Countries › Colombia › Guide › 10. Capital markets and finance › The tax on financial movements (GMF, 4 per 1,000) in Colombia: what triggers it, who withholds it, key exemptions for treasury, credit, factoring and portfolio repatriation, and the 50 percent deduction

The tax on financial movements (GMF, 4 per 1,000) in Colombia: what triggers it, who withholds it, key exemptions for treasury, credit, factoring and portfolio repatriation, and the 50 percent deduction

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Last verified: 2026-10-27 · Status: Stable

Colombia charges a 4 per 1,000 tax on financial movements (gravamen a los movimientos financieros, GMF) every time funds are disposed of from current, savings or Banco de la República deposit accounts, on bank drafts and on many fund, trust and accounting movements, withheld by the bank or supervised entity where the account or movement sits. The main exemptions for businesses are transfers between accounts of the same single holder at the same entity, credit disbursements credited to the borrower's account, factoring disbursements, interbank and market clearing operations and FX purchases solely to repatriate portfolio investments. Half of the GMF effectively paid and certified is deductible for income tax.

USD figures use the TRM of COP 3,157.94 per US dollar valid on 27 October 2026, certified by the Superintendencia Financiera and published on the national open data portal (datos.gov.co). Amounts in UVT use the 2026 UVT of COP 52,374 (DIAN Resolución 000238 de 2025) and amounts in minimum wages use the 2026 monthly minimum wage of COP 1,750,905 (Decreto 1469 de 2025). Conversions are for orientation only.

Key facts

Tax on financial movements (GMF)	0.4 %Estatuto Tributario art. 872, as of 2026-10-27 · in force
Share of GMF paid that is deductible for income tax	50 %Estatuto Tributario art. 115, as of 2026-10-27 · in force
Monthly GMF free withdrawals from one savings account per individual	350 UVTEstatuto Tributario art. 879 num. 1, as of 2026-10-27 · in force
FX purchases solely to repatriate portfolio investment exempt from GMF	Yes textEstatuto Tributario art. 879 num. 29, as of 2026-10-27 · in force
Credit disbursements to the borrower's own account exempt from GMF	Yes; onward payments to third parties are taxed textEstatuto Tributario art. 879 num. 11, as of 2026-10-27 · in force

The rule

1. The GMF is triggered by financial transactions that dispose of funds held in current or savings accounts or in deposit accounts at Banco de la República, and by bank drafts. It is also triggered by transfers or assignments of rights in collective funds between co owners and their withdrawal by the beneficiary or settlor, by disposals through collection agreements without an account, by debits to accounting or other accounts to pay or transfer to third parties, and by credit disbursements and payments from clearing and settlement of securities, repos, derivatives, FX or commodities that are used to pay third parties. FX operations count as one operation until payment to the holder, and card and electronic payment flows count as one operation up to dispersion to the merchant.Estatuto Tributario art. 871 (added by Ley 633 de 2000, amended by Ley 788 de 2002, Ley 1430 de 2010, Ley 1111 de 2006, Ley 1819 de 2016 and Ley 2277 de 2022), Art. 871, 2000-12-29 official text · verified 2026-10-27

2. The GMF rate is 4 per 1,000. Taxpayers are the users and clients of entities supervised by the SFC or the Superintendencia de Economía Solidaria, and those entities themselves, including Banco de la República; for withdrawals from collective savings funds, the individual saver. Banco de la República and the supervised entities where the account, fund rights or accounting movement sits act as withholding agents and are responsible for collecting and paying it.
Cost to do it: COP 4 for every COP 1,000 moved; on a payment of COP 3,157,940,000 (US$1,000,000) the GMF is COP 12,631,760 (US$4,000).Estatuto Tributario art. 872 (as amended by Ley 1819 de 2016 art. 214), art. 875 and art. 876, Art. 872, 875 and 876, 2016-12-29 official text · verified 2026-10-27

3. Exempt, among others: withdrawals of up to 350 UVT a month from one savings account, electronic deposit or prepaid card per single individual holder, chosen by the holder; transfers between current accounts at the same credit institution belonging to the same single holder; transfers between current, savings and other accounts or prepaid cards at the same entity in the name of the same single holder, and transfers between investments managed for the same beneficiary by a stockbroker, trust company or investment management company; interbank loans and repo, simultaneous and securities lending operations between supervised entities; clearing and settlement payments in securities, derivatives, FX and commodities markets (but not payments to third parties); and FX purchases and sales between FX market intermediaries through dedicated accounts.
Cost to do it: The 350 UVT monthly individual exemption is COP 18,330,900 (about US$5,805) in 2026; it does not help companies.Estatuto Tributario art. 879 num. 1, 2, 5, 6, 7, 12 and 14 (as amended by Ley 1430 de 2010, Ley 1607 de 2012 and Ley 1739 de 2014), Art. 879, 2000-12-29 official text · verified 2026-10-27

