What will happen with the 4 x 1000 tax in Colombia?

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The 4x1000 tax has been a topic of debate in Colombia for years. Since its implementation, this contribution has raised questions among citizens about its purpose, how it affects their finances, and what changes could impact its application.



With the recent regulatory changes, it is important to engineer database how this tax evolves and what it means for Colombians. To understand it in detail, we invite you to continue reading.



taxes in colombia


What is the origin of 4x1000?


The Financial Transactions Tax (GMF) or popularly known as 4x1000, is a tax created in Colombia in 1998 under the mandate of former president Andrés Pastrana, to confront a banking financial crisis.



At the time, it was a temporary measure lasting one year and the charge was 2 pesos, which is why it was known as 2x1000. But as it was a practical and significant collection alternative, it was maintained over the years until the amount was adjusted and 4x1000 was achieved.



How do you get the 4x1000 tax?
This tax determines that people who have a bank account in any financial institution in the country must pay 4 pesos for each movement of 1,000 pesos. It is one of the taxes in Colombia that banks receive and transfer to the public coffers, representing a source of income for the State, for example, in January 2024, 1,300,000 million pesos were collected according to the media El País .



The formula to perform your calculation is the following: Value to withdraw x 4 / 1,000





How did the 4x1000 work before the new regulations?


Previously, the tax was applied to transactions made from bank accounts that were not exempt. Thus, users could request the exemption of 4x1000 for one of their savings accounts, as long as they did not exceed 350 tax value units (UVT) per month.



Common problems


Lack of information: The process was not always clear, and many ended up paying the tax unnecessarily.

Exemption Limitations: Only one account per person could be exempt, causing inconvenience for those managing multiple accounts.