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Colombia: Senate rejects proposed tax reform bill

Included increased taxes

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December 10, 2025

The Fourth Committee of the Senate on December 9, 2025, decided not to move forward with the government’s proposed tax reform that included higher income and dividend taxes, wealth levies, and consumption tax adjustments. The proposal included major measures such as:

  • Income tax rates of up to 41% for individuals
  • A 30% tax on dividends
  • A wealth tax applicable from 40,000 UVT
  • Deductions for electronic invoicing
  • A 15% amnesty for undeclared assets

It also introduced rules on windfall gains, digital assets, and permanent establishments, imposing obligations equivalent to those of resident taxpayers.

The initiative was withdrawn following criticism for prioritizing tax hikes and its potential adverse effects on the economy.

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

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