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Is the 4x1000 still being applied to you despite the legal changes? Here’s why
Despite tax reforms aimed at reducing the impact of the 4×1000 tax, this levy remains in effect for many financial transactions in 2025.
Why? Here’s an explanation of the situation and the expected changes.
What is the 4x1000 tax?
The 4×1000 tax, formally known as the Financial Transactions Tax (GMF), is a levy that charges 4 pesos for every 1,000 pesos moved in financial transactions.
This includes withdrawals, transfers, and other movements made through bank accounts, digital wallets, and other financial platforms.
The proposed changes in the law
Law 2277 of 2022 introduced a reform to expand exemptions from the 4×1000 tax.
Before this law, users could designate a single bank account as exempt from the tax, as long as their monthly transactions did not exceed 350 Tax Value Units (UVT).
In 2024, this amount was equivalent to 16,472,750 pesos, and in 2025, the cap increases to 17.4 million pesos due to an adjustment in the UVT value.
With the reform, the exemption would apply to all accounts owned by a user, provided the combined total of transactions across all accounts does not exceed the 350 UVT limit.
This change represents a significant benefit for those using multiple accounts or financial platforms like digital wallets.
Why is the 4x1000 still being charged?
Some reasons include:
- Lack of Integrated Systems:
Financial institutions need to develop a centralized database to monitor the total movements of a user across all their accounts, including traditional banks, cooperatives, employee funds, and digital wallets. - Delays in Digital Platforms:
Platforms like Nequi and Daviplata have reported that, while the reform is officially in effect, they cannot yet apply it because their systems are not ready. Nequi, for example, confirmed that its users are still being charged the tax on every transaction. - Complexity of the Financial System:
Coordinating between various institutions and financial platforms has proven to be a greater challenge than anticipated, leading to the continued application of the tax in most transactions.
Impact on digital wallet users
Platforms like Nequi, which are considered low-value deposit services, have been particularly affected by these delays. This means that users of these platforms continue to pay the 4×1000 on every financial movement, even in cases where they should be exempt under the new regulations.
What can you expect?
Although delays have occurred, financial institutions are working on the necessary updates to comply with the reform.
According to projections, these updates could be implemented gradually throughout 2025.
In the meantime, as a user, you should:
- Check with your bank or digital wallet provider to see if you have a registered exempt account.
- Plan your financial transactions with the 4×1000 impact in mind.
The 4×1000 tax remains a financial burden for many Colombians, especially for those managing multiple accounts or using digital wallets.
While the legal changes represent a step towards tax simplification, their implementation is taking longer than expected.
If you have questions about the 4×1000 tax, your tax obligations, or need professional guidance, contact us! At Nexo Legal, we are here to help you manage your finances efficiently.
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Get started with a free case assessment
What will happen after you fill out this form?
After submitting the form, your case undergoes a comprehensive review by our team of specialist to assess its viability. Providing clear and concise information about your objectives accelerates this process.
Subsequently, a specialist will be assigned to your case, reaching out to you within a day to clear up details about your case and outline the next steps to help you achieve your goals.
