2024-03-19 20:21:21
The director of National Taxes and Customs (DIAN), Luis Carlos Reyes, announced the abolition of the 4×1,000 tax for those who carry out financial transactions below $16.4 million. This measure, approved in the 2022 Tax Reform, will come into effect on December 13.
As established in article 65 of Law 2277 of 2022, those whose financial operations do not exceed 350 Tax Value Units (UVT), will be exempt from the tax. “This applies to people whose financial movements do not exceed $16.4 million in total,” Reyes explained.
The elimination of the tax will be activated with the development of the information system required by the entities supervised by the Financial Superintendencies or Solidarity Economy, in accordance with the provisions of the Tax Reform.
You can read: The changes that the collection of the 4×1000 tax will have
The value of the UVT, determined annually by the DIAN, stands at $47,065 for this year. Multiplied by the 350 UVT, an exemption of $16.47 million is obtained, which is the limit to not be subject to 4×1,000 in 2024. For next year, the exempt amount could vary depending on the UVT established by the DIAN.
The 4×1,000 tax is levied on 0.4% of the total value of transactions carried out through financial entities. For every $1,000 in financial movement, $4 must be paid. However, this tax burden will no longer apply to those whose transactions are below the established threshold.
According to BBVA Bank, the income from this tax is collected by the banks and transferred directly to the Government, without the financial entities obtaining any benefit from this tax.
This measure seeks to alleviate the tax burden for citizens with minor financial transactions, thus promoting financial inclusion and economic flow.
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