Colombia: Tax proposals in Finance Bill
International taxation, corporate income tax, VAT, and e-invoicing proposals
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September 10, 2025
The Colombian Treasury Department on September 1, 2025, released a Finance Bill that proposes changes to tax legislation concerning:
- International taxation
- Significant economic presence
- Permanent establishment
- Tax on dividends distributed to nonresidents
- Corporate income tax rules applicable to digital assets
- Indirect transfer of assets rule
- Effective seat of administration (ESA)
- Authorization of the change of foreign shareholders
- Transfer pricing and corporate income tax rules interaction
- Corporate income tax and capital gains tax
- Corporate income tax surcharge
- Capital gains tax
- Cash payments
- Non-deductible expenses
- Income from asset comparison
- Net worth tax
- Taxable event
- Rate
- Consumption tax
- Taxable event
- Rate
- Beer and mixed drinks
- Liquors, wines, aperitifs, and similar items
- Cigarettes, manufactured tobacco, derivatives, substitutes, or imitations
- Value added tax (VAT)
- Taxable event
- Elimination of VAT exclusions
- Rate
- Environmental and healthy taxes
- Investment in non-conventional energy sources (NCEs)
- National carbon tax
- Special tax on the extraction of hydrocarbons and coal
- Other relevant proposals
- Electronic invoicing
- Automatic exchange of information framework
- Special statute of limitations
- Deadlines for correcting returns
- General anti-abuse rule (GAAR) procedure
- Temporary reduction in penalties and interest
KPMG observation
The bill is expected to have a low chance of being passed by Congress.
Read a September 2025 report prepared by the KPMG member firm in Colombia