What Changes with the 4x1,000 en Colombia on December 13, 2024?

Tax attorney Juan Pablo Díaz was interviewed for an article published by Cambio analyzing changes to Colombia's 4x1,000 tax. Officially called the Duty on Financial Movements (GMF), the tax was introduced in 1998 as a temporary measure to help the country navigate the economic crisis it was facing, but it has since become permanent and one of the favorites of the government. However, under the 2022 tax reform, the accounts of the same taxpayer will be exempt from the GMF if the monthly transactions total does not exceed 350 tax rate units (UVT). Mr. Díaz highlighted that thanks to this change, which takes effect Dec. 13, 2024, taxpayers will be able to designate multiple accounts as exempt, instead of only one previously.

"This change is an important advancement for taxpayers who prior to December 13 found themselves only exempt from the 4x1,000 in one of their savings accounts or special savings accounts for pensioners and electronic deposits or open prepaid cards," he said.

READ: What Changes with the 4x1,000 en Colombia on December 13, 2024?