Ruling 1474 of 2025 – Tax measures issued within the framework of the State of Exception

The following modifications are established in said Ruling:

• 19% VAT for spirits, wines, aperitifs and similar products.
• VAT on games of chance and gambling operated exclusively online.
• Reduction of the VAT exemption amount on low-value imports (minimis).
• Increase in the national consumption tax rate for certain types of goods.
• Consumption tax on liquors, wines, aperitifs and similar products.
• Tax on the consumption of cigarettes, manufactured tobacco and similar products.
• Modification of the tax base and rates of the wealth tax.
• Surcharge on income tax for the financial sector.
• Prohibition of the deduction of royalties in income tax.
•  Tax for fiscal stability.
• Complementary tax for tax regularization.
• Tax relief.
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Specifically, the following modifications are made:

• 19% VAT for spirits, wines, aperitifs and similar products: For the 2026 tax year, the VAT rate for liquors, wines, aperitifs, and similar products will increase to 19%. The transfer of 5 percentage points to the departments remains in effect. This represents a significant change, since these products previously had a special VAT rate of 5% (item 2 of section 468-1 of the Tax Code), which will now be aligned with the general VAT rate throughout the 2026 tax year.

• VAT on games of chance and gambling operated exclusively online: This measure extends, through the 2026 tax year, the temporary exemption, established by Ruling 175 of 2025, from the 19% VAT rate for lotteries and games of chance operated exclusively online. These activities were previously excluded from the tax under section 420 of the Tax Code.

• Reduction of the VAT exemption amount on low-value imports (minimis): During the 2026 tax year, the VAT exemption amount for goods in postal traffic, urgent shipments or express delivery shipments is reduced and will only be maintained for imports less than USD $50 (COP $187,071). This implies a substantial reduction in the exemption, since prior to the issuance of the Ruling the exempt amount was USD $200 (COP $748,284).

• Increase in the national consumption tax rate for certain types of goods: During the 2026 tax year, there will be an increase in the national consumption tax rate for automobiles, high-displacement motorcycles, yachts, boats and aircraft from 8% to 19%.

• Consumption tax on liquors, wines, aperitifs and similar products: During the 2026 tax year, these products will be taxed with a specific component of COP $750 per degree of alcohol in a 750 ml unit or its equivalent, and an ad valorem tax of 30% will be levied on the retail price, before tax and/or participation, as certified by DANE (National Administrative Department of Statistics). Prior to the issuance of this Ruling, they were taxed at COP $342 per degree of alcohol in a 750 ml unit or its equivalent, and a 25% tax was levied on the retail price, before tax and/or participation.

• Tax on the consumption of cigarettes, manufactured tobacco and similar products: During the 2026 tax year, the taxable event is the consumption of cigarettes, manufactured tobacco, derivatives, substitutes, or imitations within the jurisdiction of the departments. Handcrafted tobacco products remain excluded. The specific component is increased from COP $4,068 per pack of twenty (20 units) to COP $11,200, and a 10% ad valorem tax is implemented. Derivatives, substitutes, or imitations are now added to the taxable event, which includes a specific component of COP $2,000 per milliliter and an ad valorem tax of 30% on the retail price certified by DANE (National Administrative Department of Statistics).

• Modification of the tax base and rates of the wealth tax: During the 2026 tax year, the wealth tax will be generated from assets equal to or greater than 40,000 UVT (COP $2,094,960,000 for 2026) and the following new progressive marginal rates are established:

• Surcharge on income tax for the financial sector: During the 2026 tax year, a 15-percentage-point surcharge will be applied to the income tax rate for the financial sector. This means that the sector will have a nominal rate of 50%, and includes a 100% advance payment of the tax calculated on the taxable base declared in the previous year's income tax return.

• Prohibition of the deduction of royalties in income tax: During the 2026 tax year, the economic consideration in the form of a royalty, as provided for in sections 360 and 361 of the Colombian Constitution, will not, in principle, be considered a cost or deduction for taxpayers obligated to pay it. Therefore, the non-deductible amount will correspond to the total production cost of the non-renewable natural resources associated with generating said royalty, determined according to the formula established in the regulation. However, the deductibility of the cost associated with the royalty is exceptionally permitted when two conditions are met simultaneously: (i) that its recognition would generate a tax loss and (ii) that, if said cost or deduction were rejected, the same taxpayer would obtain a net taxable income greater than zero. It is necessary to remember that the Constitutional Court, through Judgment C-489 of 2023, declared unconstitutional the paragraph that expressly prohibited the deduction of royalties, so before the issuance of the Ruling, sections 115 of the Tax Code remained in force, which allows the deduction of 100% of taxes, fees and contributions.

