Key amendments to the departmental tax code of Valle del Cauca

The Government of Valle del Cauca issued Ordinance No. 692 on May 13, 2025, through which it adopts the new Departmental Tax Code. This reform aims to modernize, simplify, and consolidate the region’s tax regulations.

Below is a summary of the most significant changes introduced by the new ordinance: 

 

No.

Topic

Previous Regulation (Ord. 474)

New Regulation (Ord. 692)

1

General Provisions

General purpose of the Tax Code.

Includes new objectives such as fiscal sustainability, digitalization, and collection efficiency.

2

General Provisions

Listed general tax principles.

Adds principles of intergenerational equity, progressivity, tax justice, and administrative efficiency.

3

Registration Tax

Defined the taxable event without specifying types of legal acts.

Clarifies the taxable event, distinguishing between inter vivos and mortis causa acts. Differentiated rates:

·         Inter vivos acts: 1.0% of value

·         Mortis Causa Acts: 1.5%

·         Acts without monetary value: flat rate of 4 UVT

4

General Provisions

General treatment of taxpayers.

Defines roles such as jointly and subsidiarily liable parties, and their obligations regarding tax debts.

6

Vehicle Tax

Fixed rates for vehicle tax.

Updates rates based on commercial value:

·         Up to COP $49,470,000: 1.5%

·         COP $49,470,001 to $111,305,000: 2.5%

·         Over COP $111,305,000: 3.5%

·         Exemption for electric or low-emission vehicles

7

Stamps

Base amount for stamp duties.

Adjust rules for public contracts, expanding the taxable base to include contract additions.

8

Tax Procedure

No incentives for early tax payment.

Introduces early payment discounts: Up to 10% discount if paid within a defined period.

9

Tax Procedure

No provision for automatic refunds.

Establishes automatic refunds for credit balances, subject to prior requirements and electronic verification.

10

Tax Procedure

Did not regulate electronic processes.

Mandates the use of electronic means for filing, payments, and notifications.
11Tax ProcedureGeneral oversight framework.Expands oversight powers, enabling electronic audits, data cross-checks, and AI-based verification processes.
12

Special Regime

No special provisions for free trade zones.

Establishes tax benefits such as partial exemptions and fiscal incentives to promote investment in free trade zones.
13

Tax Procedure

N/A

Introducing payment agreements:

· Up to 12 monthly installments

· 80% interest waiver if paid within the first 3 months

Guarantees required for debts exceeding 200 UVT

14

Tax Procedure

N/A

Creates a differentiated penalty regime for microenterprises:

· 50% reduction in fines

Full waiver if voluntarily regularized

 

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Key amendments to the departmental tax code of Valle del Cauca