New Tax Reform Could Make Loans More Expensive in Bogotá

Tax attorney Juan Pablo Díaz was featured in a Valora Analitik article examining how Bogotá's Agreement 1084 of 2026 increases the Industry and Commerce Tax (ICA) for several financial activities. Juan Pablo explained that the ICA applies to gross revenue rather than profits after costs and operating expenses, so the higher tax burden could affect the profitability and financial planning of banks and financial technology (FinTech) companies. He also discussed how the changes may prompt financial institutions to reassess their business models, investment plans and operations, and push some companies to compare Bogotá's tax environment with incentives available in neighboring municipalities. Juan Pablo suggested that incentive programs consider factors such as company size, investment and job creation to balance the city's revenue objectives with its ability to attract and retain businesses.

"In practice, the increase in the ICA for banks and FinTechs could lead to a gradual increase in interest rates and commissions," he said.

READ: New Tax Reform Could Make Loans More Expensive in Bogotá