Colombia Stamp Tax on International Service Contracts
Colombia's stamp tax can apply to a service contract with a Colombian counterparty depending on where it is signed, performed, and what obligations it creates. This guide explains when it applies, who withholds it, and what to confirm before signing.
A US or European company signing a service contract with a Colombian counterparty often assumes the contract falls outside Colombia's tax rules simply because it is signed abroad. Colombia's stamp tax does not work that way: what matters is where the service is performed and what obligations the contract creates inside the country.
In Soulbit Academy we already covered how Colombia's withholding tax on payments abroad works from the Colombian side. This guide narrows the angle to Colombia's stamp tax on international service contracts: when it applies, who withholds it, which contracts are exempt, and what a foreign company should confirm before signing, as of September 2026.
What Colombia's stamp tax is and when it applies
Colombia's stamp tax is a national tax on documents and contracts granted or accepted by a qualified party in Colombia, governed by article 519 of the Tax Statute. The taxable event covers three scenarios: the document is granted or accepted in Colombia, it is granted abroad but performed in Colombian territory, or it creates obligations that must be settled inside Colombia.
Two further conditions must both be met. The first is the amount: the contract must exceed 6,000 UVT, close to COP 314,244,000 using the 2026 UVT value. The second is the qualified party test: a public entity, a legal entity, or a natural person with merchant status whose prior-year gross income or gross assets exceed 30,000 UVT must take part in the contract.
A contract between two individuals with no relevant commercial activity, or below the minimum amount, does not trigger the stamp tax, regardless of where it is signed. The rule only applies once both conditions are met at the same time.
When a service contract with a Colombian counterparty is taxed
A service contract with a Colombian counterparty is taxed when it is granted in Colombia, when it is performed in Colombia even if signed abroad, or when it creates payment obligations settled from Colombia. These three scenarios under article 519 of the Tax Statute operate independently of each other.
Does signing the contract outside Colombia avoid the stamp tax?
Signing abroad does not avoid the tax. If the service is delivered to or from Colombia, or if the payment obligation is settled from a Colombian account or company, the contract can still be taxed even when the signatures were placed in another country. Where the contract is signed is only one of three tests the law applies, not the only one.
This distinction changes the practical analysis for a consulting agreement, a software licensing contract, or a professional services agreement with a Colombian counterparty. What matters is not the letterhead or the governing-law clause, but where the service is actually delivered and where the payment obligations are settled.
| Scenario | Example | Triggers the stamp tax? |
|---|---|---|
| Contract granted and performed in Colombia | A Colombian company hires a local consultant operating from the country | Yes, if it exceeds the threshold and a qualified party is involved |
| Contract signed abroad, performed in Colombia | A contract signed in another country with a provider delivering the service from Bogota | Yes, because of the performance inside Colombia |
| Contract signed and performed abroad, no obligations settled in Colombia | Two foreign companies sign and perform the contract with no payments from Colombia | No, it falls outside the taxable event |
| Export contract for goods or domestically produced services | A Colombian company exports a software development service to a client in Europe | No, exempt under a specific rule |
Who withholds the tax, and whether it falls on the foreign company
Colombia's stamp tax withholding agent follows a legal order of precedence set by the Tax Statute. A notary is first in line if the document is raised to a public deed. Where no notary is involved, the state entity that takes part in the act is next.
In every other case, which covers most private service contracts, the withholding agents are the natural or legal persons acting as contracting party, acceptor, or signer of the document.
Must the foreign company practice the stamp tax withholding itself?
In practice, withholding falls on the Colombian party. A foreign company with no domicile or tax presence in Colombia is not subject to the DIAN's formal withholding duties, so the Colombian party acting as contracting party or acceptor takes on that role whenever the contract is taxed.
This makes the withholding obligation one that a Colombian company cannot contractually shift to its foreign counterparty, even if the commercial agreement splits the economic cost between both sides. Before the DIAN, the party the law designates remains responsible, following the same residence-based logic covered in Colombia's withholding tax on payments abroad.
Which contracts are exempt from the stamp tax
Contracts for the export of goods or of domestically produced services are exempt from Colombia's stamp tax, provided the operation qualifies as an export under Colombia's exchange and tax rules. This exemption matters most when the Colombian counterparty is the one exporting a service to the foreign client, a scenario also covered when we explained what Colombian dollar invoices mean for a foreign buyer.
Contracts below the 6,000 UVT threshold are also excluded, along with contracts in which neither party meets the qualified-party test, meaning no public entity, legal entity, or merchant above 30,000 UVT in income or assets is involved. A double taxation treaty, where one applies to the counterparty's country, can further shape the overall tax burden of the operation, though it governs a different tax and does not replace the stamp tax analysis. The mechanics are covered in the guide on Colombia's double taxation treaty.
