Through Legislative Decree 1390 of 2025, the national Government declared a State of Economic and Social Emergency throughout the country, with the aim of addressing a significant fiscal deficit projected for fiscal year 2026 and ensuring the financing of the General State Budget, after several fiscal initiatives failed to pass Congress.

In furtherance of this declaration, the Government issued Legislative Decree 1474 of 2025, which concentrated most of the extraordinary tax measures, with direct impacts on companies, financial institutions, and individuals.

Tax Scope of Decree 1474 of 2025

From a business perspective, Decree 1474 of 2025 temporarily reshaped the tax system by introducing measures that affected both corporate tax burdens and the net worth taxation of individuals.

Among the main changes were:

• A temporary increase in income tax for the financial sector, establishing a 15% surcharge on the general tax rate, raising the sector’s effective tax burden from 35% to 50%.
• Significant impacts on the oil and coal industries, through adjustments to sector-specific taxation and extraordinary contributions.
• A modification of the taxable event for the net worth tax (Article 294-3 of the Tax Code), reducing the threshold for tax liability from 72,000 UVT (COP 3,770,928,000 in 2026) to 40,000 UVT (COP 2,094,960,000 in 2026), substantially expanding the base of taxable high-net-worth individuals.

From a quantitative standpoint, these measures implied material increases in effective tax rates and in the number of taxpayers subject to net worth taxation, with direct effects on cash flow, tax planning, and investment decisions.

Settlement Measures and Positive Effects on Revenue Collection

Notwithstanding the above, the decree also introduced favorable measures in sanctioning and settlement matters, allowing, among others, taxpayers with outstanding tax, customs, and foreign exchange obligations with the DIAN as of December 31, 2025, to become compliant by March 31, 2026, by paying:

• 100% of the outstanding principal.
• Late payment interest at a rate of 4.5%.
• 15% of the applicable penalty, provided it was not lower than the minimum statutory penalty.

These measures encouraged significant revenue collection through the normalization of delinquent tax accounts, generating immediate liquidity for the State and fiscal relief for taxpayers.

What Did the Constitutional Court Decide?

On January 29, 2026, the Constitutional Court resolved to provisionally suspend Legislative Decree 1390 of 2025, which entails the suspension of the decrees issued under its authority, including Decree 1474 of 2025. As a result:

• New extraordinary tax burdens are frozen.
• Taxes created under the emergency regime that have not yet been consolidated may not be enforced.
• Legal uncertainty remains until a final ruling on constitutionality is issued.

Impact on Companies and Taxpayers

From a corporate standpoint, the suspension represents immediate relief in terms of tax planning, particularly for the financial, extractive, and large taxpayer sectors.

However, the decision does not eliminate fiscal risk, as the Court may uphold the decree in its final judgment, and the Government could pursue ordinary tax reforms with similar content.

Future Scenarios and Effects of a Potential Unconstitutionality Ruling

If the Constitutional Court declares the decree unconstitutional, a critical aspect will be the non-retroactive effect of the decision. In that scenario, taxes collected during the validity of the decree should remain in force, under the principles of legal certainty and fiscal stability. Additionally, taxpayers who benefited from settlement measures and tax relief provisions should retain those benefits.

This approach avoids systemic risks related to additional payments and/or mass refunds and tax litigation that could otherwise affect the State’s financial stability.

Conclusion for the Business Sector

The suspension of the decree marks a critical pause in extraordinary fiscal policy, but it does not eliminate the structural risk of tax adjustments in 2026.

For sectors such as financial services, oil, mining, large taxpayers, and high-net-worth individuals, fiscal volatility will continue to be a strategic factor in investment decision-making and corporate planning.

Purpose of the Decree

Decree 972 of 2025 (hereinafter, the “Decree”) aims to promote the self-generation of solar energy in households belonging to strata 1, 2, and 3, in order to advance sustainability and reduce greenhouse gas emissions in Colombia. This regulatory framework is directed at users of the National Interconnected System (SIN) and the Non-Interconnected Zones (ZNI), ensuring that these households can access the benefits of the program.

