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Tax audits and disputes in Colombia: review periods, the audit benefit, DIAN procedure, appeals and penalties

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

DIAN can review a tax return for three years from the filing deadline, five years if it shows losses or the taxpayer is under transfer pricing rules, and only six or twelve months under the audit benefit for 2022 to 2026 returns that raise tax by 35 or 25 percent. Audits run through a special requirement, a three month answer and an official assessment, then a two month reconsideration request and a four month window to sue. Late filing costs 5 percent a month, inaccuracy 100 percent of the tax difference, and late interest ran at 26.59 percent a year in October 2026.

USD figures use the TRM 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 datos.gov.co. UVT amounts use the 2026 UVT of COP 52,374 (DIAN Resolución 000238 de 2025). Conversions are for orientation only.

Key facts

General period after which a filed return becomes final	3 yearsEstatuto Tributario art. 714, as of 2026-10-26 · in force
Review period for returns with tax losses or under transfer pricing	5 yearsLey 2010 de 2019 art. 117, as of 2026-10-26 · in force
Audit benefit: months to finality if net income tax rises 35 percent or more (tax years 2022 to 2026)	6 monthsEstatuto Tributario art. 689-3; Ley 2294 de 2023 art. 69, as of 2026-10-26 · in force
Audit benefit: months to finality if net income tax rises 25 percent or more (tax years 2022 to 2026)	12 monthsEstatuto Tributario art. 689-3; Ley 2294 de 2023 art. 69, as of 2026-10-26 · in force
Deadline to file a request for reconsideration	2 monthsEstatuto Tributario art. 720, as of 2026-10-26 · in force
Time for DIAN to decide the reconsideration before positive silence	1 yearEstatuto Tributario art. 732 and 734, as of 2026-10-26 · in force
Deadline to sue in the administrative courts	4 monthsLey 1437 de 2011 art. 164, as of 2026-10-26 · in force
Late filing penalty per month, share of tax due (cap 100 percent)	5 %Estatuto Tributario art. 641, as of 2026-10-26 · in force
Inaccuracy penalty, share of the tax difference	100 %Estatuto Tributario art. 648, as of 2026-10-26 · in force
Minimum penalty	10 UVTEstatuto Tributario art. 639, as of 2026-10-26 · in force
Late payment interest on taxes, October 2026 (usury rate 28.59 percent less 2 points)	26.59 % a yearEstatuto Tributario art. 635; SFC Resolución 1472 de 2026, as of 2026-10-26 · in force
UVT for 2026	52374 COPDIAN Resolución 000238 de 2025, as of 2026-10-26 · in force
TRM used for USD conversions (valid 24 to 26 October 2026)	3158.43 COP per USDOfficial TRM series, Superintendencia Financiera de Colombia, as of 2026-10-24 · in force

The rule

1. A tax return becomes final if DIAN does not notify a special requirement within three years after the filing deadline (or after actual filing, if filed late); a return with a refundable balance becomes final three years after the refund request. Returns of taxpayers that determine or offset tax losses, or that are subject to transfer pricing rules, become final after five years.Estatuto Tributario (Decreto 624 de 1989), art. 714 as amended by Ley 1819 de 2016 art. 277; Ley 2010 de 2019 art. 117, Art. 714, first to third paragraphs; Ley 2010 de 2019 art. 117, 2019-12-27 official text · verified 2026-10-26

2. Audit benefit: for tax years 2022 to 2026, an income tax return filed and paid on time that increases net income tax by at least 35 percent over the prior year becomes final six months after filing, and one with an increase of at least 25 percent after twelve months, unless DIAN notifies a summons or special requirement in that period. It does not apply to taxpayers with benefits based on location, where the prior year tax was under 71 UVT, or where declared withholdings are false; losses remain open to review.
Example: 2025 net income tax of COP 100,000,000: a 2026 return with tax of COP 135,000,000 or more, filed and paid on time, is final six months after filing; with COP 125,000,000 or more, after twelve months. Prior year tax must be at least 71 UVT (COP 3,718,554). / About US$31,661 of prior year tax: about US$42,743 for the six month benefit.Estatuto Tributario art. 689-3, added by Ley 2155 de 2021 art. 51; extended to tax years 2024, 2025 and 2026 by Ley 2294 de 2023 art. 69, Art. 689-3; Ley 2294 de 2023 art. 69, 2023-05-19 official text · verified 2026-10-26

