Less investment and cash flow, but more inflation: effects of the new wealth tax for companies
From April 1, 2026, legal entities will have to pay the wealth tax. iStock Photo
TL;DR
- The new wealth tax for legal entities in Colombia begins on April 1, 2026.
- Payments will be made in two equal installments: 50% on April 1, 2026, and the remaining 50% on May 4, 2026.
- The tax rate for financial and extractive sector companies will be 1.6%, an increase from the general 0.5%.
- Experts predict the tax will negatively impact investment and company cash flow, potentially leading to inflation.
- Private universities are also affected, with concerns raised about the impact on research, teaching, and social projection.
- The Ministry of Education has requested technical discussions to evaluate the tax's effects on the university system.
- The Association of Colombian Universities has asked the Constitutional Court to declare the decree creating the tax unconstitutional.
- Ascun estimates the tax could cost universities 135 billion pesos, jeopardizing their financial sustainability.