Colombia Proposes Postponing to 2015 Scheduled Reduction of Financial Transactions Levy

8/13/2019 Colombia Proposes Postponing to 2015 Scheduled Reduction of Financial Transactions Levy

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Global Tax AlertNews from Americas Tax Center

20 November 2013

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Colombia proposes postponingto 2015 scheduled reduction

of nancial transactions levyDuring a jointly held session on 30 October 2013, the third and fourth permanent

economic Constitutional commissions from both the Chamber of Representatives and

the Senate approved, on rst debate, bill 112/2013 Chamber of Representatives,

120/2013 Senate, which would postpone a scheduled reduction of the levy on

nancial transactions. If approved, the levy rate would remain at 4x1000 for

FY 2014 and decrease to 2x1000 in 2015.

Background

Law 1430 of 2010 eliminates the levy on nancial transactions by 1 January 2018,

using scheduled rate reductions from FYs 2014 to 2018. For FYs 2014 and 2015,

the levy rate decreases from 4x1000 to 2x1000. It then decreases to 1% for 2016

and 2017, nally dropping to 0% in 2018.

Proposal to postpone

For budget reasons, the bill proposes to postpone the levy rate reduction scheduled

to begin in FY 2014 until 2015. Rate reductions for 2016 through 2018, however,

would remain in place.

The bill is pending approval in the plenary sessions, following the legislative procedure

necessary to be incorporated as law. Future Alerts will cover legislative developments

until the nal law is enacted.


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For additional information with respect to this Alert, please contact the following:

Ernst & Young Ltda., Bogot

Ricardo Ruiz +57 1 484 7537 [email protected]

Carlos Parra +57 1 484 7931 [email protected]

Co-Directors of EY Americas Tax Center

Global Tax, Eric Solomon, Washington, DC

Global Tax, Michael Mundaca, Washington, DC

Americas Tax Center Chief Operating Officer

Declan Gavin, Washington, DC

ATC - Customs

William Methenitis, Dallas

ATC - Global Compliance and Reporting (GCR)

Ken Brown, Dallas

ATC - Global Tax Desks

Gerrit Groen, New York

ATC - Tax Controversy

Rob Hanson (interim), Washington, DC

ATC - Tax Effective Supply Chain Management (TESCM)

Lisa Lim, New York

ATC - Tax Performance Advisory (TPA)

Gary Paice, Chicago

ATC - Tax Policy

Michael Mundaca (interim), Washington, DC

ATC - Value Added Tax (VAT)

Jean-Hugues Chabot, Montreal, Canada

ATC - Insurance

Terry Jacobs, Washington, DC

EY Americas Tax Center
mailto:[email protected]:[email protected]


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Colombia Proposes Postponing to 2015 Scheduled Reduction of Financial Transactions Levy

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