Special Self-Withholding for Income Tax Purposes – Application of Minimum Withholding Thresholds –

On September 25, 2026, the Colombian Council of State (Fourth Section), through Judgment No. 30246, annulled the official guidance issued by the Colombian Tax and Customs Authority (Dirección de Impuestos y Aduanas Nacionales – DIAN) in Official Letter No. 5622 of March 15, 2017, and Concept No. 5623 (Internal No. 1526) of October 2, 2023.

DIAN’s position (annulled administrative guidance):

DIAN required taxpayers to apply the special self-withholding on 100% of each payment or credit to account, without regard to any minimum thresholds or amounts.

Council of State’s decision (current case law):

The Council of State reiterated that the minimum thresholds established for income tax withholding are fully applicable to the special self-withholding regime. The Court based its decision on its interpretation of Article 1.2.6.7 of Single Regulatory Decree (Decreto Único Reglamentario – DUR) 1625 of 2016.

The Court clarified that the thresholds established under the regulations in force for calculating income tax withholding apply equally to special self-withholding. It further held that the regulatory provision was not required to expressly reproduce the applicable minimum thresholds for them to be enforceable.

In conclusion:

Special self-withholding applies only to payments or credits to account that exceed the minimum thresholds established for the different categories subject to income tax withholding.

It should also be noted that the current withholding tax thresholds are those established under Decree 572 of 2025. As of the date of this publication, the Decree is subject to a legal challenge; however, the provisional suspension previously ordered with respect to the regulation has been revoked.