Colombia: Tax reform proposals (Bogotá)

Includes tax incentives for large industrial and technological investments

Share
August 14, 2025

The Mayor’s Office for the District of Bogotá submitted a tax reform proposal for 2025. The proposal includes changes to:

Industry and commerce tax (ICA)

  • New rates based on economic activity, with significant increases for the financial sector
  • Progressive rates for microenterprises formalized between 2025 and 2030, excluding certain sectors like finance and telecommunications
  • New exemptions for large investments and strategic sectors
  • Territorial scope of the tax expanded to cover digital and remote activities

Firefighter surtax

  • Applies to taxpayers with incomes exceeding 43,498 UVT, requiring annual payments with bimonthly advances

Unified property tax

  • New differentiated rates and annual growth limits, with exemptions for urban renewal and sustainable construction projects

Public lighting tax

  • New tax applicable to electricity users and differentiated by user type

Tax incentives

  • Exemptions for large industrial and technological investments, strategic zone projects, urban renewal, and sustainable housing

Read an August 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