On 16 October 2026, Bill 250/2026C was formally introduced before the Chamber of Representatives, proposing a structural reform to Colombia’s Financial Transaction Tax (GMF), commonly known as the 4×1.000 levy. The initiative outlines a progressive reduction schedule culminating in the tax’s full repeal by 2030, marking the most ambitious legislative attempt to eliminate the controversial levy since its inception. Beyond the phase-out timeline, the bill proposes amendments to the deductibility rules governing the GMF in annual income tax returns, potentially allowing a higher proportion of the tax to be claimed as a deductible expense during the transition period. Additionally, a special exemption for natural persons meeting specific vulnerability criteria is contemplated. The proposal responds to longstanding private sector and academic criticism regarding the GMF’s cascading effect, distortion of financial intermediation, and regressive impact on low-volume transactors.
Key Takeaways
- Defined Elimination Pathway: The bill establishes a clear statutory calendar for GMF rate reductions, providing certainty for corporate treasury planning and banking sector pricing models through 2030.
- Enhanced Deductibility Transition: Revised income tax deductibility provisions during the phase-out period could lower effective tax rates for compliant taxpayers, partially offsetting the GMF’s economic cost in interim years.
- Targeted Social Relief: The proposed exemption for vulnerable natural persons addresses equity concerns, though operationalizing eligibility verification will require coordination between DIAN and social registry databases.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement