The draft decree will align the withholding tax rate applied to electronic payments and payments made with debit and credit cards
Colombia’s Ministry of Finance has launched a public consultation on 23 October 2025 regarding a draft decree that would align the withholding tax rate applied to electronic payments and payments made with debit and credit cards.
The proposed measure would have introduced a single 1.5% withholding rate for payments that constitute taxable income from the sale of goods or the provision of services, regardless of the electronic payment method used. Under current rules, card transactions are subject to a 1.5% withholding, while other electronic payments are not. The draft aimed to ensure equal treatment of all non-cash payment channels.
The proposal clarified that withholding tax is an advance collection mechanism that taxpayers can later credit in their income tax return. Payments that do not represent taxable income, and payments made to individuals not liable for VAT, would not be subject to withholding.
To facilitate implementation, Decree 1066 of 2025, issued on 15 October 2025, allows DIAN to share RUT information, excluding wealth tax obligations, with withholding agents such as aggregators and acquiring entities, enabling them to verify the tax status of payment recipients before applying withholding. The draft also proposed revising the order of agents responsible for VAT withholding, giving priority to aggregators and acquiring entities due to their access to transaction information.
The consultation period ended on 25 October 2025.
The draft decree had been available for comment on the Ministry of Finance website:
https://www.minhacienda.gov.co/w/pd.-rete-fuente-pagos-electronicos.
