Colombia Proposes 2026 Tax Reform

Colombia’s 2026 tax reform bill, submitted 1 September 2025, aims to raise COP 26.3 trillion, revising VAT, personal income tax, net wealth tax, and capital gains tax to strengthen government revenues.

Key VAT changes include 5% reduced rate for hybrid vehicles, removal of tourist service exemptions for foreigners, and phasing out preferential liquid fuel rates between 2026–2028.

Personal income tax top rate rises to 41% for incomes above 31,000 UVT, while financial sector surcharges increase to 15%, and coal and oil surcharges are harmonized under the reform.