Colombia introduces 16% tax on iGaming

In Colombia, on March 12 the government, as part of emergency measures due to flooding, imposed a 16% consumption tax on GGR for local and offshore iGaming operators.

Tax on online betting under emergency measures

Decree on gambling taxation

The government issued Decree 0240 as part of the economic and social state of emergency. The document introduces a consumption tax for gambling conducted through online platforms.

The tax applies to operators that accept online bets both within the country and from abroad.

Tax rate for operators

The tax rate is set at 16%. It is calculated from the amount remaining after deducting winnings paid out from the total volume of bets.

Funding flood response measures

Purpose of the tax measure

The tax was introduced to fund assistance for regions affected by heavy rainfall. The measures are aimed at supporting eight departments where flooding has been reported.

Additional funding for the 2026 budget

Through a separate decree, authorities added 8.6 trillion pesos to the 2026 national budget. The funds will be used for infrastructure recovery and support for key sectors of the economy.

The additional financing will be distributed across agriculture, education, transport, healthcare, and housing sectors.

Tax relief and financial measures

Reduction of penalties for taxpayers

The decree also provides temporary reductions in penalties and interest for taxpayers with outstanding obligations as of December 31, 2025.

Individuals and companies that settle their debts by April 30 will be able to benefit from a reduced interest rate of 4.5% and pay only 15% of the penalties.

Tax normalization for assets

The document introduces a temporary additional tax for owners of undeclared assets or fictitious liabilities. The rate for this levy will be 19%.

Additional measures to support the economy

Credit guarantees

The government also introduced credit support mechanisms. The National Guarantee Fund and the Agricultural Guarantee Fund will be able to provide coverage of up to 90% for new loans.

Support for affected households

The adopted measures include social assistance and support programs for families affected by flooding. Solutions are also предусмотрены for restoring infrastructure and economic activity in the affected regions.