3. Before issuing an official assessment DIAN must send, once, a special requirement listing every point it proposes to change; it must be notified within the three year period. The taxpayer has three months to answer, object and request evidence. DIAN then has six months from the deadline to answer to notify the official assessment, which may only cover points raised in the requirement.Estatuto Tributario, art. 703, art. 705 as amended by Ley 1819 de 2016 art. 276, art. 707, art. 710 as amended by Ley 223 de 1995 art. 135, art. 711, Art. 703, 705, 707, 710 and 711, 2016-12-29 official text · verified 2026-10-26

4. Official assessments, sanction resolutions and other DIAN tax acts can be challenged by a request for reconsideration, filed within two months of notification. If the taxpayer properly answered the special requirement, it may go straight to the administrative courts within four months of the official assessment. DIAN has one year to decide the reconsideration; if it does not, the appeal is deemed decided in the taxpayer's favour.Estatuto Tributario, art. 720 as amended by Ley 6 de 1992 art. 67 and par. added by Ley 223 de 1995 art. 283; art. 732; art. 734, Art. 720 and paragraph; art. 732; art. 734, 1995-12-20 official text · verified 2026-10-26

5. After the administrative stage, the taxpayer may bring an action for annulment and restoration of rights before the administrative courts within four months from the day after notification of the final act.
Cost to do it: Court proceedings require a lawyer; fees are market priced and not set by law.Ley 1437 de 2011 (Código de Procedimiento Administrativo y de lo Contencioso Administrativo), Art. 164, num. 2 lit. d, 2011-01-18 official text · verified 2026-10-26

6. Late filing penalty: 5 percent of the tax or withholding due per month or part month of delay, up to 100 percent; if no tax is due, 0.5 percent of gross income per month, capped at the lowest of 5 percent of that income, twice any refundable balance, or 2,500 UVT. Failure to file after a summons: 20 percent of bank deposits or gross income for income tax, 10 percent for VAT, and 10 percent of payments or 100 percent of the last declared withholdings for withholding returns. Corrections that increase tax: 10 percent of the increase if made before a summons, 20 percent after it.
Example: Income tax of COP 200,000,000 filed three months late: penalty COP 30,000,000 (15 percent) plus late interest. 2,500 UVT cap = COP 130,935,000. / About US$63,323 of tax: penalty of about US$9,498.Estatuto Tributario, art. 641; art. 643 as amended by Ley 1819 de 2016 art. 284; art. 644 as amended by Ley 1819 de 2016 art. 285, Art. 641 first to third paragraphs; art. 643 num. 1 to 3; art. 644 num. 1 and 2, 2016-12-29 official text · verified 2026-10-26

7. Inaccuracy penalty: 100 percent of the difference between the tax determined by DIAN and the tax declared; 200 percent where assets are omitted or non existent liabilities included; 160 percent where it results from purchases from suppliers declared fictitious or from tax abuse. No inaccuracy arises from a reasonable interpretation of the law if the facts and figures declared are complete and true.
Example: Deductions of COP 100,000,000 rejected: extra tax COP 35,000,000 plus a penalty of COP 35,000,000 and interest. / About US$31,661 rejected: about US$11,081 of tax and US$11,081 of penalty.Estatuto Tributario, art. 647 as amended by Ley 1819 de 2016 art. 287; art. 648 as amended by Ley 1819 de 2016 art. 288, Art. 647 num. 1 to 5 and par. 2; art. 648 first paragraph and num. 1 and 2, 2016-12-29 official text · verified 2026-10-26

8. Penalties are reduced to 50 percent when self assessed with no repeat offence in the prior two years (or to 75 percent with none in the prior year), before DIAN issues charges, a special requirement or a summons; penalties proposed by DIAN are reduced to 50 percent (no sanctioned repeat in four years) or 75 percent (none in two years) if accepted and the breach corrected. The minimum penalty is 10 UVT.
Example: Minimum penalty in 2026: 10 UVT = COP 523,740. / About US$166.Estatuto Tributario, art. 640 as amended by Ley 1819 de 2016 art. 282; art. 639 as amended by Ley 1819 de 2016 art. 280, Art. 640 num. 1 to 4; art. 639, 2016-12-29 official text · verified 2026-10-26

