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Reform tracker: what is changing in Colombian business law and when

Argentina. For full detail on Argentina, go to The Argentine Thread.

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

Several changes with fixed dates are already law: the DTF reference rate is replaced by the three month IBR on 1 January 2027, the pension reform takes effect on 1 April 2027, and the rest day surcharge reaches 100 percent on 1 July 2027; in 2026 the week fell to 42 hours, foreign investment registration lost its six month deadline and a new customs sanctions law took effect. The main pending item is the government tax bill 004 de 2026 Cámara, filed on 20 July 2026 and still in first debate in the House Third Committee, which would raise dividend withholding for foreign shareholders from 20 to 30 percent and the financial sector surtax from 5 to 15 points. Income tax changes passed in a given year apply only from the following tax year under Constitution art. 338, and the 2027 minimum wage is due by 30 December 2026.

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. Conversions are for orientation only.

Key facts

Dividend withholding for foreign shareholders (current)	20 %Estatuto Tributario art. 245, as of 2026-10-26 · in force
Dividend withholding for foreign shareholders under bill 004 de 2026 Cámara	30 %Proyecto de Ley 004 de 2026 Cámara art. 14, as of 2026-10-26 · pending
Financial sector surtax (current, 2023 to 2027)	5 percentage pointsEstatuto Tributario art. 240 par. 2, as of 2026-10-26 · in force
Financial sector surtax under bill 004 de 2026 Cámara	15 percentage pointsProyecto de Ley 004 de 2026 Cámara art. 12, as of 2026-10-26 · pending
Elective rate on gross digital income, significant economic presence (current)	3 %Estatuto Tributario art. 20-3 par. 2, as of 2026-10-26 · in force
Elective SEP rate under bill 004 de 2026 Cámara	5 %Proyecto de Ley 004 de 2026 Cámara art. 29, as of 2026-10-26 · pending
Tax reform bill 004 de 2026 Cámara status	First debate, House Third Committee; rapporteur assigned 1 October 2026 textProyecto de Ley 004 de 2026 Cámara, as of 2026-10-26 · pending
Pension reform (Ley 2381 de 2024) effective date	2027-04-01 dateLey 2381 de 2024; Sentencia C-264 de 2026, as of 2026-10-26 · pending
Rest day and holiday surcharge	90 (100 from 1 July 2027) %Código Sustantivo del Trabajo art. 179, as of 2026-07-01 · in force
Ordinary working week	42 hoursLey 2101 de 2021 art. 3, as of 2026-07-15 · in force
DTF references read as three month IBR	From 1 January 2027 dateLey 2294 de 2023 art. 314, as of 2026-10-26 · pending

The rule

1. Pending: the government tax bill, filed in the House on 20 July 2026 by the Minister of Finance, is in committee (Comisión Tercera, first debate in the House) with its rapporteur assigned on 1 October 2026 (Gaceta 868 de 2026). It needs four debates (House committee and plenary, then Senate committee and plenary). Its explanatory statement targets additional revenue of COP 21.9 trillion for 2027, about 1.0 percent of GDP.Proyecto de Ley 004 de 2026 Cámara (government tax reform bill), Whole bill; status on the House reform page, 2026-07-20 official text · verified 2026-10-26 · changed: Filed 20 July 2026; rapporteur assigned 1 October 2026; still in first debate as of 26 October 2026.

2. Pending: art. 14 of the bill would raise the income tax on dividends paid to foreign companies and non resident individuals (Estatuto Tributario art. 245, first paragraph) from the current 20 percent to 30 percent; art. 15 would set 30 percent for dividends paid to Colombian permanent establishments of foreign companies out of untaxed profits (art. 246).
Example: On a COP 650,000,000 dividend to a foreign parent: withholding COP 130,000,000 today (20 percent) against COP 195,000,000 under the bill (30 percent), net COP 520,000,000 against COP 455,000,000. / On US$100 of dividend: US$80 net today against US$70 under the bill, before any treaty relief.Proyecto de Ley 004 de 2026 Cámara (government tax reform bill); Estatuto Tributario art. 245 as amended by Ley 2277 de 2022 art. 4, Bill art. 14 and 15; ET art. 245 and 246, 2026-07-20 official text · verified 2026-10-26

