Decree 0572 of 2025
• Changes in the minimum withholding tax bases.
• Changes in withholding tax rates.
• Changes in special self-withholding tax rates by economic activity.
Changes to minimum withholding tax bases
Transaction Category | Until 31/05/2025 | From 01/06/2025 | Applicable Rate |
| General services | 4 UVT | 2 UVT | 4% or 6% |
| General purchases | 27 UVT | 10 UVT | Determined on a case-by-case basis |
| Sale of agricultural or livestock products | 92 UVT | 70 UVT | 1.5% |
| Sale of parchment or cherry coffee | 160 UVT | 70 UVT | 0.5% |
| Sale of real estate by legal entities (residential) | 20 000 UVT | 10 000 UVT | 1% on first 10 000 UVT; 2.5% thereafter |
| Sale of real estate by legal entities (any use) | 27 UVT | 10 UVT | 1% on amounts exceeding 10 UVT |
Comparison of regulations for minimum bases changes
| Category | Prior Rule | New Rule | Note |
|---|---|---|---|
| General services | Article 1.2.4.4.1, DUT 1625/2016 | Article 2, Decree 572/2025 | May also apply to VAT withholding, depending on the case. |
| General purchases | Articles 1.2.4.6.9 & 1.2.4.9.1, DUT 1625/2016 | Articles 5 & 6, Decree 572/2025 | — |
| Agricultural/livestock products | Article 1.2.4.6.7, DUT 1625/2016 | Article 3, Decree 572/2025 | Rate unchanged; only minimum thresholds modified. |
| Parchment/cherry coffee | Article 1.2.4.6.8, DUT 1625/2016 | Article 4, Decree 572/2025 | Rate unchanged; only minimum thresholds modified. |
| Real estate (residential) by legal entities | Paragraph 3 & item i), Article 1.2.4.9.1, Chapter 9, DUT 1625 | Article 6, Decree 572/2025 | 1 % on first 10 000 UVT; 2.5 % thereafter. |
| Real estate (any use) by legal entities | Paragraph 3 & item i), Article 1.2.4.9.1, Chapter 9, DUT 1625 | Article 6, Decree 572/2025 | 1 % on amounts exceeding 10 UVT. |
Changes in withholding tax rates
Income Type | Until 31/05/2025 | From 01/06/2025 | Legal Reference |
| Financial returns on CDATs | 0 % | 4 % | Article 1, Decree 0572/2025 |
| Gold purchases by international trading companies | 1 % | 2.5 % | Article 5, Decree 0572/2025 |
Changes to special self-withholding rates by economic activity
Article 8 of Decree 0572/2025 amends Article 1.2.6.8 of DUT 1625/2016 Title 5, Part 2, establishing new special self-withholding rates by CIIU (economic activity code).
These regulatory amendments entail significant increases for certain economic activities by raising the applicable special self-withholding rates that were originally established under Decree 2201 of 2016 and later amended by Decree 261 of 2023. For example:
- From 0.55 % to 1.20 %
- From 2.20 % to 4.50 %
- From 1.10 % to 3.50
- From 2.20 % to 3.50 %
These changes aim to enhance the efficiency of tax collection for the State and to accelerate the income tax payment through the self-withholding system. However, they also have a financial impact on cash flow for certain economic sectors.
Does this affect VAT and ICA withholdings?
Regarding VAT withholding tax, Article 1.3.2.1.12 of Decree 1625 of 2016 (Regulatory Tax Decree) establishes that the same minimum thresholds exempt from income tax withholding must be applied, both for services and for other taxable income. Consequently, VAT withholding applies from 2 UVT for services and from 10 UVT for other types of taxable income.
Regarding Industry and Commerce Tax withholding, it is necessary to review the applicable municipal regulations, since each local jurisdiction may establish its own minimum withholding thresholds. Some jurisdictions adopt the same criteria established for income tax withholding, which directly impacts their implementation. However, other jurisdictions, such as Bogota D.C., apply their own rules. In this regard, the Bogota District Tax Authority clarified through Memorandum 220010-60 that the minimum thresholds established under National Decree 572 of 2025 do not apply in Bogotá D.C., as the city is governed by the provisions set forth in Article 8 of Decree 271 of 2002.
