economy

May 8, 2026

Attention: Council of State Suspended Part of the Decree Increasing Withholding and Self-Withholding at Source

Withholding at source Photo: Mayor's Office of Bogotá

Attention: Council of State Suspended Part of the Decree Increasing Withholding and Self-Withholding at Source

TL;DR

  • The Council of State suspended articles 2 to 8 of Decree 572 of 2025, affecting withholding tax and self-withholding rules.
  • The suspension is provisional and due to the decree's insufficient and inadequate motivation, lacking detailed technical, economic, and legal justification.
  • Businesses and taxpayers will temporarily revert to the previous tax regulations until a final decision is made.
  • The Council of State denied the suspension of Article 1, related to the withholding tax rate for CDATs, finding the motivation reasonable.
  • The decision focuses on the procedural aspect of motivation, not on the economic impacts or merits of the tax changes.

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