Colombia: Draft legislation includes direct and indirect tax reform proposals
Bill 507 of 2025 was published in the official gazette.
Bill 507 of 2025, which was published in the official gazette, includes the following tax reform proposals:
- Value added tax (VAT) exemption for hotel services in municipalities with fewer than 200,000 inhabitants
- VAT exemption for renewable energy projects (FNCE) and energy efficiency
- Vehicle tax discounts of 80% on penalties and an 80% reduction in interest for debts in arrears until December 31, 2024
- Temporary reduction in tax penalties and interest for omission or correction of tax, customs, and foreign exchange returns, and formal obligations, for certain obligations
- VAT exemption for vehicle fleet replacement, especially if electric vehicles or those with EURO VI technology are purchased, from June 30, 2026, until December 31, 2029
Read a July 2025 report (Spanish) prepared by the KPMG member firm in Colombia