On October 8, 2026, District Agreement 1084, known as the “Smart City Agreement”, was signed into law. It amends ICA and property tax, creates a public lighting surcharge and establishes tax incentives and relief measures. Although effective upon publication, most measures apply from January 1, 2027.

What applies now and what applies in 2027?

Already in force (upon publication of the Agreement):

• 60% relief on interest and penalties (payment by December 21, 2026).
• New ICA rates for bimonthly filers, from the November–December 2026 period.
• Investment incentives and new procedural and penalty rules.

From January 1, 2027:

• New ICA rates for annual filers and new filing frequency (bimonthly or annual).
• Fire surcharge with new threshold, property tax changes and public lighting surcharge.
• Repeal of the Outdoor Advertising Tax and the Fund for the Poor, Gambling and Entertainment Tax.

Key changes:

1. Industry and Commerce Tax (ICA)

• Rates: range from 4 to 20 per thousand depending on the activity and ISIC (CIIU) code. For our sectors: IT consulting 7; accounting and management consulting 8; software development, data processing and business support services 10; software publishing 11.
• Financial sector: 20 per thousand in 2027, 19 in 2028 and 18 from 2029 onwards (currently 14). Financial cooperatives 13 and employee funds 10.
• Effective date: annual filers from January 1, 2027; bimonthly filers from the two-month period following approval of the Agreement.
• Filing frequency from 2027: bimonthly if the prior-year ICA liability exceeds 391 UVT (COP 20,478,234); annual otherwise.

2. Fire Department Surcharge

• Applies only to ICA taxpayers with annual net income equal to or above 38,000 UVT (COP 1,990,212,000).

3. Unified Property Tax

• A 16 per thousand rate applies to properties used for financial activities.
• From 2027, the appraisal brackets that determine the rate will be updated annually based on the IVIUR index.

4. Public Lighting Surcharge

• From January 1, 2027, it is assessed together with the property tax, on the same appraised value, at rates from 0 to 1 per thousand depending on use. Commercial, financial and industrial properties: 1 per thousand until 2041.
• Annual cap of 600 UVT for residential properties and 1,200 UVT for all others
• Certain property tax exemptions do not extend to this surcharge.

5. Investment Incentives

• Progressive ICA exemption for 2, 5 or 10 years for new taxpayers investing at least 88,073 UVT in productive fixed assets and creating 30, 50 or 100 formal jobs.
• 60% or 80% credit on the additional ICA arising from new investments, for two years, for taxpayers already registered.
• Special benefits in the Airport District (Fontibón and Engativá), urban renewal and build-to-rent projects.

6. Relief for Outstanding Liabilities

• 60% reduction in interest and penalties by paying the full principal and the remaining 40% in a single payment no later than December 21, 2026.
• It does not cover ICA withholding agent liabilities or assessments under judicial review.

7. Procedure and Penalties

• Penalty for failure to report information: 1%, 0.7% or 0.5% depending on the case, capped at 3,000 UVT, with reductions for timely correction.
• Electronic notice to the e-mail address registered in the RIT; response periods start five days after delivery.
• The most favorable penalty rule applies, including to ongoing proceedings.

8. Other Amendments

• Effective January 1, 2027, the Outdoor Advertising Tax and the Unified Tax on the Fund for the Poor, Gambling and Entertainment are repealed.

Key considerations:

Software companies and shared service providers to parent companies should validate their ISIC (CIIU) code, as it determines whether their rate is 7, 8, 10 or 11 per thousand. The financial sector should forecast the higher ICA for 2027–2029 and the surcharge on its properties.

We recommend updating ICA, ICA withholding and fire surcharge settings before year-end 2026, and reviewing district account statements to take advantage of the relief before December 21.

The content of this bulletin is for informational purposes only, for which reason you may not use it under any circumstances for advisory services regarding the subject matter described therein.

If you need advisory services for any of the issues discussed, our team of professionals will be happy to assist you contacto@jadelrio.com