3. Pending: art. 12 of the bill would raise the surtax for financial institutions, insurers, brokers and similar entities (Estatuto Tributario art. 240 par. 2) to 15 additional points, a total rate of 50 percent; the current text sets 5 additional points for tax years 2023 to 2027, a total of 40 percent.Proyecto de Ley 004 de 2026 Cámara (government tax reform bill); Estatuto Tributario art. 240 par. 2 as amended by Ley 2277 de 2022 art. 10, Bill art. 12; ET art. 240 par. 2, 2026-07-20 official text · verified 2026-10-26

4. Pending: art. 29 of the bill would raise the elective rate on gross income from digital goods and services sold from abroad to users in Colombia by non residents with significant economic presence (Estatuto Tributario art. 20-3 par. 2) from 3 percent to 5 percent.Proyecto de Ley 004 de 2026 Cámara (government tax reform bill); Estatuto Tributario art. 20-3 par. 2 as added by Ley 2277 de 2022 art. 57, Bill art. 29; ET art. 20-3 par. 2, 2026-07-20 official text · verified 2026-10-26

5. Laws on taxes whose base is the result of facts over a period (such as income tax) cannot apply until the period that begins after the law takes effect. An income tax change enacted during 2026 would therefore apply from tax year 2027 at the earliest.Constitución Política de Colombia de 1991, Art. 338, third paragraph, 1991-07-20 official text · verified 2026-10-26

6. In force from 1 January 2027: Banco de la República publishes the DTF only until 31 December 2026; from 1 January 2027, references to the DTF in laws, decrees and administrative acts are read as references to the three month IBR in effective annual terms. Contracting parties may agree a replacement index.Ley 2294 de 2023, Art. 314, 2023-05-19 official text · verified 2026-10-26 · changed: DTF replaced by three month IBR in legal references from 1 January 2027.

7. In force from 1 April 2027: the pension reform (Ley 2381 de 2024, pillar system) was suspended pending constitutional review; the Constitutional Court upheld it on procedural grounds in Sentencia C-264 of 25 August 2026, and the articles declared constitutional take effect from 1 April 2027.Ley 2381 de 2024; Corte Constitucional Sentencia C-264 de 2026, Whole law (vigencia note), 2024-07-16 official text · verified 2026-10-26 · changed: Sentencia C-264 of 25 August 2026 lifted the suspension; the reform takes effect on 1 April 2027.

8. Phased labor changes: the surcharge for work on the mandatory rest day rose to 80 percent from 1 July 2025 and 90 percent from 1 July 2026, and reaches the full 100 percent from 1 July 2027; night work runs from 7 p.m. to 6 a.m.Código Sustantivo del Trabajo, art. 179 as amended by Ley 2466 de 2025 art. 14; art. 160, Art. 179, transitional paragraph; art. 160, 2025-06-25 official text · verified 2026-10-26 · changed: Rest day surcharge 90 percent since 1 July 2026; 100 percent from 1 July 2027.

9. The ordinary working week reached 42 hours, the last step of the gradual reduction from 48 hours (47, 46, then two hours a year from the fourth year after the law of 15 July 2021).Ley 2101 de 2021, Art. 3, 2021-07-15 official text · verified 2026-10-26 · changed: 42 hour week in force from 15 July 2026.

10. Due by 30 December 2026: the 2027 minimum wage. The tripartite commission must decide by 15 December; failing consensus the Government sets it by decree by 30 December. The 2026 wage (COP 1,750,905, up 23 percent) was set by Decreto 1469 de 2025, which the Consejo de Estado suspended for a period in 2026.Código Sustantivo del Trabajo art. 147 num. 2 (Ley 278 de 1996 art. 8); Decreto 1469 de 2025, Art. 147 num. 2, paragraph, 1996-05-10 official text · verified 2026-10-26

11. In force since August 2026 (decree dated 5 August 2026, effective the day after its publication in the Diario Oficial): foreign investors register investments and their changes and cancellations with Banco de la República at any time; the six month deadline for changes in holder, destination or receiving company and for cancellations was removed, and the change applies to pending exchange sanction proceedings.Decreto 1044 de 2026 amending Decreto 1068 de 2015, Art. 1 (art. 2.17.2.5.1.1), par. 2 and art. 2, 2026-08-05 official text · verified 2026-10-26 · changed: Six month FDI registration deadline removed by the decree of 5 August 2026, effective the day after its publication.

