Published on June 26, 2026
The Full Chamber of the Constitutional Court declared the conditional constitutionality of Legislative Decree 150 of 2026, through which the National Government declared a State of Economic, Social, and Ecological Emergency in February of this year.
This decision is particularly significant in tax matters, as, pursuant to Legislative Decree 150 of 2026, the National Government issued Legislative Decree 173 of February 24, 2026, which created, for a single taxable year, a wealth tax applicable to legal entities, de facto partnerships, and permanent establishments of foreign entities by adding subsection 6 to Article 292-3 of the Colombian Tax Code. By upholding the constitutionality of the decree declaring the emergency, the Constitutional Court effectively confirms the enforceability of the tax. Al avalar el decreto matriz de la emergencia, la Corte Constitucional estaría ratificando la exigibilidad del e impuesto.
It should be recalled that the taxpayers subject to this tax are legal entities and de facto partnerships required to file income tax returns whose net equity as of the relevant date is equal to or greater than 200,000 UVT (approximately COP 10.474 billion), expressly excluding entities in the healthcare sector, entities under government intervention, and public utility companies located in municipalities declared to be in a state of public calamity within the emergency zone.
The general tax rate is 0.5% of the taxable base, with a differentiated rate of 1.6% applicable to the financial sector and to extractive activities in the mining and hydrocarbon industries.
With respect to the declaration of constitutionality of the emergency, the Court limited its territorial scope to the 181 municipalities previously identified by the National Unit for Disaster Risk Management (UNGRD) as having been affected by flooding. It also added a paragraph providing that the emergency measures may only be extended to other municipalities if a specific and demonstrable impact arising from the event that gave rise to the declaration of the state of emergency is established.
The Full Chamber also excluded three categories of measures that it considered unrelated to the circumstances giving rise to the state of emergency. It declared unconstitutional the provisions concerning the financial crisis affecting electricity companies and the continuity of electricity services; the extraordinary powers granted to the National Land Agency with respect to the demarcation of State-owned land, the recovery of public lands (baldíos), and other agrarian proceedings; and the provisions relating to the updating of Watershed Management Plans.
With regard to the provisions declared constitutional, the Court established strict conditions, holding that the state of emergency may not be used to implement structural reforms or long-term reconstruction measures unless the Government demonstrates a close connection between such measures and the rehabilitation phase.
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