This post covers in detail the 2025 corporate tax regime in Colombia, including the core tax rate for companies, the assessment basis, applicable flat and surtax rates, and how they impact sector-specific businesses. The information here draws on officially released guidelines and is presented with international business operators in mind.
Corporate Income Tax Overview (2025)
Colombia applies a flat corporate income tax rate to resident companies, assessed on corporate profits. For the 2025 fiscal year, there are no tax brackets or progressive tiering—most companies face a standardized tax rate unless they meet special conditions for surtaxes.
| Assessment Basis | Tax Type | Flat Rate (COP, %) |
|---|---|---|
| Corporate profits | Flat | 35% |
The absence of progressive brackets ensures that all qualifying corporate profits are subject to this 35% rate, regardless of size or sector, except where surtaxes apply. The corporate tax is assessed in Colombian Pesos (COP).
Surtax Regimes for Specific Sectors
Beyond the flat rate, certain sectors are subject to additional surtaxes in 2025. These targeted taxes primarily apply to financial institutions, energy providers, and extractive industries, reflecting Colombia’s approach to sector-specific revenue generation.
| Sector / Condition | Surtax Rate (%) | Threshold (COP / USD) | Applicable Years |
|---|---|---|---|
| Financial institutions, insurance, reinsurance, stock and commodities brokers, infrastructure suppliers to markets |
5% | ≥ 120,000 tax units (approx. $1,390,000 USD*) | Through 2027 |
| Crude oil and coal extraction & production, threshold met, current year avg. market prices ≥ 65% of avg. over past 120 months |
5%-10% (15% for oil extraction specifically) |
≥ approx. $588,362 USD* | Ongoing |
| Hydro-electric power companies | 3% | ≥ 30,000 tax units (approx. $345,188 USD*) | 2023-2026 |
*USD conversions are rough approximations based on the FY 2025 reference rates noted.
Highlights and Practical Examples
- Financial institutions with taxable income of COP equivalent to at least 120,000 tax units (around $1.39M USD) incur a 5% surtax, effective through 2027.
- Crude oil and coal producers face between a 5% and 10% surtax when taxable income surpasses approximately $588,362 USD—if current market prices meet specific averaging criteria. Oil extraction businesses face up to a 15% surtax under these regulations.
- Hydro-electric power companies must pay an extra 3% surtax if their income exceeds 30,000 tax units (around $345,188 USD), applying for years 2023–2026.
No minimum or maximum holding periods are required to determine corporate tax liability; the tax is purely profit-based.
Pro Tips for Navigating Colombia’s Corporate Tax in 2025
- Monitor your annual taxable income against tax unit thresholds. Surpassing key limits can trigger significant surtaxes, especially for financial and energy-related companies.
- Energy sector firms should closely track average commodity prices. Eligibility for industry surtaxes is directly linked to multi-year pricing benchmarks.
- Factor in surtax applicability during financial planning, especially if your business activities expand across sectors with variable surcharge regimes.
- Consult the official Colombian Ministry of Finance (https://www.minhacienda.gov.co) for updates on tax units (UVT), which form the base for most thresholds.
Reference: Official Colombian Tax Authority
For full legal definitions and updated figures, consult the official Colombian Ministry of Finance: https://www.minhacienda.gov.co
To summarize, Colombia applies a 35% flat corporate tax rate in 2025, with surcharges for financial, extraction, and hydroelectric sectors depending on income and sector-specific criteria. It is critical for companies operating in these industries to stay up to date with changing tax unit thresholds and price-based triggers. Transparent rules and fixed assessment criteria aid in compliance, but sector-focused surcharges require careful monitoring as part of routine corporate tax planning.