Beginner's Guide to How 4x1,000 Collection Works

Among the taxes that impact the consumer, one that is often in the focus of the conversation It is called 4×1,000. However, in most cases, knowledge about its operation and usefulness is superficial.

The first thing to know is that the one also known as Tax on Financial Transactions (GMF) It is a tax that is applied to different financial transactions made by Colombians.

This mechanism consists of four pesos being allocated to paying this tax for every thousand pesos of a transaction (whether it be a withdrawal, a transfer or a payment). If you want to be more technical, the GMF is equal to 0.4% of the value of the transaction.

To give you an idea, if you make a withdrawal of $1,000,000, you will have to pay $4,000 for this concept. That is, in order to carry out the transaction, you would have to have at least $1,004,000 in your account.

ATM

PHOTO: iStock

And where does that money go?

The money raised through this tax is collected by the banks. However, its final recipient is the Government, so these resources become part of the State’s accounts.

In general terms, The money raised is used to finance social, security and health programs.

(More news: How much does the Ministry of Finance expect inflation to close in 2024?)

Bank

iStock

Exceptions of the 4X1000

Savings accounts with a monthly activity of less than 350 UVT are exempt from the collection of this tax, that is, In the case of 2024, that value is set at 16.4 million pesos.

If this limit is exceeded, the Tax Code states that the user may have an account with the benefit of exemption. In order to do so, the account holder must request and indicate to the respective financial institution which account will benefit.

In addition, the GMF is not included if the transfers between current or savings accounts are in the same bank and are in the name of one and the same account holder.

(See: Financial mistakes you should avoid if you are young, according to experts)

PORTFOLIO

Source link