The tax reform of the government of Gustavo Petrowhich was approved and reconciled and is awaiting the vote on the final document in Congress (which would take place this Tuesday, November 15), expects to raise 20 billion pesos during 2023.
(See: Tax: dividends, income and other keys to the final text).
Since August 8 when he filed, one day after the presidential inauguration, The project had several modifications. Among those that stand out the most are the fall in the tax on the highest pensions, the elimination of gasoline subsidies in border areas and the non-approval of the 20% payment on rent to churches.
Total, 5 billion pesos fell compared to the initial goal of 25 billion pesos.
“This is the most liberal and consensual reform in history. More than a figure we are talking about hundreds of thousands of homes throughout our geography that are going to have a better life”, said the Minister of Finance, José Antonio Ocampo.
So things are, below, we present the taxes that Colombians will have to pay in 2023.
(See: Tax and Budget, Petro’s first achievements in his presidency).
People earning $10 million and up will pay more
The tax reform brings a new package of taxes for natural people. Some of them will have to pay more in terms of income, assets and healthy and environmental taxes.
The first thing is that those who earn more than 10 million pesos will pay more. This is because the total amount that a person can deduct when making their income statement was limited.
In the case of dividends, These will have rates that will range from 0% to 15% in the case of natural persons and 20% in the case of foreign entities and non-resident natural persons.
Occasional gains (inheritance, sale of real estate…) were taxed at 15%.
(See: Tax: taxes that definitely fell from the reform).
In short, according to calculations by the Javeriana University Fiscal Observatory, “A household with an income of 13.1 million would have to add only 17,618 pesos per month to its current income tax payment, which represents 0.13 percentage points in its effective tax rate. To another who has 15.6 million pesos per month, 61,119 pesos (0.39 points) would be added and to one of 25 million pesos per month 343,000 pesos per month (2.25 points)“.
Some natural persons will have to pay more in terms of income, wealth and healthy and environmental taxes.
Assets from $ 3,000 million
As for the wealth tax, This will be progressive with marginal rates: 0.5% for those of more than 3,000 million pesos; 1% for those of more than 5,000 million pesos and 1.5% for those of more than 10,000 million pesos.
(See: Deficit and social spending?: what would the tax collection be used for?).
With the aim of discouraging emissions, the tax authority modifies the carbon tax, a levy that falls on the equivalent carbon content (CO2eq) of all fossil fuels in the country (coal, fuel oil, ACPM, gasoline and natural gas, among others).
As approved, this will have a specific rate considering the emission factor for each fuel and will correspond to 20,500 pesos per ton of carbon equivalent.
CO2 emissions.
The companies in this sector are the ones that will pay the most with this reform. Oil tankers and miners will have to pay a rent surcharge which varies with the international price of the last 10 years. In the case of oil, it would be progressive of 5%, 10% and 15%. In addition to this, they will not be able to deduct royalties.
Hydroelectric and banks
Likewise, the hydroelectric plants were left with a temporary surcharge from 2023 to 2026 of 3 points, that is, 38%, while the financial entities will assume another that will reach 5 points, that is, 40%.
(See: Dialogue with Bruce Mac Master is “interrupted” according to Minister Ocampo).
ultra-processed foods
This proposal places a tax of 10% in 2023, 15% in 2024 and 20% in 2025 on food industrially ultra-processed or with a high content of added sugars, sodium or saturated fats.
They will be recorded from mecato to precooked arepas, cereal bars, meatballs, the table chocolate, the Chocorramo, the sausages, the chocolate bars, the chips, the plantains, the donuts or the achiras. Even baby compotes.
As for ultra-processed sugary drinks, the tax will depend on the level of added sugar, which means that they will be taxed: soft drinks, malt-based drinks, tea-type drinks, fruit-based drinks in any concentration, soft drinks, juices and fruit nectars, energy drinks, sports drinks, soft drinks, flavored waters and powder mixes.
Some of the products that were saved from the tax were infant formulas or electrolyte solutions, bread, honey, milk, sandwiches, wafers, arequipe, salami, mortadella and botifarra.
This tax will take effect from November 2023.
The Chocorramo will have tax
Several products with tax would be doubly taxed on behalf of the one that will apply for single-use plastics, such as containers, packaging and packaging that have an equivalent to 1.9 pesos per gram of plastic used.
According to Daniel Mitchell, president of Acoplásticos, the association that brings together and represents the companies in the plastic production chains, the rate is approximately equivalent to a 20% and 25% tax on the plastic product, which, in turn, , will represent a increase in the price of food, drink or toilet or cleaning product that comes packaged or packaged, which can be between 1% and 6%.
Basic products that will be impacted by this tax are: ground oats, brown rice, corn starch, barley, wheat and corn cuchuco, shrimp, toast, whole wheat bread, flavored milk, milk modifier powders, cakes, cupcakes, kumis , condiments, liquid hand soap, among others.
This tax will also be charged to bags and other agricultural packaging used to transport products such as potatoes, onions, tomatoes, oranges, carrots, between many more.
(See: Shyness of the Government?: This is how taxes were imposed on natural persons).
VAT on bullfights and the purchase of pets
The tickets for admission to shows, such as bullfights, must pay VAT, as well as the sale of pets, such as cats, dogs, rabbits or hamsters.
Likewise, it was also determined that there will be 0 tariff for agricultural products and inputs.
Dogs are pets
Jail for evaders in third recidivism
The reform toughens the punishments for tax evaders. What was approved is that in the third recidivism people go to jail. For example, prison will be incurred from 48 to 108 months, that is, from 4 to 9 years, who omits assets or declares a lower value or declares non-existent liabilities, with the purpose of fraud or evasion for an amount equal to or greater than 1,000 minimum wages.
TIME
