Constitutional Court Suspended the Collection of the 2026 equity Tax for Non‑profit entities and Entities in Liquidation
The provisional measure seeks to prevent serious and irreversible impacts on fundamental rights while the constitutionality of the tax enacted during the state of emergency is under review.
Within the framework of the automatic constitutional review, the Colombian Constitutional Court ordered the provisional and partial suspension of the equity tax created by Legislative Decree 173 of 2026, issued during the state of emergency declared by the National Government through Legislative Decree 150 of 2026.
The decision will remain in force while the Plenary Chamber reaches a final ruling on the validity of the tax and is grounded on the risk of intense impacts on fundamental rights and on the possible impossibility of fully reversing its effects.
Main Grounds of the Decision
Impact on fundamental rights:
The Court found preliminary evidence of significant impacts on the rights to education, work, and, in some cases, the minimum subsistence level, particularly in the case of non‑profit organizations (NPOs) subject to the Special Tax Regime, whose resources are allocated to activities of general interest.
Severity of the economic impact:
For NPOs—especially higher education institutions—the payment of the tax was deemed particularly burdensome, as these entities lack freely disposable profits or general‑purpose reserves that would allow them to absorb the tax burden without affecting their operations.
Situation of legal entities under liquidation:
In these cases, net worth does not reflect available wealth, but rather assets earmarked for the orderly payment of liabilities. The immediate enforceability of the tax reduces the liquidation estate and may affect the rights of creditors.
Irreversibility of the harm:
The Court warned that a subsequent decision declaring the tax unconstitutional would not allow for the full restitution of the resources collected, either for NPOs or for entities undergoing liquidation.
Fiscal balancing:
According to preliminary information, the bulk of the expected revenue from the tax derives from for‑profit entities. As a result, the partial suspension does not compromise the financing of the emergency, particularly given that approximately COP 2.4 trillion was already collected from the first installment.
The Constitutional Court ordered the provisional suspension of the collection of the second installment of the net worth tax, scheduled for May 4, 2026, exclusively with respect to non‑profit entities subject to the Special Tax Regime and legal entities under liquidation as of April 29, 2026.
This measure will remain in force until the Plenary Chamber issues a final decision on the constitutionality of the tax created by Legislative Decree 173 of 2026.
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