Executive summary

In support of the declaration of the State of Economic Emergency, the Colombian Government issued Legislative Decree 0044 on 21 January 2026, stating that there is a critical situation in the country regarding the provision of public electric energy service, particularly in the Caribbean region. Consequently, the Decree provides that two measures will be implemented, as described below.

(For background, see EY Global Tax Alert, Colombian Government establishes temporary taxes amid State of Economic Emergency, dated 7 January 2026.)

Parafiscal contribution to strengthen Superintendent of Public Services' Business Fund

This contribution applies to public service companies that provide public residential electric energy service (numeral 14.25 of Article 14 of Law 142 of 1994). The contribution rate for these companies is 2.5% of profit before taxes for fiscal year 2025, based on their 2025 Financial Statements reported to the Superintendence of Public Services.

The obligation arises on 2 February 2026 and must be paid in two installments, on 2 February 2026 and 15 May 2026. Payments will be as follows:

• First payment: 1.25% of profit before taxes according to the 2024 Financial Statements
• Second payment: A recalculated total amount due considering 2.5% of profit before taxes from the 2025 Financial Statements minus the amount paid in the first installment
• Late payments: Will be subject to interest

Energy Tax Consideration for fiscal year 2026.

The Decree also establishes an in-kind contribution equal to 12% of the energy effectively sold on the wholesale energy market. This applies to public utility companies engaged in hydroelectric generation with centralized dispatch in the Wholesale Energy Market to ensure service continuity in intervened companies (i.e., an energy-sector company that has been placed under formal intervention by the regulator because the company faces financial, operational or administrative deterioration that threatens its ability to reliably provide electricity service to users).

The operational execution, administration, allocation and settlement of the contributed energy will be carried out by XM S.A. E.S.P (company that administers the Wholesale Energy Market (ASIC, LAC) and manages the National Dispatch Center (CND) in Colombia).

This contribution must not affect tariffs, economic dispatch or market price formation.

Finally, the decree specifies that "this amount will constitute a tax credit of 50% against the income tax base of the taxpayer." If the credit exceeds taxable income, the excess may be used in the following taxable period.

Implications

Affected entities in the energy sector should prepare for these new financial obligations and consider the potential impact on their income tax obligations for the upcoming fiscal periods.