Colombia: A Never-ending Emergency

A landmark constitutional ruling is reshaping the conversation around emergency powers and tax legislation in Colombia.

In a new article, Rimôn attorneys Ana Lopez Murillo, Alejandra Becerra, and Fabiana Camargo Nunez examine a series of unprecedented events that culminated in the Colombian Constitutional Court becoming the first in the country’s history to suspend a decree declaring a state of economic emergency. The Court later ruled that the declaration was unconstitutional, reinforcing the principle that taxes may only be imposed through the legislative process except under narrowly defined constitutional circumstances.

The article explores how successive emergency declarations were used to introduce significant tax measures after Congress rejected multiple tax reform proposals, creating a complex legal landscape for taxpayers and businesses. While the first emergency framework has been struck down, a second emergency declaration related to severe flooding remains in effect, leaving taxpayers to navigate both ordinary tax legislation and emergency tax measures pending further constitutional review.

Among the topics the authors examine are:

• The constitutional limits on executive emergency powers in tax legislation.
• The significance of the principle of “no taxation without representation” in Colombia’s constitutional framework.
• The practical implications of the Court’s decisions for taxpayers, investors, and multinational businesses.
• What these developments may signal for Colombia’s next administration and future tax reform efforts.
• The broader lessons for Latin America when emergency powers intersect with democratic governance and fiscal policy.

As the authors explain, Colombia’s experience serves as a reminder that legal certainty and democratic legitimacy are fundamental to a stable tax system. Their analysis offers valuable insight for businesses and advisors monitoring constitutional, tax, and regulatory developments across Latin America.

Read the full article to learn more about this landmark constitutional decision and what it means for the future of tax law in Colombia and beyond: https://www.ifcreview.com/articles/2026/july/colombia-a-never-ending-emergency/