{"id":14755,"date":"2025-06-27T12:24:08","date_gmt":"2025-06-27T17:24:08","guid":{"rendered":"https:\/\/nexo.legal\/?p=14755"},"modified":"2025-07-15T17:18:14","modified_gmt":"2025-07-15T22:18:14","slug":"withholding-tax-2025-colombia","status":"publish","type":"post","link":"https:\/\/nexo.legal\/es\/withholding-tax-2025-colombia\/","title":{"rendered":"Retenci\u00f3n en la fuente 2025: bases m\u00e1s bajas, autorretenciones m\u00e1s altas"},"content":{"rendered":"\t\t
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As of June 1, 2025, Decree 572 of 2025 came into effect, bringing important changes for legal entities in Colombia.<\/span>
<\/span>In short? It\u2019s now easier to become subject to withholding tax, and self-withholding rates have increased for many sectors.<\/span><\/p>

Below, we explain in simple terms what changed and how it could impact you.<\/span><\/p>

What changed with the withholding tax?<\/b><\/h3>

One of the main modifications in the decree is the reduction of the minimum thresholds for applying withholding tax.<\/span>
<\/span>This means that withholding must now be applied to lower amounts. This applies, for example:<\/span><\/p>

  • Services:<\/b> the previous threshold was $199,000 and is now $100,000 COP. Rate: <\/span>4%<\/b><\/li>
  • General purchases:<\/b> previous threshold: $1,345,000 \u2192 now: $498,000 COP. Rate: <\/span>2.5%<\/b><\/li>
  • Real estate for residential use:<\/b> previous threshold: $995,980,000 \u2192 now: $497,990,000 COP. Rate: <\/span>1% or 2.5%<\/b><\/li><\/ul>

    For purchases of parchment or cherry coffee, the new threshold is <\/span>70 UVT<\/b> (equivalent to <\/span>$3,294,550 COP<\/b> in 2025).<\/span><\/p>

    Rates were also adjusted for the purchase of gold, real estate, and other sensitive sectors, among others.<\/span><\/p>

    What does this mean?<\/b><\/h3>

    More transactions will be subject to withholding, which may affect your cash flow if you don\u2019t plan properly.<\/span><\/p>

    And what happened with self-withholding?<\/b><\/h3>

    If you\u2019re a self-withholder (meaning you apply withholding on yourself as an advance on income tax), this decree affects you too.<\/span>
    <\/span>New self-withholding rates were established by economic activity, grouped under what the decree calls \u201crate groups.\u201d<\/span><\/p>

    Some of the main impacted activities are:<\/span><\/p>

    • Agriculture, livestock, fishing, and mining<\/span><\/li>
    • Manufacturing and industrial activities<\/span><\/li>
    • Wholesale and retail trade<\/span><\/li>
    • Professional, technical, financial, and consulting services<\/span><\/li>
    • Construction, transportation, hospitality, and tourism<\/span><\/li><\/ul>

      In many cases, the rates increased because the government found that the previous self-withholding amounts weren\u2019t covering the actual tax liability.<\/span>
      <\/span>That is, companies were paying less throughout the year and leaving large balances for the fiscal year-end, which affected the government\u2019s tax collection.<\/span><\/p>

      With this measure, the goal is for taxpayers to pay proportionally to their real monthly income, avoiding year-end tax accumulations.<\/span><\/p>

      Why are they doing this?<\/b><\/h3>

      This adjustment is no coincidence. The government is aiming to:<\/span><\/p>

      • Improve tax collection efficiency (ensuring taxes are paid as income is generated, not a year later)<\/span><\/li>
      • Reduce evasion and abuse through rate arbitrage<\/span><\/li>
      • Ensure that high-performing sectors, like agriculture or exports, contribute proportionally more<\/span><\/li>
      • Make the system fairer among similar activities by grouping them under the same rate<\/span><\/li><\/ul>

        What effects could this have on your company?<\/b><\/h3>
        • More withholding on invoices:<\/b> If your clients didn\u2019t withhold before because you didn\u2019t exceed the threshold, they probably will now<\/span><\/li>
        • More cash flow committed:<\/b> As a self-withholder, you may find yourself paying more each month than you did before<\/span><\/li>
        • Possible tax refunds:<\/b> If you end up overpaying, you can request a refund or compensation as outlined in Articles 850 and following of the Tax Code<\/span><\/li>
        • Increased tax oversight:<\/b> There will be stricter data cross-checking between what you withhold and what you actually declare<\/span><\/li><\/ul>

          So\u2026 what should you do?<\/b><\/h3>

          \ud83d\udc49 Review your registered economic activity in the RUT and compare it with the official rate list<\/span>
          <\/span>\ud83d\udc49 Adjust your 2025 budgets to reflect the new rates<\/span>
          <\/span>\ud83d\udc49 Do tax planning: it can save you headaches during the 2025 fiscal close and 2026 advance payment<\/span><\/p>

          At <\/span>Nexo Legal<\/b>, we help you:<\/span><\/p>

          \u2705 Review your current economic classification<\/span>
          <\/span>\u2705 Determine whether your self-withholding rate has changed<\/span>
          <\/span>\u2705 Adjust your invoicing and accounting practices<\/span>
          <\/span>\u2705 Prepare for the impact of this decree on your cash flow and tax filings<\/span><\/p>

          \ud83d\udce9 If you have questions or need personalized support, message us.<\/span>
          <\/span>We\u2019re ready to help you comply \u2014 with no surprises \u2014 and optimize your tax burden.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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