Ministry of Finance Proposes Eliminating 1.5% Withholding on Card Payments

Financial Services attorney Camilo Gantiva Hidalgo was featured in an interview with Noticias RCN about the Colombian Ministry of Finance's draft decree proposing to eliminate the 1.5 percent withholding tax applied to payments made with debit and credit cards. Mr. Gantiva explained that the measure could improve merchants' cash flow by avoiding advance deductions on sales and instead shifting payment to the time taxes are filed. He also noted that eliminating the withholding could increase the visibility of transactions for Colombia's National Tax Directorate (DIAN) and, as a result, contribute to higher tax collections, while also supporting the modernization of the country's payment system.
 
Duration: 1:09 (Interview begins at 58:51)