On the AIU, the part of the contract price that covers the supplier's administration, contingencies and profit (administración, imprevistos y utilidad), which can never be lower than 10% of the contract value. That is the DIAN's position since Ruling 16207 of August 30, 2026, which reversed what it had said in April and June of the same year, when the base was the full payment. The minimum amount that triggers withholding is still measured against the full payment.
First, two Colombian terms
Withholding tax at source (retención en la fuente). In Colombia, the company that pays for a service withholds part of the payment as an advance on the supplier's income tax and pays it to the DIAN, the national tax authority.
AIU. For cleaning, security and temporary staffing contracts, Colombian tax law looks at the price in two parts: the cost of the people who deliver the service, and the AIU, which is the supplier's margin.
What changed in 2026?
The DIAN changed its position twice in the same year.
- April and June 2026. In rulings 005224 (April 6) and 010208 (June 9), the DIAN held that the special AIU base applied only to VAT, and that income tax withholding was calculated on the full payment.
- August 2026. In Ruling 16207 of August 30, the DIAN reversed both rulings and concluded that withholding is applied to the AIU.
Why did the DIAN change its position?
Two rules pointed in different directions, and one ranks above the other.
Article 462-1 of the Tax Code, which is a law, sets a special base for these services: the AIU portion of the contract, which cannot be lower than 10% of the contract value. Its final paragraph extends that base to withholding taxes.
Article 1.2.4.4.10 of Decree 1625 of 2016, a regulation, sets withholding on these services over the full payment: 1% for temporary staffing and 2% for cleaning and security.
The DIAN applied the hierarchy of norms: the law prevails over the regulation. The base is the AIU.
Which services does it cover?
Those listed in article 462-1:
- integrated cleaning and cafeteria services,
- security services authorized by the Superintendency of Private Security,
- temporary staffing provided by agencies authorized by the Ministry of Labor,
- and services provided by worker cooperatives and by unions under a union contract, on the terms of the same article.
The special base comes with a condition: the supplier must be up to date with its labor obligations, or compensation obligations in the case of cooperatives and unions, and with social security contributions.
An example
A security contract of COP 10,000,000 a month, with an AIU of 10% on the invoice:
| Base: full payment | Base: AIU | |
|---|---|---|
| Withholding base | COP 10,000,000 | COP 1,000,000 |
| Withholding at 2% | COP 200,000 | COP 20,000 |
The supplier receives the difference on every payment. For temporary staffing the calculation is the same at 1%: on an AIU of COP 1,000,000, withholding is COP 10,000.
To make the calculation work, the invoice has to show the AIU separately. Without that figure, the accounting system has nothing to apply the rate to.
What if the invoice shows an AIU below 10%?
The base can never be lower than 10% of the contract value. If the invoice shows a smaller AIU, withholding is calculated on that 10%. In the example above, an invoiced AIU of 6% (COP 600,000) leaves the base at COP 1,000,000.
Does it also apply to ICA in Bogotá?
ICA is the municipal tax on business activity. The final paragraph of article 462-1 extends the same special base to ICA and to withholding on local taxes. For a company that pays these services in Bogotá, that includes ICA withholding, so both setups, income tax and ICA, are worth reviewing together.
What about amounts withheld on the full payment between April and August?
If a supplier considers that too much was withheld, article 1.2.4.16 of Decree 1625 of 2016 lets it ask the withholding agent for a refund, in writing and with supporting documents. The agent checks the request, refunds the excess, and deducts it from the withholdings it has yet to file and pay. If that period's withholdings fall short, it can deduct the rest in later periods.
What this means for the parent company
- A setup change in the local system. Withholding on these suppliers has to run on the AIU, in both income tax and ICA.
- An invoicing requirement for suppliers. The AIU has to appear separately on each invoice.
- A possible request from suppliers for withholding taken on the full payment between April and August 2026.
What to do with this
- Review the withholding setup, for income tax and for ICA, for your cleaning and cafeteria, security and temporary staffing suppliers.
- Check that invoices show the AIU and that it is at least 10% of the contract value.
- Keep the minimum amount measured against the full payment.
- Have the refund procedure ready in case a supplier asks for the excess withheld.
Sources
- DIAN, Ruling 16207 (internal 1587) of August 30, 2026 — DIAN regulatory database
- DIAN, Ruling 010208 (internal 907) of June 9, 2026 — DIAN regulatory database
- Tax Code, article 462-1 — Secretaría del Senado
- Decree 1625 of 2016, articles 1.2.4.4.10 and 1.2.4.16 — as transcribed by the DIAN in Ruling 010208 of 2026 and Ruling 26735 of 2019