• Tax for fiscal stability: During the 2026 tax year, a temporary tax is established that levies the extraction in the national territory of hydrocarbons and coal belonging to certain tariff items, which is levied at the time of the first sale or export of said resources, with a rate of 1% and validity until December 31, 2026; in practice, this measure constitutes an extension of the so-called Special Tax for Catatumbo, established temporarily in Ruling 175 of 2025.

• Complementary tax for tax regularization: During the 2026 tax year, taxpayers subject to income tax or substitute regimes who, as of January 1, 2026, possess omitted assets or non-existent liabilities, may regularize them by applying a rate of 19%. The base will be, for omitted assets, their tax cost or the technical or commercial self-assessment established by the taxpayer with technical support, which may not be less than the tax cost. In the case of goods subject to the complementary tax, the base will be their acquisition price for the purpose of establishing said cost. For non-existent liabilities, the base will be the tax value or the value reported in the last income tax return.

Additionally, the increase in net worth derived from the inclusion of the omitted assets will not generate taxable income or penalties in income and complementary taxes, nor in sales tax, the transfer pricing regime, the exogenous information, or the annual declaration of assets abroad.

• Temporary reduction of penalties and late payment interest for those subject to tax, customs and exchange obligations: Those taxpayers who, as of December 31, 2025, are in arrears in the payment of their tax, customs and exchange obligations may settle 15% of the penalties and the update of penalties provided that they pay 100% of the unfulfilled principal tax, duty, tariff or obligation; the late payment interest settled at the reduced rate of 4.5% and the reduced penalty until March 31, 2026.

• Temporary reduction of penalties and late payment interest for omission or correction of tax, customs, exchange declarations and formal obligations: Taxpayers who regularize their situation before April 30, 2026, may access penalty benefits in different cases: firstly, in the face of the omission in the presentation of tax, customs, exchange declarations corresponding to periods expired up to November 30, 2025, in which case a reduction of the penalty for late filing to 15% is granted, provided that the respective declaration is presented and the taxes or withholdings due are settled and paid together with the reduced penalty, without the payment of late payment interest being required; Secondly, regarding the correction of tax, customs, and foreign exchange returns filed up to and before December 31, 2025, when such corrections result in a higher amount payable, a decrease in the balance in favor, or a reduction in net losses, in which case the penalty for correction or inaccuracy is also reduced to 15%, under the same requirements for filing, settlement, and payment of the tax and the reduced penalty; and finally, in relation to non-compliance with formal obligations, including duties associated with the transfer pricing regime and the information return, a reduction of the penalty to 15% is allowed if the obligation is fulfilled within the established period, noting that, in all cases, the taxpayer must inform the DIAN in writing, before April 30, 2026, of compliance with the requirements and full acceptance of the adjustments made.

• Temporary application due to non-compliance with formal obligations: Taxpayers who, before the entry into force of the Ruling, have failed to comply with tax, customs or exchange obligations may remedy them until April 30, 2026 by paying a penalty equivalent to 3% of the gross income declared in the income tax return for the 2024 tax year; For those taxpayers not required to file an income tax return, the correction will proceed with the payment of 2% of the gross assets or total assets as of December 31, 2025, provided that said payment is made no later than March 31, 2026, specifying that the penalty may not exceed 1,500 UVT (COP $78,561,000 for 2026) nor be less than the minimum penalty in force, that this measure is not applicable to the failure to comply with the duty to declare or to the obligations related to the transfer pricing regime, and that the correction will only produce effects to the extent that the corresponding formal obligation is effectively fulfilled.

• Administrative litigation conciliation in tax, customs and exchange matters.

Given the complexity and scope of the tax measures adopted through Ruling 1474 of 2025, as well as their broad impact on various taxes, sectors, and formal obligations during the 2026 tax year, it is advisable that taxpayers conduct a specific analysis of their particular situation.

Forvis Mazars in Colombia has a specialized tax and legal team that can assist organizations in evaluating the effects of these provisions, identifying risks and opportunities, and implementing strategies aimed at ensuring proper regulatory compliance and optimizing their tax burden, within the framework of current legislation.