The 4×1.000 will end for those who make transactions of less than $13.3 million per month, regardless of whether they are handled in several financial entities.

Banks must consolidate information among themselves for the exemption to apply without the need to mark the account. It is worth mentioning that there is already an exemption for a single marked bank account.

The withholding agent institutions must adopt a control system that allows the verification and withholding of the tax on financial movements, so as to allow the application of the exemption of 350 UVT per month, “indicated in numeral 1 of article 879 of the Tax Statute, without the need to mark a single account”.

Details of the tax

In 1988, the National Government issued Decree 2331 as a temporary response to the financial crisis. In 1999 the Constitutional Court issued Rulings C-122 and C-136 to change the destination of the collection to public banks, financial cooperatives and relief for debtors of the Constant Purchasing Power Unit (Upac) system.

This change put an end to one of the most common myths: the 4×1.000 tax is not directed to the private banking sector, but this sector is only in charge of its collection and transfers the amount to the National Government. This money is equivalent to about 5% of the total collection for public finances.

In 2000, the tax became a permanent measure of $2 per $1,000, which is applied to movements in checking and savings accounts, credit cards, securities funds, use of checks, credits, transfer of funds, collections and payment of obligations.

According to information from the Banking and Financial Entities Association of Colombia (Asobancaria), that same year “the rate was increased to 3X1,000 with Law 633, and in 2003 it was raised to 4X1,000, on a transitory basis until 2007 (Law 863). However, in 2006 the 4X1.000 rate was fixed until today (Law 1111)”.

Source: La republica

https://www.larepublica.co/especiales/reforma-tributaria-2022/se-acaba-el-4×1-000-para-quienes-hagan-movimientos-menores-a-13-millones-al-mes-3422062