On February 14, 2025, Decree 0175 of 2025 entered into force, reinstating the application of the Stamp Tax in Colombia as of February 22, 2025. This rule introduces changes in its application, setting new conditions for the taxpayers, the taxable base and the assessment procedure.
Given its impact on the formalization of contracts and corporate documents, it is necessary to review its implications to ensure compliance with the current provisions and avoid possible tax contingencies.
What is the Stamp Tax and which documents does it apply to?
The Stamp Tax is an indirect tax levied on certain acts, contracts and documents, giving them formal validity and legal effects. Its regulation is found in articles 514 to 554 of the Tax Statute, which set out the transactions subject to this levy.
This tax accrues when documents:
- Are signed or accepted in Colombia.
- Are granted outside the country but produce legal effects in Colombia.
- Involve the creation, modification, termination, extension or assignment of obligations.
Some of the documents and contracts on which this tax falls include:
- Public deeds for the sale of real estate and mortgages.
- Commercial and civil contracts, such as leases and supply contracts.
- Notarial documents requiring the intervention of a notary.
- Negotiable instruments, where their negotiation involves formal obligations.
The rule maintains the criterion that the stamp tax applies to documents and acts that, by their nature, need to be formalized with legal and tax effects.
Changes introduced by Decree 0175 of 2025
Decree 0175 of 2025 ratifies the validity of the Stamp Tax and establishes key adjustments in its application, including:
Rate and taxable base
- The general tax rate is set at 1% of the value of the act or document.
- The taxable base will be the total value of the obligation contained in the document, provided it exceeds 6,000 UVT (COP 298,794,000 for 2025).
Taxpayers
The following will be responsible for paying the tax:
- Public entities.
- Legal entities or similar.
- Individual merchants, with gross income or gross equity exceeding 30,000 UVT (COP 1,493,970,000 for 2025).
Filing and payment
- The tax must be filed and paid through the monthly withholding-at-source returns.
- It will be the responsibility of the withholding agent to carry out the withholding and filing of the tax within the deadlines established by the DIAN.
Applicable exemptions
The rule maintains certain exemptions to avoid unnecessary tax burdens on strategic documents. Among them:
- Employment contracts.
- Documents related to social-interest housing.
- Assignment and endorsement of negotiable instruments, shares and bonds.
- International transport and trade contracts.
- Documents associated with exports of goods and services.
Recommendations
The reactivation of the Stamp Tax with a 1% rate introduces a new element to consider in structuring contracts and corporate documents. To avoid tax contingencies, it is advisable that companies:
- Review their contracts and documents: Determine whether the company’s operations are subject to this tax and calculate the impact in terms of costs.
- Ensure correct withholding and filing: Obligated parties must verify that the timely filing and payment process is met to avoid penalties.
- Assess the applicability of exemptions: A detailed analysis of documents and contracts is recommended to identify possible tax benefits.
- Carry out internal compliance audits: Implement control processes to ensure the correct application of the tax in high-value contracts.
Decree 0175 of 2025 marks an adjustment in the structure of the Stamp Tax, reinforcing its role in the formalization of economic transactions and in tax collection. Given its impact on companies’ document and contract management, it is essential to adopt a preventive and strategic approach to its correct application.
For more information on how this change may affect your company, our team is available to provide the assistance you need.