Colombia proposes equalizing withholding tax on electronic payments

The Ministry of Finance (MinHacienda), in coordination with the DIAN, has released a Draft Decree for public comments proposing to equalize the withholding tax (WHT) rates applied to electronic payments in Colombia.

This public consultation phase allows for citizen and industry feedback before the regulation is finalized.

Currently, payments made via credit and debit cards are subject to a 1.5% withholding tax, while other electronic instruments such as QR-based payments and transfers between low-value deposit accounts are not.

The proposal seeks to correct this disparity and strengthen tax compliance in an increasingly digital economy.

Objective of the Draft Decree

The main goal is to ensure equal tax treatment for all digital payment instruments that provide traceability similar to card transactions.

The reform aims to:

• Promote horizontal equity between non-cash payment methods

• Reduce arbitrage between financial products

• Improve real-time monitoring and tax governance

Key proposed changes for withholding tax on electronic payments

1) A uniform 1.5% withholding rate

Sales of goods and services paid through:

• Credit and debit cards

• Electronic payment instruments linked to deposit accounts

This removes discrepancies that incentivized specific channels based on tax treatment rather than operational efficiency.

2) New withholding agents

Priority responsibility will lie with:

• Acquirers processing the transactions

• Aggregators, when involved exempting the acquirer in such cases

Definitions follow the framework of Decree 2555 of 2010.

3) Important exception and VAT precedence

The 1.5% withholding tax does not apply to:

• Payments to individuals not responsible for VAT

Additionally, when VAT withholding applies, acquirers and aggregators will have precedence as withholding agents, removing the burden from card-issuing entities.

Start date / Implementation timeline

Once published, the decree:

• Takes effect the day after publication

• Substantive withholding changes apply from the first calendar day of the second month following publication

This grants a short but defined adaptation period for financial and commercial organizations.

Source: Draft Decree — Ministry of Finance and Public Credit (Colombia)

Brinta’s role in this new compliance environment

The new withholding requirements demand automated validation, real-time oversight, and system-level updates.

Brinta enables compliant withholding processes and complete traceability across digital payments in Colombia, reducing operational risks and audit exposure.

 Talk to the Brinta team to simplify and automate withholding compliance in electronic payments.