The Colombian Government has enacted temporary tax measures through Decree 240 of 12 March 2026, pursuant to the State of Economic, Social, and Ecological Emergency declared by Decree 150 of 11 February 2026. These measures are intended to address short-term fiscal needs and apply during fiscal year 2026, subject to constitutional review.

A summary of the most relevant points of each measure follows.

Consumption tax on online games of chance operated exclusively over the internet

Effective 13 March 2026 (the day after Decree 240 was published), the provision of online games operated exclusively over the internet is subject to consumption tax at a 16% rate.

The main technical features of this new consumption tax on online games of chance can be summarized as follows. As a consumption tax, the operator may not credit value-added tax (VAT) paid on operating costs as input tax (i.e., no VAT credit/offset is available against the consumption tax).

Complementary tax normalization (impuesto complementario de normalización tributaria).

A normalization tax is reintroduced, which allows the normalization of omitted assets or elimination of nonexistent liabilities as of 1 April 2026. The tax rate would be 19% and filing and payment is required by 31 July 2026 (no late-filing permitted and no amendments after the deadline).

Net Wealth Tax — branches of foreign entities (and other permanent establishments) as new taxpayers

Rules introduced for the Net Wealth Tax applicable to branches of foreign entities and other permanent establishments (PEs) in Colombia include:

• Taxpayers: Taxpayers include branches of foreign entities and, in general, PEs in Colombia.
• Taxable base: The taxable base includes assets possessed with net equity equal to or greater than $10.474b Colombian pesos (COP) (approx. US$2.8m) as of 31 March 2026.
• Attribution study: Branches and PEs must perform an attribution study to determine assets, functions and risks attributable to the local taxable presence. For these purposes, statutory accounting is sufficient to determine the net equity subject to tax.
• Accounting treatment: Taxpayers may record the Net Wealth Tax against reserves or against 2026 results.
• Compliance: Income tax returns must be file and 50% of the tax due must be paid by April 30, 2026, and pay the remaining 50% by June 1, 2026.
• Nondeductibility: This tax is neither deductible nor creditable for income tax purposes.

Transitional relief measures

Decree 240 introduces opportunities for taxpayers who failed to file, filed with inconsistencies or have ongoing disputes arising from official assessments before the tax authority (DIAN) or before the administrative courts. Most of these measures apply to tax, customs and foreign-exchange obligations.

The relief measures include:

1. Temporary reduction of penalties to 15% and late-payment interest to 4.5% for past-due obligations (if an enforceable title exists). The taxpayer must pay 100% of the principal, plus the reduced penalty and reduced interest, no later than 30 April 2026.
2. Temporary reduction for non-filing, corrections and default on complying with formal obligations. The taxpayer would be able to have penalties reduced to 15% and 100% of late-payment interest waived.
3. Transitional regime for defaulted formal obligations. Taxpayers who have formal obligations pending with which they have not yet complied (different from income tax return, equity tax return or transfer pricing returns) may, when the Decree enters into force, comply by paying 3% of gross income reported in the 2024 income tax or net wealth return (as applicable) by 30 April 2026. If the taxpayer is not required to file an income tax return, the situation may be remedied by paying, by 30 April 2026, 2% of gross net worth and/or total assets held as of 31 December 2025. The benefit applies only if the taxpayer complies with the formal obligation. For failure to comply with e-invoicing, the taxpayer must declare the underlying transactions and taxes and transmit the unreported transactions or noncompliant invoices.
4. Judicial conciliation in tax, customs, and foreign-exchange matters. Depending on the stage of the process penalties could be reduced up to 15% and late-payment interest is applied at an annual rate of 4.5%. Specific facts and circumstances should be satisfied to opt for the benefit.

Other measures

Decree 243 of 12 March 2026 permits territorial governments (municipalities and departments), during fiscal year 2026, to offer taxpayers special payment conditions. These may include the remission and/or reduction of late-payment interest and penalties, which may differ from the relief mechanisms established for national-level tax obligations.

Finally, note that a thorough constitutional analysis may lead to an early suspension of these measures; therefore, taking prompt action to secure any relief mechanisms that may benefit the company is essential.