On 17 September 2026, the Colombian government enacted Legislative Decree 1417 under the state of economic emergency, introducing urgent tax measures to support economic recovery. The decree includes temporary modifications to income tax rates for certain sectors, accelerated depreciation rules for new productive assets, and VAT exemptions for essential goods. These measures are valid for a period of six months unless extended by Congress. The decree was published in the Official Gazette on 17 September 2026 and applies retroactively to 1 January 2026 for income tax provisions.
Key Takeaways
- Sectoral Income Tax Relief: Companies in the tourism, hospitality, and creative industries benefit from a reduced income tax rate of 25% (down from 35%) for the 2026 tax year.
- Accelerated Depreciation: New machinery and equipment acquired between September 2026 and March 2027 qualify for 100% first-year depreciation, improving cash flow for capital-intensive sectors.
- VAT Exemptions: The decree exempts from VAT the sale and import of basic foodstuffs, medicines, and agricultural inputs to mitigate inflationary pressures on low-income households.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement