The Government has prepared the decree that applies temporary taxes to hydrocarbons, coal and online betting.
This Friday, the Colombian government published the decree that formalizes the three new taxes that will be used as a source of financing for the measures ordered amid the state of internal turmoil due to the security and humanitarian crisis in Catatumbo.
The three new measures are: VAT on games of chance and online betting (currently 0% in this section and will now be taxed at 19%); 1% tax on oil and coal sales (whether international or national) and, finally, a 1% stamp duty on notarial procedures (exceeding 6,000 UVT, just over $298 million).
The administration of President Gustavo Petro will collect these three taxes for the entire fiscal year, that is, the remainder of 2025.
The government's plan had already been revealed by the Ministry of Finance during an extraordinary session in Congress a few weeks ago.
This is how the taxes of internal turmoil will work
- Online gambling: Currently, gambling and betting carried out online do not pay VAT in Colombia and the Government's intention is for these transactions to be taxed at 19%, like many other products and services in the country.
This was one of the key provisions of the financing law that was defeated in Congress and, incidentally, was one of the points that generated the most discussion among congressmen.
The decree establishes that these services will pay VAT, even if they are operated from abroad, which was one of the concerns of businessmen in the sector, because if the playing field is not leveled, one part of the sector ends up being privileged.
- Oil exports: a 1% tax is imposed on “the final export to the rest of the world and the first sale within or from the national territory of hydrocarbons and coal,” the decree reads.
The tax will be levied on the following products, specifically: “Coal; briquettes, ovoids and similar solid fuels obtained from coal, crude petroleum oils or bituminous minerals”. All these goods will be subject to a 1% rate.
- Stamp tax: currently, this tax only applies to notarial procedures on real estate whose value is above 20,000 UVT (almost $996 million by 2025).
The idea is that this tax will apply to notarial procedures and services, especially those whose value is above $298 million, but that they do not refer to real estate because a different rate applies to these (approved since the 2022 tax reform).
