Colombia’s Constitutional Court declared Legislative Decree No. 1474 of 29 December 2025 unconstitutional under Sentencia C-079/26 due to the invalidity of the enabling emergency decree. It ordered refunds of taxes collected between 30 December 2025 and 28 January 2026 and upheld validly acquired taxpayer benefits.
Colombia’s Constitutional Court issued a press release on 17 April 2026 confirming that Legislative Decree No. 1474 of 29 December 2025 has been declared unconstitutional. The summary refers to Sentencia C-079/26, as set out in the Court’s official communication of 15 April 2026.
The Court found that the decree, which introduced tax measures under a declared state of emergency, is unconstitutional. This was decided on the basis of “unconstitutionality by consequence”, since the enabling Decree 1390 of 2025, which had declared the state of emergency, had already been struck down in a previous ruling (Sentencia C-075 of 2026).
The Court also noted that the decree had produced legal effects between 30 December 2025 and 28 January 2026. Given this limited period of application, it set out specific consequences for tax situations arising during that time.
For direct taxes, the Dirección de Impuestos y Aduanas Nacionales (DIAN) is not allowed to require the declaration, liquidation, or collection of taxes that were affected by the decree. Any amounts that taxpayers paid in advance under these provisions must be refunded.
For indirect taxes, payments made during the period of validity must be returned to the taxpayers who effectively bore the tax burden, provided they can demonstrate proof of payment. The Court indicated that electronic invoicing or other transaction documents may be used as evidence. DIAN is required to apply existing refund mechanisms or establish a specific procedure within 30 days of notification of the judgment.
The ruling also protects taxpayers who met the requirements for tax benefits, such as reduced sanctions or conciliation measures, while the decree was in force. These situations are treated as “consolidated legal situations” and remain valid to ensure legal certainty and tax favourability.
The Court further emphasised that tax obligations cannot be imposed on the basis of a norm issued without proper competence, particularly where the underlying state of emergency lacked a factual basis. The decision was delivered by Magistrado Ponente Juan Carlos Cortés González under case file RE-388.
Legislative Decree No. 1474 of 29 December 2025 introduced a package of temporary tax measures aimed at raising revenue and strengthening compliance. It increased VAT and selected excise duties, with higher rates applied to items such as alcoholic beverages, online gambling activities, and certain low-value imports.
It introduced or adjusted a net-worth (wealth) tax targeting high-net-worth individuals and certain entities. In addition, it imposed a temporary extra levy on hydrocarbon and coal extraction as part of measures linked to an environmental emergency.
It also established a temporary “tax normalisation” regime, allowing taxpayers to regularise outstanding obligations under more favourable terms, including reduced penalties and interest for arrears or procedural non-compliance if settled within specified deadlines.
Earlier, Colombia’s Constitutional Court provisionally halted Decree 1390 of 2025, which had declared a state of economic and social emergency, and blocked the related tax measures under Decree 1474 of 2025, pending a final ruling on their constitutionality.
