Colombia has introduced a temporary wealth tax, applicable from 1 March to 31 December 2026, targeting corporations above a certain tax net equity threshold to fund climate emergency response measures.
The Colombian government issued Decree 0173 on 24 February 2026, introducing a temporary wealth tax to finance the response to a severe climatic emergency. The tax applies to corporations with tax net equity equal to or exceeding USD 2.9 million as of 1 March 2026, equivalent to COP 200,000.
The taxable base is the taxpayer’s tax net equity. A general rate of 0.5% applies, while a higher rate of 1.6% applies to entities in the financial sector and companies engaged in the coal and oil industries.
Certain entities are exempt, including healthcare providers and utility companies operating in disaster-affected areas.
The revenue collected is earmarked exclusively for disaster relief and the restoration of essential services in the affected departments. The tax must be paid in two instalments. The first payment is due on 1 April 2026 and the second in May 2026. A tax return must be filed on each respective due date.
The decree also introduces anti-avoidance provisions. In the case of an asset spin-off, the beneficiary entity will be treated as the taxpayer. It must assess whether the tax net equity threshold is met by considering the combined assets of both the beneficiary and the demerged entity, as if the spin-off had not taken place.
The measure is applicable from 1 March – 31 December, 2026.