12. In force since 19 June 2026: a new customs sanctions and seizure regime replaced Decreto Ley 920 de 2023, taking effect on promulgation.Ley 2586 de 2026, Art. 114, 2026-06-19 official text · verified 2026-10-26 · changed: Decreto Ley 920 de 2023 repealed; new customs sanctions regime from 19 June 2026.

13. In force for Colombia since 12 September 2026: the UN Convention on International Settlement Agreements Resulting from Mediation (Singapore Convention), signed 7 August 2019 and ratified 12 March 2026.United Nations Convention on International Settlement Agreements Resulting from Mediation (UNCITRAL status table), Status entry for Colombia, 2026-09-12 official text · verified 2026-10-26 · changed: Entered into force for Colombia on 12 September 2026.

Area	Change	Effective date or status	Legal basis
Customs	New customs sanctions and seizure regime; Decreto Ley 920 de 2023 repealed	In force 19 June 2026	Ley 2586 de 2026 art. 114
Labor	Rest day surcharge 90 percent	In force 1 July 2026	CST art. 179
Labor	42 hour week	In force 15 July 2026	Ley 2101 de 2021 art. 3
FX	No deadline to register FDI changes and cancellations	In force August 2026	Decreto 1044 de 2026
Disputes	Singapore Mediation Convention	In force 12 September 2026	UNCITRAL status
Labor	2027 minimum wage	Commission by 15 December; decree by 30 December 2026	CST art. 147
Finance	DTF references become three month IBR	1 January 2027	Ley 2294 de 2023 art. 314
Pensions	Pillar pension system	1 April 2027	Ley 2381 de 2024; C-264 de 2026
Labor	Rest day surcharge 100 percent	1 July 2027	CST art. 179
Tax	Dividend withholding 20 to 30 percent; financial surtax 5 to 15 points; SEP elective rate 3 to 5 percent	Pending, first debate in the House	Proyecto de Ley 004 de 2026 Cámara art. 12, 14, 29

Reform tracker at 26 October 2026, by effective date. Status per the official texts and the House reform page.

	Current (20%)	Bill (30%)
Dividend	US$100	US$100
Withholding	US$20	US$30
Net to parent	US$80	US$70

Dividend of US$100 paid by a Colombian company to a foreign parent with no applicable treaty, current law against the bill. Rates from Estatuto Tributario art. 245 and bill art. 14.

Worked example

A foreign parent with COP 1,000,000,000 of taxable profit in its Colombian SAS pays 35 percent income tax (COP 350,000,000) and distributes COP 650,000,000. Withholding is COP 130,000,000 at 20 percent today, leaving COP 520,000,000 (about US$164,639); at the bill's 30 percent it would be COP 195,000,000, leaving COP 455,000,000 (about US$144,059). The combined burden would rise from 48 to 54.5 percent of pre tax profit.
An Argentine parent has no general income tax treaty with Colombia to reduce the dividend rate: DIAN lists only a maritime and air navigation agreement with Argentina (Ley 15 de 1970), so the domestic rate, now 20 percent and 30 percent if the bill passes, applies in full. See The Argentine Thread for the Argentine side.

Step by step

1. Model 2027 dividends at both 20 and 30 percent withholding until the tax bill is passed or archived, and check treaty relief in taxes/tax-treaties.
2. Review contracts and loans indexed to the DTF before 1 January 2027.
3. Budget the 2027 minimum wage once the decree is issued (by 30 December 2026) and the 100 percent rest day surcharge from 1 July 2027.
4. Prepare payroll and pension administration for the pillar system from 1 April 2027.
5. Recheck this tracker and the changelog after each congressional debate on the tax bill.

Common traps

The bill text can change in every debate; the rates shown are the government's filed text, not law.
An income tax change enacted late in 2026 cannot apply to tax year 2026 (Constitution art. 338); check each article's effective date in the final text, since the bill itself says it takes effect on promulgation (bill art. 32).
The financial sector surtax in force today covers tax years 2023 to 2027 only; the bill's text for art. 240 par. 2 states no end year.
Decreto 1044 de 2026 removed the exchange deadline, but not the separate tax return for changes in ownership of foreign investment (Decreto 1625 de 2016 art. 1.6.1.13.2.19), as its paragraph 1 states.

Sources

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