New Wealth Tax for Legal Entities

Decree 0173 of 2026 

Through Legislative Decree 0173 of February 24, 2026, the National Government, within the framework of the Economic, Social, and Ecological State of Emergency declared due to the climate crisis in several departments of the country (Decree 0150 of 2026), has established a new wealth tax for legal entities.   

Below, we present the most relevant aspects of this new tax obligation and some initial ideas for analysis..

1. Key aspects of the new Wealth Tax 

Taxpayers (Who pays?): 

Legal entities and de facto partnerships that pay income tax.

Important exclusions: The following will not be liable for the tax: (i) companies in the health sector, (ii) companies under state intervention, and (iii) residential public utility companies in municipalities located in the area directly affected by the emergency. 

Taxable event (What is taxed?): 

Possession of liquid assets (gross assets minus debts) equal to or greater than 200,000 UVT ($10,474,800,000) as of March 1, 2026. 

Rate (How much does it cost?): 

The general rate is 0.5%. However, there is a differential rate of 1.6% for two specific sectors: 

1. Financial Sector: Financial institutions, insurance companies, stockbrokers, etc.
2. Extractive Sector: Companies involved in coal and crude oil extraction. 

Taxable Base (On what value is it calculated?): 

Regarding liquid assets, the following assets owned as of March 1, 2026, may be excluded from the tax base: 

• Equity interests: The value of shares, quotas, or equity interests in domestic companies, whether held directly or through investment vehicles (funds, autonomous assets).
• Environmental Assets: The value of fixed real estate assets acquired or used for environmental control and improvement by public water and sewer companies.
• Technical Reserves: The value of the technical reserves of Fogafín and Fogacoop.
• Social Contributions: Taxpayers in the solidarity sector may exclude the equity value of social contributions made by their associates. 

It is important to understand that the gross value of the asset is not excluded. The net asset value is excluded, which is calculated as follows: (Asset value) x (% that liquid assets represent of gross assets). 

Declaration and Payment (How and when?):

The DIAN will provide a form, and the declaration and payment will be: 

• Declaración y pago primera cuota (50%): 1 de abril de 2026.
• Segunda cuota (50%): 4 de mayo de 2026.

Recommendations 

Beware of schisms 

If a spin-off takes place between February 24 and March 1, 2026, the liquid assets of the spun-off and beneficiary companies must be added together. If the sum exceeds 200,000 UVT, the beneficiary company must pay the tax as if the spin-off had not occurred.

Risk of punishable inaccuracy 

To avoid penalties and possible criminal prosecution, we recommend exercising caution with accounting or tax adjustments that are not supported by actual evidence. The regulation considers the following to be punishable inaccuracies: 

• Omitting or underestimating assets.
• Including non-existent liabilities or unauthorized provisions.
• Making adjustments that artificially decrease net worth. 

Preventive estate planning 

We recommend evaluating whether there are assets that can be reclassified, disposed of, or restructured before March 1, always with real economic justification and without engaging in evasive practices.

Some examples: payment of outstanding liabilities, regularization of accounts payable to partners, decree of accumulated profits, restructuring of unproductive assets. It should be noted that any transaction must have a valid economic basis and be properly documented. 

Our team is at your disposal to help you model the specific impact on your company, validate the correct application of exclusions, and define the strategy to follow.