The rate: why it cannot be assumed for 2026
The general stamp tax rate has changed twice in just over a year, which is why it must be checked against the exact date of each contract. Since 2010, Law 1111 of 2006 reduced the general rate to 0% for most documents covered by article 519 of the Tax Statute.
Decree 175 of February 14, 2025, issued under the internal commotion declared for the Catatumbo region, temporarily reactivated the rate to 1% on documents exceeding 6,000 UVT. That rate applied from the fifth business day after its publication through December 31, 2025, under article 10 of the decree itself, and the government did not extend it. With that, the general rate returned to 0% on January 1, 2026.
| Period | Rate | Legal basis |
|---|---|---|
| 2010 through February 2025 | 0%, reduced general rate | Article 519, Tax Statute |
| February through December 2025, under Catatumbo internal commotion | 1%, on documents exceeding 6,000 UVT | Decree 175 of 2025, articles 8 and 10 |
| Since January 1, 2026 | 0%, general rate, Decree 175 not extended | Article 519, Tax Statute |
Colombia has issued several additional economic emergency decrees since December 2025, some carrying tax measures that the Constitutional Court has reviewed. None of the decrees we verified for this guide reactivates the stamp tax rate again, but a foreign company should not assume the 0% rate holds without confirming it on the exact date of each contract, given how recently this rule changed.
What a foreign company should confirm before signing
Before signing a service contract with a Colombian counterparty, a foreign company should confirm four points with a Colombian tax advisor. The first is the contract amount against 6,000 UVT, using the UVT value for the year of signing, which is COP 52,374 in 2026, per the DIAN.
The second is whether either party meets the qualified-party test, checking prior-year gross income or gross assets against the 30,000 UVT threshold. The third is whether a decree currently in force reactivates the rate on the signing date, since this rule has changed twice since 2025.
The fourth point is contractual rather than tax-related: stating clearly in the agreement who bears the economic cost of the tax, even though formal responsibility before the DIAN remains with the Colombian party. This same verification applies when payment is settled with an international contractor, a flow also covered in the guide on paying international contractors in USDC.
What Soulbit resolves and what remains the company's responsibility
Soulbit does not practice tax withholding or advise on Colombia's stamp tax. Determining whether a contract is taxed, calculating the amount in UVT, and filing the withholding with the DIAN remain obligations of the taxpayer and its accountant, not something a payments tool resolves.
What Soulbit V1 resolves is the payment layer itself: a Colombian company verified through KYB can receive or send the contract value in USDC or USDT, with institutional custody and payout in Colombian pesos through the local banking rail, with the movement recorded on-chain for reconciliation. That traceability helps an accountant document the date, amount, and counterparty of the operation when reviewing whether the contract was taxed, but it does not replace the tax analysis itself. The full product details are in what Soulbit is and how it works for an SMB.
Frequently asked questions
What is Colombia's stamp tax?
Colombia's stamp tax is a national tax that applies to certain documents and contracts granted or accepted by a qualified party in Colombia, under article 519 of the Tax Statute. It is triggered when the document exceeds a minimum amount set in UVT and a public entity, a legal entity, or a merchant above the legal income or asset threshold takes part in it. Colombia's tax authority, the DIAN, administers and enforces this tax.
Does a foreign company pay Colombia's stamp tax if it signs a contract outside Colombia?
A contract signed outside Colombia can still trigger the stamp tax if the service is performed in Colombia or if it creates payment obligations that are settled inside the country. Article 519 of the Tax Statute extends the taxable event to these two scenarios, in addition to a contract granted directly in Colombia. Where the signature is placed does not decide this on its own.
Who withholds Colombia's stamp tax on an international service contract?
The withholding agent follows a legal order of precedence: first a notary, if the document is raised to a public deed, then the state entity involved in the act, and otherwise the parties acting as contracting party, acceptor, or signer. In a private contract between a Colombian company and a foreign counterparty, the Colombian party, which falls under the DIAN's jurisdiction, is the one that practices the withholding in practice.
Are service export contracts exempt from Colombia's stamp tax?
Contracts for the export of goods or of domestically produced services are exempt from Colombia's stamp tax under the exemptions set out in the Tax Statute. This exemption does not automatically cover every contract with a foreign counterparty: it applies when the underlying operation qualifies as an export under Colombia's exchange and tax rules.
What is Colombia's stamp tax rate in 2026?
The general rate returned to 0% on January 1, 2026, once Decree 175 of 2025 expired. That decree had raised the rate to 1% between February and December 2025 under the internal commotion declared for the Catatumbo region. Colombia has issued several economic emergency decrees since then, so a company should confirm the exact rate in force on the signing date with a Colombian tax advisor and the DIAN.
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