Colombia: Net Worth Tax to Companies

In brief

Through Legislative Decree No. 173 of 24 February 2026, the Colombian Government introduced an exceptional net wealth tax applicable to legal entities, exclusively for tax year 2026, aimed at financing expenditures arising from the State of Economic, Social and Ecological Emergency declared under Legislative Decree 0150 of 2026.

The tax applies to legal entities and de facto companies whose net equity as of 1 March 2026 is equal to or exceeds 200,000 UVT (COP 10.474.800.000 or USD 2.800.000), subject to a general tax rate of 0.5%, and a special increased rate of 1.6% for entities engaged in certain financial and extractive activities.

The Government justified the creation of the tax on the grounds of insufficient resources in the General State Budget for 2026. To this end, it declared a State of Economic, Social, and Ecological Emergency through Legislative Decree No. 0150 of 2026, based on the climate-related situation affecting the departments of Córdoba, Antioquia, La Guajira, Sucre, Bolívar, Cesar, Magdalena, and Chocó. Additionally, the Government argued that the failure to approve financing laws and the resulting need to secure immediate resources to address the emergency warranted the measure, invoking the principles of solidarity, equity, and tax progressivity.

In more detail

Implications for the taxpayers

The main structural change introduced by Decree 173 is the explicit inclusion of legal entities as net wealth tax taxpayers, through the addition of item 6 to Article 292-3 of the Colombian Tax Code.

The tax applies to:

1. Legal entities and de facto companies that are corporate income taxpayers
2. Whose net equity as of 1 March 2026, is equal to or greater than 200,000 UVT. (COP 10.474.800.000 or USD 2.800.000)

Certain entities are expressly excluded, including:

1. Companies operating in the health sector
2. Companies subject to government intervention
3. Public utilities companies located in municipalities declared under public calamity within the emergency area

Tax implications

• Taxable event: Ownership of net worth as of 1 March 2026.
• Tax base: Gross equity minus liabilities outstanding as of that date, subject to specific exclusions, including:
  • Shares or equity interests in Colombian companies (held directly or indirectly)
  • Certain environmental assets owned by public water and sanitation companies
  • Technical reserves of Fogafín and Fogacoop
  • Social contributions made by members of entities governed by Article 19-4 of the Tax Code

  The decree includes anti-fragmentation rules, particularly for corporate spin-offs carried out between the enactment of the decree and 1 March 2026.

• Tax rates and thresholds
  • 200.000 UVT (COP 10.474.800.000 or USD 2.800.000) of net worth as of 1 March 2026.
  • General tax rate of 0.5%
    • 0.5% on the taxable base
  • Special tax rate 1.6%
    • Financial and capital markets sector, including:
      • Financial institutions
      • Insurance and reinsurance companies
      • Stockbrokers
      • Market infrastructure providers
    • Extractive sector, particularly:
      • Coal mining (CIIU 0510 and 0520)
      • Crude oil extraction (CIIU 0610)
  • Filling and payment deadlines
  • Tax return filling: 1 April 2026
  • Payment Schedule:
    • First Installment (50%). 1 April 2026
    • Second Installment (50%): 4 May 2026

The Colombian Tax Authority (DIAN) will issue the relevant tax return form and payment receipts.

Conclusions

From Baker McKenzie’s perspective, the exceptional net wealth tax introduced by Decree 173 of 2026 calls for an early and technical assessment by companies potentially within its scope, particularly those with significant equity positions or operating in sectors subject to the increased rate. The combination of a single valuation date, anti-avoidance rules and a condensed filing and payment timeline underscores the importance of proactively reviewing the composition of net equity, the applicability of exclusions, and the relevant tax rate. A timely evaluation enables companies not only to quantify the immediate financial impact of the measure, but also to make well‑informed, well‑supported decisions within the existing legal framework, mitigating compliance and tax risk in a context of heightened scrutiny by the tax authorities.

Camilo Calderón, Tax Specialist, and Carolina Roldán, Laura Duran, and Andrea Jiménez, Senior Associates, have contributed to this legal update.

Download the Spanish version of Colombia: Net Worth Tax to Companies.