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What Is The Tax On Financial Movements?

income tax

The tax is still applied to financial movements (GMF), or the well-known 4X1000 in Colombia. Tax charged to financial transactions made as withdrawals. It is made to savings accounts, checking accounts, withdrawal in management check and deposits of the Daisy Bank.

It is a tax of the National Government created to cover the crisis and for having in the country. The collection is done by all banks, but then sent to the government coffers. Its history begins towards the year 1998, in order to raise money temporarily to stabilize the economic system crisis. But when problem after problem arose in the economy of the country, the tax was settled as permanent.

The attempt to dismantle it has been in vain, the financial crises have achieved their decree to follow. With the law 1819 in 2016, it was implemented as permanent. Due to their excessive collection for all financial movements, people began to take out all the money from bank accounts. The affectation caused the lack of money circularization. Therefore, the government proceeded to make some exceptions to the movements .

 

Tax exemptions to financial movements

Tax exemptions to financial movements

  • Each holder has the right to exceptionally mark a savings account. To avoid charging 4X1000, you should not exceed the amount of $ 11,994,500 for the year 2019.
  • Also exempt from 4X1000, all transactions in the form of transfer between accounts of the same holder. Whether savings, checking, collective accounts that are in the same bank.
  • All movements made to a single holder from stock brokerage companies, fiduciaries or investment managers. Of course they are monitored by the Superfinancial.
  • Pensioners are exempt from the account opened to receive the pension from the entity that, as a pension fund, records their allowance.

 

An incentive to the assessment of financial movements

financial movements

Finally, companies have the right to have five exempt accounts, as the government gives them the opportunity to encourage investment. So they can access credits and maintain good relations with financial institutions.

With the tax reforms currently made it has not been possible to dismantle this tax. Most likely it will be for a long time.

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