1. A natural person earning more than COP 10,000,000 per month will pay more taxes because they will have less tax benefits and deductions to choose from. It increases the progressivity of the tax system in Colombia.
2. A natural person who has wealth of more than three billions pesos (discounting debts) will pay a wealth tax – another progressive element.
3. A natural person with income of less than COP 10,000,000 will pay less income tax than today if they have dependent children, parents or grandparents. A natural person will be able to reduce his income tax for each electronic invoice he presents for his purchases.
4. For the first time, sugary drinks, ultra-processed food and single-use plastics will pay an extra tax. Taxes are increased for the financial, mining and oil sectors. These are considered health and green taxes and have been gradually rolled out in many other jurisdictions.
5. The mostly likely impact of the Tax Reform on the Real Estate sector is the increase of ganancias ocasionales from 10% to 15% and the likely imposition of an Impuesto de Timbre which will be charged for properties over a certain amount, as described above.
Questions, comments? Contact me today and I will be happy to discuss any of these issues further with you.