9. Late payment interest accrues daily at the consumer credit usury rate certified by the Superintendencia Financiera less two points; it also applies to departmental and municipal taxes. The usury rate certified for October 2026 is 28.59 percent a year, giving 26.59 percent.
Example: COP 100,000,000 paid one year late: about COP 26,590,000 of interest at the October 2026 rate. / About US$31,661 one year late: about US$8,419 of interest.Estatuto Tributario, art. 635 as amended by Ley 1607 de 2012 art. 141 and Ley 1819 de 2016 art. 279; Superintendencia Financiera Resolución 1472 de 2026, Art. 635, 2026-09-30 official text · verified 2026-10-26

10. DIAN may recharacterise any operation or series of operations that constitutes tax abuse, meaning the use of artificial acts without apparent economic or commercial purpose to obtain a tax advantage, regardless of subjective intent. It must first notify a special summons for abuse, which the taxpayer has three months to answer, suspending the review period, and the requirement needs approval from senior DIAN officials.Estatuto Tributario, art. 869 as amended by Ley 1819 de 2016 art. 300; art. 869-1 as amended by Ley 1819 de 2016 art. 302, Art. 869 and par. 1 to 3; art. 869-1, 2016-12-29 official text · verified 2026-10-26

11. A taxpayer may correct a return to reduce tax or increase a refund within one year after the filing deadline; the review period then runs from the correction. DIAN must pay refunds of income tax and VAT balances within 50 days of a complete and timely request.Estatuto Tributario, art. 589 as amended by Ley 1819 de 2016 art. 274; art. 855 as amended by Ley 1430 de 2010 art. 19, Art. 589; art. 855 first paragraph, 2016-12-29 official text · verified 2026-10-26

Stage	Time limit	Norm
DIAN notifies special requirement	Within 3 years of the filing deadline (5 years for losses or transfer pricing)	Art. 705, 714; Ley 2010 art. 117
Taxpayer answers	3 months from notification	Art. 707
DIAN notifies official assessment	6 months after the answer deadline	Art. 710
Request for reconsideration	2 months from notification of the assessment	Art. 720
DIAN decides reconsideration	1 year, otherwise deemed in the taxpayer's favour	Art. 732, 734
Action in the administrative courts	4 months from notification of the final act (or directly after the assessment if the requirement was answered)	Ley 1437 art. 164; art. 720 par.

Timeline of a Colombian income tax audit and dispute

Worked example

DIAN rejects COP 100,000,000 (about US$31,661) of deductions in a 2026 return: the company faces COP 35,000,000 of extra tax, a 100 percent inaccuracy penalty of COP 35,000,000 (reduced to 50 or 75 percent if accepted and corrected under art. 640, or by the art. 709 and 713 mechanisms), and interest at 26.59 percent a year from the original payment date.

Step by step

Calendar the review period of each return: three years, five years for returns with losses or transfer pricing, or six or twelve months under the audit benefit.
Answer every DIAN summons and special requirement within the deadline, with evidence: answering the requirement preserves the option to go straight to court.
If an assessment arrives, decide within two months between reconsideration and, if the requirement was answered, a court action within four months.
Correct errors voluntarily before DIAN acts to keep the 10 percent correction penalty and the 50 percent reduction (art. 644 and 640).
Keep supporting documents and electronic invoices for the whole review period.

Common traps

The audit benefit does not protect tax losses, which DIAN can still review (art. 689-3).
A late return with tax due costs 5 percent per month up to 100 percent, plus interest at 26.59 percent a year in October 2026 (art. 641 and 635).
Omitted assets or fake liabilities double the inaccuracy penalty to 200 percent (art. 648 num. 1).
If DIAN fails to decide a reconsideration within one year, the appeal is deemed decided in the taxpayer's favour, and DIAN declares it on its own initiative or at the taxpayer's request (art. 734).

Sources

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