How to understand the assets tax and not fail in the attempt

In Colombia, the Heritage Tax has established itself as one of the most debated tax figures in recent years. This tribute falls on the accumulation of richness of Natural persons, Ilíquidas successions and some foreign companies that do not declare income tax in the country.

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This tax affects natural persons and ilíchidic successions, both Colombian and foreign, as well as outside entities with assets in the country, whose liquid heritage exceeds $ 3,585 million to January 1 of each year.

The rate varies progressively between 0.5% and 1.5%, although from 2027 it will be reduced to a range of between 0.5% and 1%. According to César Cermeño, director of the Master in Taxation of the University of Los Andes, this tax seeks to redistribute wealth through the contribution of those who have greater resources. In general terms, it has a progressive character, since the rates increase according to the value of net assets.

However, the Heritage Tax has been the target of criticisms that go beyond its social justification. “Mainly, it is indicated as an anti -technical tax burden, as it taxes the wealth that has already been taxed through the Income Tax and Dividends. This can discourage investment and cause capital migration to jurisdictions with more favorable fiscal regimes, ” Nicolás Mondragón says, senior associate of taxes in Brigard Urrutia.

And he adds that “A recurring argument on criticism is the impact that this tax on the liquidity of taxpayers has. When falling on ilequid assets, many are forced to sell property or business participations to fulfill their tax obligations. This process could, in the worst case, negatively affect the development and growth of the productive sector, especially in an environment where tax rates (adding income tax and dividend) can reach up to 48%, one of one of the highest in the region ”.

For his part, Moya Díaz comments that, “For taxpayers of assets that have their assets indirectly through a permanent establishment in the country, the formal duty to declare will be at the top of them because of their establishment. Similarly, the illiquid successions of causes without residence in Colombia at the time of their death will be taxed with respect to the heritage possessed in the country. ”

As for high -income taxpayers, Julio César Toro, partner of Toro associated, believes that natural or legal persons with High assets must contribute an additional percentage on the value of your net assets.

However, this progressive approach may be harmful to those who, although they have large assets, do not have sufficient liquidity to deal with tax loads. “A greater heritage, greater rate”, Toro explains, which could induce some taxpayers to modify their patrimonial structure to reduce the taxable base, such as moving assets to more favorable jurisdictions.

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And recommend that taxpayers consider tax planning strategies to optimize their tax burden. This includes reviewing patrimonial structures and exploring applicable fiscal benefits.
Finally, the director of the Master in Taxation of the University of the Andes warns about the importance of presenting The statement and pay the quotas within the established deadlines to avoid sanctions and interests per default.

Obstacle to economic development

Despite the exclusions and adjustments implemented, such as the exemption of the first $ 597 million in habitual housing for Colombian natural persons, The Heritage Tax remains a controversial issue.

Some consider it essential for the redistribution of wealth, while others see it as an obstacle to investment and economic development.

The open question is whether this tax, designed to promote fiscal equity, can be sustained in the long term without affecting the competitiveness of the country or discouraging investment.
In an increasingly interconnected global environment, where fiscal decisions can be easily transferred to other countries with softer fiscal regimes, Colombia must carefully evaluate the impact of this tax on its economy.

Portfolio writing