Global Tax Alert (News from Americas Tax Center) | 20 November 2013

Colombia proposes postponing to 2015 scheduled reduction of financial transactions levy

  • Share

During a jointly held session on 30 October 2013, the third and fourth permanent economic Constitutional commissions from both the Chamber of Representatives and the Senate approved, on first debate, bill 112/2013 Chamber of Representatives, 120/2013 Senate, which would postpone a scheduled reduction of the levy on financial transactions. If approved, the levy rate would remain at 4x1000 for FY 2014 and decrease to 2x1000 in 2015.

Background

Law 1430 of 2010 eliminates the levy on financial transactions by 1 January 2018, using scheduled rate reductions from FYs 2014 to 2018. For FYs 2014 and 2015, the levy rate decreases from 4x1000 to 2x1000. It then decreases to 1% for 2016 and 2017, finally dropping to 0% in 2018.

Proposal to postpone

For budget reasons, the bill proposes to postpone the levy rate reduction scheduled to begin in FY 2014 until 2015. Rate reductions for 2016 through 2018, however, would remain in place.

The bill is pending approval in the plenary sessions, following the legislative procedure necessary to be incorporated as law. Future Alerts will cover legislative developments until the final law is enacted.

For additional information with respect to this Alert, please contact the following:

Ernst & Young Ltda., Bogotá
  • Ricardo Ruiz
    +57 1 484 7537
    ricardo.ruiz@co.ey.com
  • Carlos Parra
    +57 1 484 7931
    carlos.parra@co.ey.com

EYG no. CM3976