How the Objective Will Be Achieved

• Leadership of the Ministry of Mines and Energy: It will coordinate, lead, regulate, define guidelines, issue, and manage the implementation of the program.
• Regulatory adjustments: Specific provisions are incorporated into Decree 1073 of 2015 to regulate solar self-generation.
• Creation of the Program: The Colombia Solar Program is established as a public policy to manage and promote solar projects nationwide.
• Technical regulation by CREG: Within three months, it must harmonize regulations and establish technical aspects such as measurement and billing for the program’s proper operation.
• Program supervision: The Superintendence of Public Services will conduct inspection, monitoring, and control of the program.
• Gradual replacement of subsidies: Self-generation is proposed as an alternative to the traditional electricity subsidy scheme.

Scope of the Colombia Solar Program

• Promote self-supply: Households in strata 1, 2, and 3 will be encouraged to generate their own electricity through solar panels.
• Guarantee basic subsistence consumption: Ensure that the minimum energy demand is met through solar sources in the SIN and ZNI.
• Reduce costs for vulnerable households: Generate direct savings in electricity expenses for low-income families.
• Optimize public resources: Improve the efficiency of the Solidarity Fund for Subsidies and Income Redistribution (FSSRI), reducing pressure on electricity subsidies.

Expected Impact on Industry and the Country

• Environmental: Contribute to reducing greenhouse gas emissions and improving the sustainability of the energy system.
• Energy: Enable the consolidation of a cleaner and more efficient energy matrix, less dependent on fossil fuels.
• Economic: Provide savings for low-income users and open new business opportunities for investors.
• Industrial: Promote the development of solar projects and strengthen the renewable energy industry in Colombia.

Financing Sources

• Public resources: Financing will be available from the General Budget of the Nation, subject to availability.
• Specialized funds: Funds such as FENOGE and FONDES will support the implementation of solar projects.
• International and private support: Participation is expected from multilateral banks, international cooperation agencies, and private investors.

Conclusion

The Decree establishes a clear framework for Colombia’s energy transition, ensuring access to basic electricity for vulnerable households, reducing dependency on subsidies, and promoting the use of cleaner, fairer, more sustainable, and longer-lasting energy sources. The Decree shall take effect on September 16, 2025, the day following its publication in the Official Gazette.

In Judgment C-517 of 2024, the Constitutional Court declared unenforceable the provisions that conditioned paternity protection (known as fuero de paternidad) solely on cases where the mother lacked formal employment. Through this decision, the Court extended paternal protection regardless of the pregnant mother’s employment status, aiming to also safeguard the rights of men who are about to become fathers.

Until now, Article 239 of the Colombian Substantive Labor Code, as amended by Law 2141 of 2021, limited this protection by requiring that the mother be formally unemployed and economically dependent on the father. This excluded many fathers committed to child-rearing simply because their partner had an active employment relationship. The Court found such distinction to be discriminatory and contrary to the constitutional principle of shared parental responsibility.

“The purpose of paternity protection is to ensure shared caregiving, not to depend on the contractual status of the mother,” the high court emphasized.

Accordingly, this decision eliminates the restrictions that conditioned paternity protection on the absence of formal employment by the pregnant mother. The ruling expands the scope of this labor protection to all workers who are about to become fathers, regardless of their partner’s employment situation. From now on, paternity protection applies fully from the moment the employer becomes aware of the pregnancy or the birth, throughout the entire pregnancy, the 18 weeks following childbirth, and the breastfeeding period—regardless of the father’s type of employment contract.

This protection prevents termination of employment or deterioration of working conditions without prior authorization from the Ministry of Labor, as long as the employee demonstrates a genuine commitment to the financial support and care of the child. Only cases where the father fails to meet these responsibilities—such as through child support evasion—are excluded.

With this decision, a solid precedent has been established: reinforced job stability is also a right of working fathers, provided that the pregnant partner is economically dependent on them and the employer is aware of the pregnancy.

From our firm’s perspective, this ruling is particularly significant as it eliminates normative barriers that previously excluded many committed fathers from parental protections, strengthens the principle of equality in the workplace, and redefines the scope of paternity protection as a more equitable guarantee. It also compels employers to apply greater scrutiny in termination processes and reinforces the need for robust compliance policies. Ultimately, this decision promotes a modern and shared approach to family caregiving—one that aligns with dignified work standards and constitutional principles of family protection.

Do not hesitate to contact Brick Abogados if you have any questions or if you would like further details on the topic discussed above.

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This document is for informational purposes only and does not constitute legal advice, nor does it engage the responsibility or professional opinion of Brick Abogados.