Colombia: Draft legislation includes direct and indirect tax reform proposals

Bill 507 of 2025 was published in the official gazette.

Share
July 28, 2025

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

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's . Privacy Statement

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline