Colombia's Finance Ministry has published a decree for comments that eliminates the 1.5% withholding at source on purchases made with debit and credit cards. However, this change does not remove withholdings already set by law. The document clarifies that such payments are not subject to withholding for income tax.
Following anticipation announced at the end of last year, Colombia's Finance Ministry has finally published the decree for comments that eliminates the 1.5% withholding at source on purchases made with debit and credit cards. This measure aims to simplify electronic payments, which constitute a significant taxable income.
The document, issued by the economic portfolio, specifies that payments or credits in account related to these purchases are not subject to withholding at source for income tax purposes. However, other special withholdings remain in place. As stated in the decree: “When the payments or credits in account referred to in this article correspond to purchases of goods or services for which special provisions establish withholding rates at source applicable above 0% regardless of the payment method, the rates provided in each case by such provisions shall apply, and the withholding agents making the payment or credit in account must withhold accordingly”.
Additionally, the decree details that when calculating the withholding base, values of other taxes, fees, and contributions incorporated in the payments will be deducted, provided the beneficiaries are responsible or collectors. This publication, dated January 27, 2026, invites public comments and could positively impact e-commerce and card usage in daily transactions, promoting greater financial inclusion without altering existing tax obligations.
