Colombia: Provisional suspension of decree on withholding and self-withholding taxes
Reinstatement of prior withholding tax regime
The Council of State on May 7, 2026, ordered the partial provisional suspension of Articles 2 to 8 of Decree 572 of 2025, which had amended withholding and self-withholding bases and rates across economic activities.
The decree—which sought to align withholding with actual tax liabilities and improve collection efficiency—was challenged for alleged inconsistencies with Article 365 of the Tax Code, breaches of constitutional tax principles, and insufficient technical support, along with adverse impacts on taxpayers.
The suspension takes immediate effect, meaning the amended provisions no longer apply, and the prior regime is reinstated pending a final ruling.
KPMG observation
Ultimately, the decision underscores the need for robust technical justification in tax regulation and requires the reapplication of the pre-existing withholding framework. Article 1 remains in effect.
For more information, contact a KPMG tax professional in Colombia:
Ricardo Ruiz | ricardoaruiz@kpmg.com
Pedro Madera | pmadera@kpmg.com
Karol Bolaños | karolbolanos@kpmg.com