New wealth tax would change tax policy impacting multinationals
The wealth tax would affect foreign investment in Colombia. Photo: IStock
TL;DR
- A new wealth tax has been reinstated for legal entities in Colombia through emergency economic decrees.
- The tax applies to entities with net worth exceeding approximately $10,474 million Colombian pesos.
- Rates will be 0.5% for general entities and 1.6% for financial and extractive sector companies.
- This tax was previously in effect from 2004-2018 for legal entities.
- Concerns exist that the tax could negatively impact foreign investment and create unexpected financial burdens for companies.
- The decree also includes a normalization measure for taxpayers who have omitted assets or included non-existent liabilities.
- The constitutionality of these decrees is under review, as they were enacted during an emergency without standard legislative approval.
- Payments are to be made in two equal installments on April 1, 2026, and May 4, 2026.
- Exemptions are provided for certain sectors, including health companies, state-intervened companies, and public utility entities in declared calamity zones.