Executive summary

On 21 September 2026, the Colombian Tax and Customs Authority (DIAN, by its Spanish acronym) issued Opinion 1737, clarifying that certain earthquake relief measures are available nationwide while others are restricted to taxpayers directly affected by the disaster. This clarification stemmed from the Colombian government's issuance, on 17 September 2026, of Legislative Decrees 1413 and 1419, which introduced temporary tax, customs and foreign exchange relief, as well as certain tax incentives for qualifying private investments, following the earthquake of 10 August 2026.

The two decrees provide nationwide measures that include reductions in penalties and default interest, along with relief for omitted or corrected filings, settlement of qualifying disputes and donations of tax credit balances. Restricted measures include simplified payment agreements, rescheduling of existing and insolvency-related payment arrangements and tax-free treatment for certain disaster-relief donations. Most tax relief elections must be made by 19 November 2026.

Further, qualifying new investments may benefit from a corporate income tax rate of 20% (potentially reduced to 15%), 50% annual tax depreciation and a value-added tax (VAT) exemption on eligible imports.

The principal investment incentives apply during 2026 and 2027, subject to qualification, investment, employment and documentation requirements.

Key dates

The chart below outlines important dates to note.

Tax, customs and foreign exchange relief

DIAN Opinion 1737 clarifies that, while certain normalization and collection measures have nationwide application, other measures like payment facilities and disaster-related relief remain limited to affected taxpayers.

Measures available nationwide

Reduced penalties and default interest: Qualifying taxpayers may settle certain outstanding tax, customs and foreign exchange liabilities by paying the principal, default interest at a reduced annual rate of 4.5% (instead of the current default interest rate of 27.24% per annum certified by the Colombian Financial Superintendence) and 15% of the applicable penalties (late-filing penalty). This relief is available until 19 November 2026.

Relief for omitted filings, amendments and formal obligations: Penalties related to specified late filings, amended returns, transfer pricing obligations and certain other tax, customs and foreign exchange compliance failures may be reduced by 85%. Depending on the circumstances, default interest may apply at a reduced annual rate of 4.5% or may be waived entirely. This relief is available until 19 November 2026.

Settlement of tax, customs and foreign-exchange disputes: Qualifying administrative and judicial disputes with DIAN may be settled with reductions in penalties and interest, depending on the procedural stage and the nature of the assessment. The applicable penalty reduction ranges from 70% to 85%. Interest relief may consist of a 70% reduction, requiring payment of 30% of the interest due, or the application of a reduced annual interest rate of 4.5%. Taxpayers must apply for this relief by 19 November 2026.

Donation of tax credit balances: Taxpayers may donate refundable or creditable tax balances to the Colombian Government. After DIAN verifies the balance and offsets any overdue liabilities, the accepted amount may generate a tax credit under the ordinary donation rules. This measure is available until 31 December 2026.

Relief restricted to affected taxpayers

Simplified payment agreements: Qualifying taxpayers may enter into payment plans for tax, customs and foreign-exchange liabilities that were overdue as of 18 September 2026. The measure requires an initial payment equal to 10% of the outstanding liability, applies a reduced annual interest rate of 4.5% and permits repayment over a period of up to 24 months without the need to provide security. In certain cases, repayment periods of up to 36 months may be available with only personal guarantees for liabilities not exceeding 6,000 tax value units (UVT), approximately 314 million Colombian pesos (COP314m) (US$75,000). Taxpayers must apply for this relief by 19 November 2026.

Rescheduling existing payment agreements: Taxpayers may request a one-time rescheduling of installments due between 10 August and 31 December 2026 under payment agreements that were in force on 10 August 2026. The measure allows qualifying payments to be deferred for up to an additional 12 months while existing guarantees remain in place. Taxpayers that DIAN qualifies as a "Large Taxpayers" are not eligible for this relief. Applications must be submitted by 19 November 2026

Rescheduling insolvency-related payment arrangements: Special rules permit modifications to qualifying payment arrangements that are part of insolvency or restructuring proceedings, subject to the applicable legal requirements and conditions. Taxpayers seeking to benefit from these rules must apply by 19 November 2026.

Disaster-relief donations: Individuals directly affected by the earthquake may receive qualifying cash or in-kind donations that are treated as nontaxable income and nontaxable capital gains. The exemption applies up to a limit of 2,600 UVT, approximately COP136m (US$33,000), per beneficiary. No withholding tax applies to these donations. The relief is available for qualifying donations received between 10 August and 31 December 2026.

Incentives for new private investments

The investment regime is intended for new private investments that directly support reconstruction, recovery and economic activity in municipalities within the emergency territory. Resident and nonresident income taxpayers may qualify, including through eligible investment vehicles, if the project meets the applicable conditions and maintains appropriate traceability.

Reduced corporate income tax rate: Income directly attributable to a qualifying project is subject to a 20% corporate income tax rate. The rate may be reduced by one additional percentage point for each complete block of 250 new direct jobs created, up to a maximum reduction that results in a minimum tax rate of 15%. The incentive remains subject to Colombia's minimum taxation rules and is available for the 2026 and 2027 tax years.

Accelerated depreciation: Qualifying productive property, plant and equipment that is acquired, constructed or rehabilitated for an eligible project may be depreciated for tax purposes at an annual rate of 50%. The same asset may not be used to claim duplicate accelerated-depreciation benefits. This incentive is available for the 2026 and 2027 tax years.

VAT exemption on imports: Eligible imports of indispensable raw materials, inputs and capital goods used exclusively in approved projects may qualify for an exemption from VAT. To qualify, equivalent domestic production must be unavailable and the applicable certification requirements must be satisfied. This incentive is available until 31 December 2027.

Minimum investment thresholds

Investment thresholds for the tourism, agroindustry, construction, manufacturing and services sectors are as follows:

Note that the investment must be new and additional, meet the relevant sector threshold, generate direct employment, begin execution within 12 months following the emergency declaration and receive qualification from the Ministry of Commerce, Industry and Tourism. The taxpayer must trace the investor, funding, assets, employment and project income. The investment may be executed over a maximum of three tax years from qualification, but the tax incentives expire on 31 December 2027.

Implications for MNEs

Tax controversy and audits

Multinational enterprises (MNEs) with qualifying tax, customs or foreign exchange disputes may evaluate whether to take advantage of the temporary settlement mechanisms and penalty reductions available under the relief measures. Given the application deadline of 19 November 2026, affected taxpayers may wish to assess potential opportunities to resolve disputes on improved terms.

Compliance remediation

Groups with omitted filings, amended-return exposures, transfer pricing failures or other qualifying tax, customs or foreign exchange compliance issues may consider whether the nationwide reductions in penalties and interest lower the cost of regularizing historical positions. Taxpayers may also wish to evaluate whether the available relief measures provide an opportunity to address outstanding compliance matters before the applicable deadlines.

Investment planning

Groups considering new projects in the affected region may reassess projected returns in light of the reduced corporate income tax rate, accelerated depreciation allowance and VAT exemption for qualifying imports. These incentives may enhance the economic viability of eligible investments and influence decisions regarding the timing, scale and structure of planned projects.