological Control

This set of measures reinforces the need to automate tax compliance, review tax configurations, and ensure that financial systems are fully aligned with current regulations.

Get Ahead of the 2026 Tax Changes

At LLB Solutions, we help companies adapt their tax and technology processes to new regulations, ensuring compliance, control, and financial visibility in Colombia through Microsoft Dynamics 365 Business Central and fiscal localization solutions.

Talk to our experts and get ready today.

info@llbsolutions.com | Localización Colombia