The tax reforms are aimed at modernising the system, boosting investment, and creating jobs.
Bogota’s Mayor’s Office, Colombia, submitted Project of Agreement 767 of 2025 to the District Council, proposing a major tax reform designed to modernise the city’s tax system, attract investment, and create jobs.
The proposal includes:
- Industry and Commerce Tax (ICA): Rates updated by sector, with the financial sector rising from 14% to 21% and simplified regime rates up to 30%. Progressive rates will benefit new microenterprises (2025–2030), while exemptions target large investments and strategic sectors. Digital and remote activities are explicitly included.
- Firefighting surtax: Applies to taxpayers with income above UVT 43,498, with 1% bimonthly prepayments and annual reporting.
- Unified property tax: New rates vary by property type, stratum, and tax base, with growth limits and exemptions for urban renewal, sustainable construction, and specialised rental projects.
- Public lighting tax: A new tax for electricity users, self-generators, and properties without household electricity, with rates based on stratum and service type.
- Tax incentives: Targeted exemptions for industrial and technological investments, strategic zones like Airport Districts, sustainable housing, and urban renewal projects.
- Procedures and penalties: Updated notification rules, reduced maximum penalties (UVT 3,000 vs UVT 15,000 nationally), and adjustments to proportionality and favorability principles.
- Other provisions: The visual outdoor advertising tax will be eliminated from 2026, and a Bogotá Tax Statute will compile all regulations, with mechanisms for compensatory payments from land value increases.
