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Foreign currency in Colombian tax and contracts: measuring at the TRM, when exchange differences are taxed, peso payment of foreign currency obligations and the 4 per thousand financial transactions tax

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Last verified: 2026-10-26 · Status: Stable

For income tax, income, costs, assets and liabilities in foreign currency are measured at the TRM on initial recognition, and exchange differences on balance sheet items have no tax effect until the asset is collected or sold or the liability is paid; the realized difference is then taxable or deductible. Contract obligations stated in foreign currency that are not exchange operations are paid in pesos at the TRM of the date they arose unless the parties chose another date or rate, while courts use the TRM of the payment date for exchange operations. Moving money out of Colombian bank accounts generally bears the financial transactions tax (GMF) of 4 per thousand.

USD figures use the TRM (tasa representativa del mercado) of COP 3,158.43 per US dollar, valid 24 to 26 October 2026, from the official TRM series certified by the Superintendencia Financiera and published on the national open data portal. Amounts in UVT use the 2026 UVT of COP 52,374 (DIAN Resolución 000238 de 2025). Conversions are for orientation only.

Key facts

Exchange rate for initial tax measurement of foreign currency itemsTRM on the date of initial recognition textEstatuto Tributario art. 288, as of 2026-10-26 · in force
Tax effect of unrealized exchange differencesNone until collection, sale or payment textEstatuto Tributario art. 288, as of 2026-10-26 · in force
Rate to pay in pesos a non exchange obligation stipulated in foreign currencyTRM of the date incurred, unless the parties agree otherwise textResolución Externa 1 de 2018 art. 86, as of 2026-10-26 · in force
Financial transactions tax (GMF) on account debits0.4 %Estatuto Tributario art. 872, as of 2026-10-26 · in force

The rule

1. Income, costs, deductions, assets and liabilities in foreign currency are measured on initial recognition at the TRM. Fluctuations of balance sheet items in foreign currency have no tax effect until the asset is sold or collected or the liability is settled or partly paid; at that point the taxable income or deductible cost is the difference between the TRM on initial recognition and the TRM on collection or payment.Estatuto Tributario, art. 288 as added by Ley 1819 de 2016, Art. 288, 2016-12-29 official text · verified 2026-10-26
2. For tax equity purposes, assets and liabilities in foreign currency are valued in pesos at the TRM on initial recognition, less collections or payments measured at that same TRM.Estatuto Tributario, art. 269 and art. 285 as amended by Ley 1819 de 2016, Art. 269 and art. 285, 2016-12-29 official text · verified 2026-10-26
3. Obligations stipulated in foreign currency that are not exchange operations are paid in pesos at the TRM of the date they were incurred, unless the parties agreed a different reference date or rate. Exchange operations agreed in foreign currency are paid in that currency, save exceptions. When courts liquidate in pesos obligations from exchange operations, they use the TRM of the payment date. For currencies other than the US dollar, Banco de la República's daily conversion rates apply.Resolución Externa 1 de 2018 of the Board of Banco de la República, Art. 86, incisos 1 and 2, parágrafos 1 and 3; art. 1, 2018-05-25 official text · verified 2026-10-26
4. Unless expressly authorized, contracts between residents are not exchange operations and are paid in pesos; the exchange rules do not prohibit commercial invoices denominated in foreign currency, but obligations between residents are still paid in pesos. Supervised financial entities may not stipulate operations in foreign currency except authorized exchange operations, life insurance and insurance the Government allows.Decreto 1068 de 2015 art. 2.17.1.3; Resolución Externa 1 de 2018 art. 86 par. 2; DCIP-83 ch. 9 lit. i, Decreto 1068 art. 2.17.1.3; Res. Ext. 1 art. 86 par. 2; DCIP-83 ch. 9 lit. i, 2015-05-26 official text · verified 2026-10-26
5. The financial transactions tax (GMF) applies to transactions that dispose of funds deposited in current or savings accounts or in deposit accounts at Banco de la República, and to the drawing of bank drafts, at 4 per thousand, subject to the exemptions in the Estatuto Tributario.
Cost to do it: 0.4 percent of each debit: COP 4,000,000 (about US$1,266) per COP 1,000,000,000 moved, unless exempt.Estatuto Tributario, art. 871 (Ley 633 de 2000) and art. 872 as amended by Ley 1819 de 2016, Art. 871 and art. 872, 2016-12-29 official text · verified 2026-10-26
6. Fines for exchange breaches are computed with the UVT and the TRM in force on the date of the breach.Decreto Ley 2245 de 2011 (DIAN exchange sanctions regime), Art. 3, parágrafo 3, 2011-06-28 official text · verified 2026-10-26
EventDate and TRMCOP
Invoice recognized22 October 2026, COP 3,191.47COP 319,147,000
Payment24 October 2026, COP 3,158.43COP 315,843,000
Taxable exchange gain at paymentDifferenceCOP 3,304,000 (about US$1,046)

Exchange difference on a US$100,000 import payable, using official TRM values (Estatuto Tributario art. 288)

Worked example

  • A Colombian SAS books a US$100,000 supplier invoice on 22 October 2026 at the TRM of COP 3,191.47: COP 319,147,000. It pays on 24 October at COP 3,158.43: COP 315,843,000. The peso strengthened, so the SAS has a taxable exchange gain of COP 3,304,000 (about US$1,046) when it pays, not before (art. 288).
  • Had the invoice stayed unpaid at year end, any accounting revaluation would have no tax effect that year; the difference is taxed only when the payable is settled.
  • If the SAS buys the dollars from a peso current account, the debit bears GMF of 4 per thousand on the pesos debited, about COP 1,263,372, unless an exemption applies.

Step by step

  1. 1. Record each foreign currency item at the TRM of initial recognition in the tax ledger.
  2. 2. Keep accounting revaluations separate; compute the taxable or deductible exchange difference only on collection, sale or payment.
  3. 3. In domestic contracts priced in foreign currency, state the TRM date or rate used to pay in pesos.
  4. 4. Check GMF exemptions before routing large payments through peso accounts.

Common traps

  • Deducting unrealized exchange losses. They have no tax effect until the liability is paid (Estatuto Tributario art. 288).
  • Silence on the conversion date in a peso settled contract. The default is the TRM of the date the obligation arose, which may not be what the parties expect (Res. Ext. 1 de 2018 art. 86).
  • Forgetting GMF in cash planning for remittances and intercompany payments (Estatuto Tributario art. 872).

Sources

Related pages

Related: Colombia country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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