Colombia: Temporary wealth tax for corporations
Applicable from March 1, 2026, through December 31, 2026 for corporations with tax net equity equal to or exceeding US$2.9 million
The Colombian government on February 24, 2026, issued Decree 0173, establishing a temporary wealth tax applicable from March 1, 2026, through December 31, 2026. The measure aims to raise funds in response to recent climate‑related events.
The tax applies to corporations with tax net equity equal to or exceeding US$2.9 million as of March 1, 2026. The general tax rate is 0.5%, while a higher rate of 1.6% applies to entities in the financial sector as well as companies engaged in the coal and oil industries. The taxable base is the taxpayer’s tax net equity.
For compliance purposes, the tax must be paid in two installments: the first on April 1, 2026, and the second in May 2026. A tax return must be filed on each respective due date.
The decree also incorporates anti‑avoidance provisions. In the case of an asset spin-off, the beneficiary entity will be treated as the taxpayer and must determine whether it meets the tax net equity threshold by considering the combined assets of both the beneficiary and the demerged entity, as if the spin-off had not occurred.
For more information, contact a KPMG tax professional in Colombia:
Ricardo Ruiz | ricardoaruiz@kpmg.com
Felipe Cabarcas | fcabarcas@kpmg.com
Pedro Madera | pmadera@kpmg.com