What Colombian Taxpayers Need to Know

Colombia’s tax authority, the Dian, has set the 2025 income tax filing window for individuals from 12 August to 26 October 2026. But finance experts stress that the real opportunity to reduce the final bill starts long before those dates. With careful record‑keeping and a year‑round planning mindset, taxpayers can legally lower their taxable income using several deductions enshrined in the Estatuto Tributario.

Accounting and software firm Siigo recently highlighted five specific benefits that many individuals can access to shave their tax liability. These range from dependant relief to health‑related payments, each with its own documentation requirements and annual limits. Understanding how they work now could mean a smaller payment to the Dian—or even a refund.

How the Five Deductions Actually Work

1. Dependent Deduction

Article 387 of the tax code allows a deduction of up to 10% of gross employment income, capped at COP 19,122,816 for taxpayers who worked the full 2025 calendar year. The benefit covers children, parents, a spouse and other legally recognised dependants, provided the taxpayer holds official supporting documents that prove the dependency status. For high‑earners, hitting the 10% ceiling is straightforward, but even middle‑income households can save significantly if they correctly claim eligible relatives.

2. Voluntary Pension Contributions and AFC Accounts

Money you voluntarily add to a pension fund or deposit into a Cuenta de Ahorro para el Fomento de la Construcción (AFC) not only boosts retirement savings or a future home purchase but also directly reduces your taxable base. There are statutory caps, but the mechanism is one of the most direct ways to lower taxable income while building long‑term wealth. The key is making the contribution during the tax year itself—retrospective payments won’t count for the 2025 return.

3. Donations to Special‑Regime Entities

Donations to organisations registered under the Régimen Tributario Especial (RTE) generate a tax discount equal to 25% of the donated amount. The discount is applied to the tax due, not merely to the base, making it more powerful than a simple deduction. To claim it, you must obtain a certificate from the recipient entity confirming the donation meets legal requirements.

4. Mortgage and Leasing Interest

Interest paid on home mortgage loans or leasing contracts for acquiring a primary residence can also be deducted. The financial institution must issue an annual certificate detailing the exact interest paid during the tax year. This deduction reduces the taxable base, with no separate cap beyond the general limits on total deductions.

5. Prepaid Medicine and Health Insurance

Premiums for prepaid health plans and health insurance policies are deductible when they cover the taxpayer, spouse, children or authorised dependants. As with the dependent deduction, Article 387 governs this benefit, and proof of payment is essential. For families already paying high medical insurance costs, this can be a substantial annual saving.

Your Pre‑Filing Checklist

  • Identify all qualifying dependants and gather birth certificates, proof of cohabitation or financial support documents now—don’t wait until October.
  • If you haven’t made a voluntary pension contribution or AFC deposit for 2025, check whether you can still do so before the accounts close; the amount will directly shrink your taxable income.
  • Request the annual interest certificate from your mortgage lender or leasing company; keep it with your tax records.
  • For prepaid medicine or health insurance, obtain an itemised statement of premiums paid in 2025 for all covered family members.
  • If you donated to an RTE‑registered charity, ask for the official certificate that specifies the donation amount and the organisation’s registration, as this gives you a 25% credit against tax owed.
  • Begin organising receipts and certificates early so that when the Dian filing window opens on 12 August, you can submit an accurate return that fully captures all your legal deductions.