The taxes imposed by the Decree are:
1. Value Added Tax (VAT) applying at 19% on online games of chance and luck:
° Taxpayers: Users located on Colombian territory who transfer money or crypto assets to their gaming accounts to participate in betting platforms and online casinos operating within Colombia or from abroad.
° Taxable base: 1.19 times the amount deposited by the user into the gaming account.
2. 1% tax on sales and exports of hydrocarbons and coal:
° Taxpayers: Individuals or legal entities conducting the first sale of hydrocarbons and coal within or from Colombian territory, as well as those carrying out definitive exports of these resources.
° Taxable base: The value of the first transaction involving the sale of hydrocarbons and coal within national territory or in the case of the definitive export.
3. Stamp tax at 1% on documents related to obligations:
° Taxpayers: Natural or legal entities executing public or private instruments with a value exceeding 6,000 UVTs (COP 299 million for 2025), which are granted or accepted in the country, or granted outside the country but executed within the national territory or generate obligations therein, including documents on the generation, existence, amendment or termination of obligations, as well as on any extensions or assignments; with the exception of public deeds on transfers of real estate exceeding 20,000 UVTs (COP 996 million), as well as vessels, or the establishment or cancellation of mortgages thereon.
° Taxable base: Documents subject to stamp tax that exceed 6,000 UVTs.
These taxes will be in effect from February 22 to December 31, 2025. The government estimates that these measures will generate more than one trillion pesos aimed at mitigating violence and supporting affected communities in the Catatumbo region.
Decree 175 is based on Section 38 of Law 137 of 1994, which authorizes the President to impose fiscal or parafiscal contributions during the taxable year or the duration of the disturbances leading to a State of Public Calamity, provided that such taxes are not included in the revenue budget.
Constitutional Court Ruling C-711/01 (Justice Jaime Araujo Rentería) addressed the issue as follows:
"It is also true that the new constitutional text (as was the previous one) suffers from poor drafting regarding the expression 'fiscal and parafiscal contributions,' as the norm should have referred to the broader category of TRIBUTE, which encompasses taxes, fees, and contributions. However, within a systematic analysis incorporating Articles 150, paragraphs 10 and 12; 313-4; and 300-4 of the Constitution, it is imperative to understand that the regulation in question refers to the broader category of tribute, which undoubtedly materialized in its subcategories: tax, fee, and contribution."
4. Unclear Aspects Regarding Presidential Authority:
Expansion of the stamp tax rate and taxable base:The increase may exceed the scope of Section 38 of Law 137 of 1994, which prohibits collecting taxes included in the revenue budget. The "2025 Revenue Budget Composition Detail" lists the National Stamp Tax revenue as an indirect tax (entry 0003).
Use of Internal Commotion regulations to support migrants returning to Venezuela,The Government cites a lack of resources and competencies, raising concerns over the applicability of these regulations for this purpose.
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