DIAN Clarifies Tax Withholding Obligations Following Suspension of Decree 572
The Colombian Tax and Customs Authority (DIAN) has issued a critical clarification for taxpayers and withholding agents following a judicial ruling by the Council of State. On May 7, 2026, the Council of State issued an interlocutory order provisionally suspending articles 2 through 8 of Decree 572 of 2025. While this suspension alters the rules, the DIAN is emphatic: the obligation to perform tax withholdings (retenciones en la fuente) and self-withholdings (autorretenciones) remains fully in effect.
The core of the issue isn’t the existence of the tax obligation, but rather the specific rates and bases used to calculate them. Because the new rules introduced by Decree 572 are currently suspended, the legal framework has effectively reverted to the previous regulations.
Reverting to Decree 1625 of 2016
Starting May 8, 2026, withholding agents must stop applying the modified rates from Decree 572 and return to the provisions established in Decree 1625 of 2016. This reversal remains active until the Council of State lifts the precautionary measure or issues a final ruling on the legality of the 2025 decree.
For businesses and accountants, this means a sudden shift in compliance requirements. The DIAN has stressed that the provisional suspension doesn’t eliminate the tax regime; it simply restores the rules that were in place before Decree 572 substituted them.
Key Changes in Withholding Bases and Rates
The shift back to the previous regime affects several sectors, specifically regarding the minimum thresholds (measured in UVT) and the applicable percentages. The following changes are now in effect:
- Professional Services: The threshold for withholding has returned to 4 UVT. Under the now-suspended Decree 572, this limit had been lowered to 2 UVT.
- Agricultural and Livestock Products: For goods without industrial processing, withholding isn’t mandatory if the value doesn’t exceed 92 UVT. If it does, a rate of 1.5% applies.
- Coffee (Pergamino or Cereza): The non-withholding threshold is restored to 160 UVT. Payments exceeding this amount are subject to a 0.5% rate.
- Gold Purchases: For international marketing companies, the withholding rate returns to 1% of the total payment. This is a significant drop from the 2.5% rate previously set by Decree 572.
- Real Estate:
- Residential Housing: A 1% rate applies to the first 20,000 UVT, with a 2.5% rate for any excess.
- Non-Residential: A flat 2.5% withholding rate applies.
- Ecclesiastical Emoluments: The minimum base not subject to withholding returns to 27 UVT for payments made to taxpayers, regardless of whether they are required to file income tax returns.
Compliance Summary Table
| Category | Previous Rule (Now Active) | Suspended Rule (Decree 572) |
|---|---|---|
| Service Threshold | < 4 UVT (No withholding) | < 2 UVT (No withholding) |
| Gold Rate | 1% | 2.5% |
| Coffee Threshold | 160 UVT | Modified/Lowered |
| Residential Real Estate | 1% (up to 20k UVT) / 2.5% (excess) | Modified |
Next Steps for Taxpayers
The DIAN has made a comparative table of the suspended rates versus the currently applicable rates available for download via their official communications. The entity urges all withholding agents to review these dispositions carefully to avoid errors in tax filing and payment.
Given the volatility of these regulations, companies should update their accounting software and payroll systems immediately to reflect the May 8, 2026, changes. Ensuring the correct application of these rates is essential to avoid potential penalties for under-withholding during this transitional legal period.
Key Takeaways
- Obligation persists: The suspension of Decree 572 does NOT mean you stop withholding taxes.
- Effective Date: The return to previous rules began on May 8, 2026.
- Legal Basis: Agents must now follow Decree 1625 of 2016.
- Sector Impacts: Major changes affect gold, real estate, coffee, and general service providers.