4. Also exempt: credit disbursements credited to the borrower's savings or current account or paid by restricted cheque by credit institutions and financial cooperatives, and foreign loans disbursed in pesos by non residents under the FX rules (but disbursements or payments to third parties such as payroll, suppliers or purchases are taxed, except individuals' credit card use); disbursements by finance companies or banks to suppliers of goods for financial leasing with purchase option; use of funds for factoring or purchase or discount of receivables by funds, trusts, persons or entities legally able to do so; withdrawals from electronic deposits on the terms of Decreto 2555 de 2010; demand deposits that SEDPEs place in other supervised entities; and FX purchases whose sole purpose is the repatriation of portfolio investments.
Example: A foreign investor selling Colombian listed shares and buying dollars to take the portfolio proceeds abroad does not pay GMF on that FX purchase (num. 29). / On a US$10 million portfolio repatriation that saves about US$40,000.Estatuto Tributario art. 879 num. 11, 21, 25, 28 and 29 (as amended or added by Ley 1607 de 2012, Ley 1739 de 2014, Ley 1819 de 2016 art. 217 and Ley 2010 de 2019 art. 99), Art. 879 num. 11, 21, 25, 28 and 29, 2019-12-27 official text · verified 2026-10-27

5. Fifty percent of the GMF effectively paid by taxpayers in the taxable year is deductible for income tax, whether or not it relates to the taxpayer's business, provided it is certified by the withholding agent. A deduction may not also be claimed as a cost.
Example: A company that paid COP 120 million of GMF in 2026 deducts COP 60 million, saving COP 21 million at the 35 percent corporate rate. / Of every US$4,000 of GMF, US$2,000 is deductible; at 35 percent the net cost falls to about US$3,300.Estatuto Tributario art. 115, as amended by Ley 2277 de 2022 art. 19, Art. 115, 2022-12-13 official text · verified 2026-10-27

6. The withdrawal of funds from electronic deposits held at SEDPEs is exempt from GMF on the terms of ET art. 879 num. 25.Ley 1735 de 2014, Art. 2, 2014-10-21 official text · verified 2026-10-27

Flow	GMF	Rule
Supplier payment from the company current account	COP 12,631,760 (US$4,000)	Taxed, art. 871 and 872
Transfer between two accounts of the same company at the same bank	0	Exempt, art. 879 num. 2 and 14
Bank loan credited to the company account	0	Exempt, art. 879 num. 11
Then paying suppliers with the loan	COP 12,631,760 (US$4,000)	Taxed, art. 879 num. 11 inc. 2
Factor's disbursement buying receivables	0	Exempt, art. 879 num. 21
FX purchase to repatriate portfolio investment	0	Exempt, art. 879 num. 29
Income tax deduction on GMF paid	50% of GMF	Art. 115

GMF on typical corporate flows, US$1,000,000 (COP 3,157,940,000) at the TRM of COP 3,157.94 (Estatuto Tributario art. 871, 872, 879 and 115)

Worked example

A US owned Colombian subsidiary receives a US$1,000,000 intercompany loan disbursed in pesos, which is exempt when credited to its account, then pays local suppliers with it, paying COP 12,631,760 (US$4,000) of GMF, of which half is deductible (Estatuto Tributario art. 879 num. 11, 872 and 115).
Moving cash between its two accounts at the same bank costs nothing, but moving it to an account at another bank is a taxed disposal (art. 879 num. 2 and 14; art. 871).

Step by step

1. Map treasury flows and identify which are disposals of account funds (taxed) and which fall within an art. 879 exemption.
2. Concentrate operating accounts at one entity where intra holder transfers are exempt.
3. Ask lenders to disburse to your own account and keep records that link disbursements to the exemption.
4. Use factoring and FX repatriation exemptions where they apply and keep the supporting documents and dedicated accounts the exemptions require (art. 879 parágrafo 2).
5. Collect the withholding agent's annual GMF certificate to support the 50 percent deduction (art. 115).

Common traps

Assuming transfers between group companies at the same bank are exempt: the exemption needs the same single holder (art. 879 num. 2 and 14).
Treating a loan disbursement paid straight to a supplier as exempt: payments to third parties are taxed (art. 879 num. 11).
Claiming the full GMF as a deduction: only 50 percent, and only with the agent's certificate (art. 115).
Forgetting that moving money out of collective investment funds and some accounting debits also trigger GMF (art. 871).

Sources

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