On 15 April 2021, the Colombian government submitted its proposed Sustainable Solidarity bill in Congress, which contains measures meant to increase revenue. Some of the main measures include:

• Measures to promote employment, including an exemption for employers from the payment of health and pension contributions for certain newly employed persons, including those under the age of 28 for their first job, those that have reached pension age but have not yet received payment from the pension system, those with certain disabilities, and women over the age of 40 that have not been employed in the past 12 months;
• Revisions to the excluded and exempt supplies for VAT purposes, including mainly foodstuffs, medicinal products, agricultural inputs, as well as services including health services, education services, and various others;
• New annual individual income tax brackets/rates are as follows based on the tax value unit (Unidad de Valor Tributario - UVT):
  • for the 2022 tax year:
    • UVT 0 to 800 - 0%
    • UVT 800 to 950 - 10%
    • UVT 950 to 1,500 - 20%
    • UVT 1,500 to 2,700 - 28%
    • UVT 2,700 to 5,000 - 33%
    • UVT 5,000 to 10,500 - 37%
    • UVT 10,500 and above - 41%
  • from the 2023 tax year:
    • UVT 0 to 560 - 0%
    • UVT 560 to 900 - 10%
    • UVT 900 to 1,400 - 20%
    • UVT 1,400 to 2,000 - 28%
    • UVT 2,000 to 4,000 - 33%
    • UVT 4,000 to 10,000 - 37%
    • UVT 10,000 and above - 41%
• Changes in dividend income taxation for individuals, with the following brackets/rates:
  • UVT 0 to 800 - 0%
  • UVT 800 and above - 15%
• New monthly withholding tax brackets/rates for individuals for employment and certain other income:
  • for the 2022 tax year:
    • UVT 0 to 60 - 0%
    • UVT 60 to 70 - 10%
    • UVT 70 to 150 - 20%
    • UVT 150 to 220 - 28%
    • UVT 220 to 420 - 33%
    • UVT 420 to 1,050 - 37%
    • UVT 1,050 and above - 41%
  • from the 2023 tax year:
    • UVT 0 to 39 - 0%
    • UVT 39 to 70 - 10%
    • UVT 70 to 132 - 20%
    • UVT 132 to 167 - 28%
    • UVT 167 to 333 - 33%
    • UVT 333 to 833 - 37%
    • UVT 833 and above - 41%
• New income tax brackets/rates for legal persons from 2022:
  • UVT 0 to 13,770 - 24%
  • UVT 13,770 and above - 30%
• A temporary 3% surcharge for legal persons for 2022 and 2023, which will need to be paid in advance in two installments based on the previous year's taxable income and results in the following total rates:
  • UVT 0 to 13,770 - 27% (including surcharge)
  • UVT 13,770 and above - 33% (including surcharge)
• A temporary solidarity tax on wealth imposed in 2022 and 2023 on individuals, including non-resident individuals, as well as foreign companies and entities that do not declare income tax in Colombia but own property in Colombia, which will generally be levied on net assets held as on 1 January 2022 and 1 January 2023 at the following rates depending on asset value:
  • UVT 0 to 134,000 - 0%
  • UVT 134,000 to 402,000 - 1%
  • UVT 402,000 and above - 2%
• A temporary solidarity tax on high income from 1 July 2021 to 31 December 2021 that is levied at a rate of 10% on natural persons receiving monthly income payments of COP 10 million or more from employment, consideration for services, and certain others; and
• A supplementary standardization (regularization) tax at a rate of 17% for omitted assets or non-existent liabilities as on 1 January 2022, which may be reduced by 50% in relation to foreign assets that are effectively repatriated by 31 December 2022 and reinvested in Colombia.

Note that both temporary solidarity taxes would be deductible from income tax, while the standardization tax would not. For the solidarity tax on high income in particular, it is provided that the tax would be allowed to be taken as a deduction from income tax due in 2021 and subsequent years until deducting 100% of the amount of the temporary solidarity tax paid, with 50% of the amount paid allowed to be deducted for 2021.