Colombia court strikes down 2025 emergency tax measures

• On 15 April 2026, Colombia's Constitutional Court announced that Decree 1474 of 29 December 2025, which introduced temporary tax measures under the 2025 economic emergency, was declared unconstitutional following the invalidation of the emergency powers in Decree 1390.
• The court ruled that direct taxes modified or accrued during the decree's effective period (30 December 2025 to 28 January 2026) will not be subject to filing, assessment or collection, and any advance payments will be refundable.
• Indirect taxes paid during this period may also be refundable to taxpayers who can prove they bore the tax burden, with the tax authority expected to establish refund procedures.
• Tax benefits obtained under Decree 1474 while it was in force remain unaffected, but taxpayers should watch for the court's full judgment to be released and prepare for potential refunds and compliance adjustments.

Executive summary

On 15 April 2026, the Constitutional Court issued Press Release No. 15, announcing that Decree 1474 of 29 December 2025 has been declared unconstitutional, as it was issued under the state of emergency declared by Decree 1390. This development followed the Constitutional Court's 9 April 2026 announcement that it had declared unconstitutional Decree 1390 of 2025 (Judgment C-075 of 2026), removing the legal basis for the emergency powers under which Decree 1474 had been issued.

Decree 1474 of 29 December 2025 introduced a set of temporary tax measures to address the fiscal needs arising from a state of economic and social emergency that the Colombia Government declared on 22 December 2025 in Decree 1390 of 2025.

(For background, see EY Global Tax Alert, Colombian Government establishes temporary taxes amid State of Economic Emergency, dated 7 January 2026.)

As of the date of this Tax Alert, only the press release has been published, and the full judgment (Sentencia C-079 of 2026) is still pending. The final wording and scope of the decision will therefore need to be confirmed once the judgment is released in full.

Press release

Based on the information included in the press release, the Constitutional Court modulated the effects of its ruling as follows:

• Direct taxes modified or accrued while Decree 1474 was in force would not be subject to filing, assessment or collection by the Colombian tax authority (DIAN). Any amounts paid in advance would be refundable.
• Indirect taxes paid during the period in which Decree 1474 produced effects would be refundable to taxpayers who can demonstrate having effectively borne the tax burden. DIAN would apply existing legal mechanisms or define a specific procedure for this purpose.
• Consolidated legal situations, including tax benefits effectively obtained by taxpayers who met the applicable conditions while Decree 1474 was in force, would remain unaffected.

According to the press release, Decree 1474 produced effects between 30 December 2025 and 28 January 2026.

Key dates