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Colombia: Proposed tax measures to fund national budget

Including increased financial transactions tax, special tax on hydrocarbons and coal

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december 22, 2025

The Colombian government has proposed temporary emergency taxes to fund the national budget and mitigate effects of the economic emergency and guarantee fiscal stability.

Key proposals include:

  • Progressive wealth tax on Colombian legal entities starting January 1, 2026
  • Value added tax (VAT) on online gambling
  • Increased financial transactions tax
  • Higher consumption taxes on alcohol and tobacco
  • Special tax on hydrocarbons and coal

However, the proposal does not include new taxes on cloud services, capital gains, or dividends, and does not introduce the significant economic presence (SEP) regime, which were part of a failed tax reform. Read TaxNewsFlash

Read a December 2025 report prepared by the KPMG member firm in Colombia

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