COLOMBIA Trends and Developments Contributed by: Rodrigo Castillo Cottin, Ana María López and Alejandra Becerra, Rimon, P.C.
Conclusions The first emergency (Decree 1390 of 2025) has been declared unconstitutional, definitively annulling all of its implementing fiscal decrees; the second emergen - cy (Decree 150 of 2026) remains in force, validated by the Constitutional Court on 24 June 2026, but limited to emergency relief for the 181 at-risk municipalities. Compliant taxpayers must therefore navigate a frag - mented fiscal regime: ordinary laws on one side, and emergency legislation from the second declaration – still in force – on the other. The most fundamental principle of the rule of law in tax matters (ie, that taxes must originate in the legis - lature) has been subordinated to the urgency of the moment. The underlying challenge remains: how to build tax systems that are adequate to fiscal needs and anchored in democratic legitimacy.
Whether the new government will succeed in insti - tutionalising fiscal policy or whether it will perpetu - ate the cycle of exceptionalism, remains to be seen. When the new government takes office on 7 August 2026, with ambitious fiscal targets but without a leg - islative majority, the fulfilment of its commitments will therefore depend on its ability to secure congressional support.
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