Following the Government's Announcement to Eliminate the Wealth Tax: Who Will Benefit, and What Will Happen to Tax Revenue?

Tax attorney María Alejandra Pedraza was featured in an El Tiempo article about the Colombian government's announcement that it will eliminate the wealth tax starting in 2027. According to María Alejandra, although the measure could result in an estimated annual reduction of COP$1.5 trillion in tax revenue, this could be offset by the resulting reduction in tax evasion and avoidance, as well as greater economic growth that would increase revenue from other taxes. She also noted that eliminating the tax could enhance Colombia's competitiveness, decrease the frequency of changes in tax residency and contribute to job creation in the country.

"Many investors are willing to pay taxes on the income they generate, but not on accumulated wealth derived from resources that have already been taxed," she said.

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