Colombia Supreme Administrative Court has provisionally suspended key provisions of Decree 572 of 2025, which introduced changes to income tax withholding (retención) and self-withholding (autorretención), including revised rates and lower application thresholds, pending further judicial review.
Colombia’s Supreme Administrative Court has provisionally suspended articles 2-8 of Decree 572 of 2025, which introduced sweeping changes to income tax withholding and self-withholding rules. The suspension halts implementation while legal review continues.
The decree was designed to boost tax collection by lowering withholding thresholds, expanding transactions subject to withholding, and introducing sector-based self-withholding rates under CIIU activity codes.
Main changes under the suspended decree:
Withholding thresholds and rates:
- Services: No withholding below 2 UVT
- Agriculture/livestock: 1.5% above 70 UVT; optional below threshold
- Coffee (parchment/cherry): 0.5% above 70 UVT; exempt below
- Gold sales (to international traders): 2.5%
- Real estate: 1% up to 10,000 UVT on housing, 2.5% above; 2.5% flat for non-housing; exempt below 10 UVT
- Ecclesiastical payments: exempt below 10 UVT
Self-withholding by sector
Rates under the CIIU system were set as follows:
- 0.55%: selected manufacturing, agriculture support, retail, and special entities (including state gambling monopolies and cultural publishers)
- 1.10%–2.20%: professional services, construction, telecommunications
- 3.50%–4.50%: financial services (3.50%), mining and electricity generation (4.50%)
The decree was signed on 28 May 2025. Its provisions apply starting from the first calendar day of the month following its publication.
