February 25, 2026

Extraordinary Net Worth Tax for Legal Entities

The National Government issued Decree 0173 on February 24, 2026, within the framework of the State of Economic, Social, and Ecological Emergency declared through Legislative Decree 0150 of 2026. This decree introduces an extraordinary net worth tax for legal entities, which will have an immediate impact on medium and large companies across all economic sectors, with limited exceptions.

Who must pay this tax

Legal entities and de facto companies subject to income tax will be required to pay this tax when their net equity as of March 1, 2026 is equal to or exceeds 200,000 UVT (COP 10,474,800,000).

The tax does not apply to companies in the agricultural and healthcare sectors, state-intervened entities, or public utility service providers in municipalities affected by the emergency.

Tax rate

General rate: 0.50%
Special rate: 1.6% for the financial and extractive sectors (coal and oil), among others

Tax base

Net equity as of March 1, 2026, excluding shares, technical reserves, pension contributions, and environmental assets related to water and sanitation infrastructure.

Immediate compliance deadlines

Filing and payment of the first installment (50%): April 1, 2026
Second installment (50%): May 4, 2026

Risks and anti-avoidance measures

The decree establishes enhanced penalties for accounting and/or tax adjustments that artificially reduce net equity or involve the inclusion of non-existent or unauthorized liabilities.

This decree requires companies to immediately assess their financial position, liquidity, and corporate structure. It may also impact cash flow during the first half of the year and financial projections for 2026.

We recommend verifying net equity as of March 1, confirming whether any exclusions apply, and anticipating the impact on liquidity and financial planning.