20 November 2013

Global Tax Alert

News from Americas Tax Center

Colombia proposes postponing to 2015 scheduled reduction of financial transactions levy

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During 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 first debate, bill 112/2013 Chamber of Representatives, 120/2013 Senate, which would postpone a scheduled reduction of the levy on financial transactions. If approved, the levy rate would remain at 4x1000 for FY2014 and decrease to 2x1000 in 2015.

Background
Law 1430 of 2010 eliminates the levy on financial 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, finally 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 final law is enacted.

For additional information with respect to this Alert, please contact the following: Ernst & Young Ltda., Bogot Ricardo Ruiz Carlos Parra

+57 1 484 7537 +57 1 484 7931

ricardo.ruiz@co.ey.com carlos.parra@co.ey.com

Co-Directors of EY Americas Tax Center

Global Tax, Eric Solomon, Washington, DC Global Tax, Michael Mundaca, Washington, DC

EY Americas Tax Center

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

Global Tax Alert

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EYG No. CM3976

This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

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