CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Colombia's Congress Approves Tax Reforms

Colombia's Congress Approves Tax Reforms

by Mike Godfrey, Tax-News.com, Washington

19 December 2014


Colombia's House of Representatives, the lower house of Congress, approved a bill containing a number of tax regime changes on December 15, 2014.

The reform package seeks to boost Government revenue and plug an emerging budget deficit, but one of its key measures is the gradual elimination of the corporate wealth tax by 2018.

A tax on large companies with a turnover of COP800m (USD332,685) or more will be introduced. The tax, to be known as CREE, will be levied at a rate of five percent in 2015, six percent in 2016, eight percent in 2017, and nine percent in 2018. The tax will be levied in addition to the corporate income tax.

After a u-turn from the Government, the country will continue to impose a wealth tax on the nation's most affluent taxpayers. A rate of 1.5 percent will continue to apply to wealth exceeding COP5bn. A rate of 0.2 percent applies to wealth of between COP1bn and COP2bn, 0.35 percent on wealth between COP2bn and COP3bn, and 0.75 percent on wealth between COP3bn and COP5bn. The tax is paid on January 1 each year.

Colombia also intends to gradually phase out a levy on persons with assets worth COP1bn by 2018. In 2015, this tax will be levied at a rate of 1.15 percent, before falling to as low as 0.4 percent in 2017. The reform package also extends the 0.4 percent tax on banking transactions until 2019.

The package was approved by the Senate on December 10. The tax changes are intended to fund social programs, such as free education and care for the elderly.

TAGS: tax | economics | fiscal policy | banking | budget | corporation tax | Colombia | education | tax reform | Tax | Financial Transactions Tax (FTT)

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »