Taxes on a CDT in Colombia: what is withheld and what you really pay

When your CDT (certificate of deposit) matures, the bank does not hand over all the interest: it keeps part of it as withholding tax (retención en la fuente). Many people think that is the tax, and it is not always so. Let’s see what is deducted, why and what happens later on your income tax return.

1. Withholding tax: 4% of the interest

On returns from fixed income securities such as CDTs, bonds and TES, the institution withholds 4%. On other financial returns, such as savings accounts and collective investment funds, the general withholding rate is 7%.

Withholding is not an additional tax: it is an advance payment on income tax. If you file a return, you subtract it from what you owe; if more was withheld than you owed, you may have a balance in your favor.

2. An example in pesos

3. The inflationary component: the part that is not income

Part of the interest only makes up for inflation, so the law does not treat it as a gain. For individuals who are not required to keep accounting books, that inflationary component was 55.43% of financial returns in tax year 2025 (Decree 898 of 2026). The percentage changes every year.

In the example, of the COP 1,200,000 of interest, about COP 665,160 is not taxable income and about COP 534,840 is. The tax is calculated on that part, depending on your other income and your bracket. That is why, for many people, the final tax on a CDT is lower than the withholding, or even zero.

4. The 4-per-thousand tax

The financial transactions tax (gravamen a los movimientos financieros, or “4 per thousand”) is charged when money leaves your account. You can mark one account as exempt: withdrawals of up to 350 UVT a month do not pay it. In 2026 the UVT (the tax value unit) is COP 52,374, so the cap is COP 18,330,900 a month.

5. What to review every year

• The inflationary component percentage (the government publishes it every year).
• The value of the UVT, which moves the caps for the 4-per-thousand tax and for filing a return.
• Your withholding certificate: the bank issues it and you need it to file.

Sources: Decree 1625 of 2016 (withholding tax on financial returns), Decree 898 of 2026 (inflationary component for tax year 2025), Tax Statute art. 879 and DIAN (4-per-thousand tax and the 2026 UVT). This article is educational; for your particular situation, consult your accountant.