Colombia: Tax Supreme Court lifts suspension, reinstates withholding tax rates
The reinstated rates are effective July 1, 2026.
The Colombian Tax Supreme Court on June 2, 2026, lifted the provisional suspension of Decree 572 of 2025. Consequently, the withholding and self-withholding tax rates set forth in the decree are reinstated.
The effects of this decision are deferred: the reinstated rates will apply as of July 1, 2026 (that is, the first calendar day of the month following the finality of the order).
In practice, reinstating Decree 572 of 2025 reintroduces higher withholding and self-withholding tax rates. These rates aim to align withheld amounts with final income tax liabilities and accelerate tax collection, which may affect taxpayers' cash flow and financial planning.
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