In response to the severe flooding affecting eight Colombian departments (Antioquia, Bolívar, Cesar, Córdoba, Chocó, La Guajira, Magdalena, and Sucre), and following the suspension by the Constitutional Court of Economic Emergency Decree No. 1474 of December 29, 2025, the National Government has once again declared a State of Economic, Social, and Ecological Emergency through Decree No. 0150 of February 11, 2026.
Pursuant to these powers, on February 24, 2026, the Government issued Decree No. 0179, establishing a temporary Net Wealth Tax (hereinafter “NWT” ) applicable to legal entities and de facto partnerships which currently file income tax returns and which of March 1 2026, hold a net equity exceeding 200,000 Tax Value Units (UVTs), equivalent to COP 10,474,800,000 / USD 2.836.324,05.
Taxpayers and Applicable Rates
The general tax rate applicable to the legal entities and de facto partnerships described above is 0.5%.
However, a higher rate of 1.6% applies to the following entities:
- Financial institutions
- Insurance and reinsurance companies
- Brokerage firms and agricultural brokerage companies
- Commodity and agricultural exchanges
- Securities market infrastructure providers
- Legal entities whose economic activity corresponds to:
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- Coal mining (CIIU 0510)
- Lignite coal mining (CIIU 0520)
- Crude oil extraction (CIIU 0610)
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Taxable Base
The taxable base corresponds to the assets owned as of March 1, 2026, minus
the liabilities owed, excluding the net asset value of the following assets:
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- Equity interests in Colombian companies,whether held directly or indirectly (including through non-legal-entity investment vehicles).
In the case of indirect ownership, the exclusion shall be proportional to the participation such shares represent within the gross assets of the investment vehicle.
Trust companies, collective investment fund managers, voluntary pension fund administrators, and life insurance companies must certify both the net asset value and the relevant percentage within the fiduciary patrimony or fund.
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- Fixed real estate assets acquired and/or allocated for environmental control and improvement by public water and sewerage companies.
- Technical reserves of Fogafín and Fogacoop.
- Cooperatives and similar entities referred to in Article 19-4 of the Colombian Tax Codewhich may exclude the tax value of members’ capital contributions.
- The net tax value of fixed real estate assets acquired and/or allocated for environmental control and improvement by public water and sewerage companies.
Companies that undergo a spin-off between February 24 and March 1, 2026, must aggregate the corresponding net equity amounts and pay the Net Wealth Tax to the extent that the combined amount exceeds the threshold.
In the case of family compensation funds, employee funds, and trade associations, the taxable base shall consist of the portion of net equity attributable to activities subject to income tax.
Filing of the Net Wealth Tax Return and payment of first installment (50%): 1 April 1, 2026Second installment (Remaining 50%): May 4, 2026.
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