The Council of State ordered the provisional suspension of Articles 2 to 8 of Decree 572 of 2025, a regulation that increased the standard withholding tax rates and special self-withholding rates applicable to companies. In practice, this decision means that the tax system temporarily reverts to the previous framework, while the Council of State issues a final decision on the legality of the decree.
Accordingly, as of May 8, 2026, withholding agents must apply the bases and rates for withholding and self-withholding in accordance with the provisions set forth in Decree 1625 of 2016, as in force prior to their amendment by Decree 572 of 2025.
Below is a comparative table outlining the main differences between the suspended provisions and those that are currently applicable again:
| Article | Concept | Suspended — Decree 572/2025 | Applicable — Decree 1625/2016 |
| Art. 2 Services — minimum base exempt from withholding | Minimum individual amount per service payment below which withholding tax is not required | 2 TUV ($104,748 in 2026) | 4 TUV ( $209,496 in 2026) |
| Art. 3 Unprocessed agricultural goods / federation-type parchment coffee | Maximum threshold below which withholding is not mandatory (at the withholding agent’s discretion). If exceeded, rate of 1.5% | 70 TUV ($3,666,180 in 2026) Rate if exceeded: 1.5% | 92 TUV ($4,818,408 in 2026) Rate if exceeded: 1.5% |
| Art. 4 Purchases of parchment or cherry coffee | Maximum threshold (aggregated per date, seller, and buyer) below which income tax withholding is not required. If exceeded, rate of 0.5% | 70 TUV ($3,666,180in 2026) Rate if exceeded: 0.5% | 160 TUV ($8,379,840 in 2026) Rate if exceeded: 0.5% |
| Art. 5 Gold purchases — international trading companies | Income tax withholding rate applicable on the total amount paid or credited for gold purchases by international trading companies. No minimum threshold — applies from the first peso | 2.5% On total amount paid | 1% On total amount paid |
| Art. 6 Real estate — preferential bracket and minimum exempt amount | Residential housing bracket at 1% rate: up to which amount the preferential rate applies; excess taxed at 2.5%. Non-residential real estate: 2.5% with no preferential bracket. Minimum exempt (lit. i): transactions below this amount are not subject to withholding | 1% bracket: 10,000 TUV ($523,740,000 in 2026) Excess: 2.5% Min. exempt: 10 TUV ($523,740 in 2026) | 1% bracket: 20,000 TUV ($1,047,480,000 in 2026) Excess: 2.5% Min. exempt: 27 TUV ($1,414,098 in 2026) |
| Art. 7 Art. 1.2.4.10.8 Ecclesiastical emoluments | Minimum individual payment for ecclesiastical emoluments below which withholding tax is not required | 10 TUV ($523,740 in 2026) | 27 TUV ($1,414,098 in 2026) |
Additionally, Article 8 of Decree 572 of 2025 amended the self-withholding tax rates for income tax purposes, applicable according to the taxpayer’s economic activity, as identified by their CIIU code.
Below is a list of the economic activities for which the self-withholding rates were modified, indicating both the suspended rate and the currently applicable rate, click here: LEGAL UPDATE – PROVISIONAL SUSPENSION OF DECREE 572 OF 2025Provisional Suspension of Decree 572 of 2025 – Withholding Tax and Special Self-Withholding.pdf