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Every bank debit pays a 4 per thousand tax

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

Abroad, moving money between bank accounts rarely carries a tax; in Colombia the financial transactions tax (GMF) charges 4 per thousand on each disposal of funds from current or savings accounts. Companies can deduct only 50 percent of the GMF they actually paid, if certified by the withholding agent. Exemptions are narrow, such as transfers between current accounts of one holder at the same bank and one savings account up to 350 UVT a month.

USD figures use the TRM (tasa representativa del mercado) of COP 3,157.94 per US dollar valid on 27 October 2026, certified by the Superintendencia Financiera and published on datos.gov.co. Conversions are for orientation only.

Key facts

Financial transactions tax (GMF) rate	0.4 %Estatuto Tributario art. 872, as of 2026-10-27 · in force
Share of GMF paid that is deductible	50 %Estatuto Tributario art. 115, as of 2026-10-27 · in force
Monthly GMF exemption for one designated savings account	350 UVTEstatuto Tributario art. 879 num. 1, as of 2026-10-27 · in force
UVT 2026	52374 COPDIAN Resolución 238 de 2025, as of 2026-10-27 · in force
TRM used for conversions on this page	3157.94 COP per USDTRM certified by the Superintendencia Financiera, valid 27 October 2026, as of 2026-10-27 · in force

The rule

1. The GMF is triggered by financial transactions that dispose of funds deposited in current or savings accounts, or in deposit accounts at Banco de la República, and by drafts of cashier's checks. It is an instantaneous tax, accrued when the funds are disposed of.
Cost to do it: 4 per thousand of each debit.
Example: Paying a supplier COP 500,000,000 from a current account costs COP 2,000,000 of GMF. / About US$158,331 paid, US$633 of GMF.Estatuto Tributario (Decreto 624 de 1989), art. 871 and 873 as added by Ley 633 de 2000 art. 1, Art. 871 and art. 873, 1989-03-30 official text · verified 2026-10-27

2. The GMF rate is 4 per thousand (0.4 percent).
Cost to do it: 0.4 percent of each taxable transaction.
Example: COP 500,000,000 of supplier payments a month costs COP 24,000,000 of GMF a year. / About US$7,600 a year.Estatuto Tributario, as amended by Ley 1819 de 2016 art. 214, Art. 872, 2016-12-29 official text · verified 2026-10-27

3. Taxes actually paid that relate to the business are 100 percent deductible, except income tax; for the GMF only 50 percent of the amount actually paid in the year is deductible, whether or not related to the business, provided it is certified by the withholding agent.
Cost to do it: Half of the GMF is a permanent cost.
Example: Of COP 24,000,000 of GMF a year, COP 12,000,000 is deductible; at the 35 percent corporate rate (ET art. 240) that saves COP 4,200,000, so the net cost is COP 19,800,000. / About US$3,800 deductible and US$1,330 of tax saved.Estatuto Tributario, as amended by Ley 2277 de 2022 art. 19, Art. 115, 2022-12-13 official text · verified 2026-10-27

4. Exempt from GMF are, among others: withdrawals from one savings account, electronic deposit or prepaid card per holder up to 350 UVT a month, if the holder designates it as the only one with the exemption; transfers between current accounts at the same credit institution belonging to one and the same holder; and credit disbursements credited to the debtor's account, while payments to third parties for payroll, services or suppliers remain taxed.
Cost to do it: Exempt band of 350 UVT a month (COP 18,330,900 in 2026).
Example: Moving funds between two current accounts of the same company at the same bank is exempt; moving them to an account at another bank is taxed. / The 2026 savings exemption is about US$5,805 a month.Estatuto Tributario, art. 879 as amended (num. 1 by Ley 1739 de 2014 art. 47; num. 11 by Ley 2010 de 2019 art. 99), Art. 879 num. 1, 2 and 11, 1989-03-30 official text · verified 2026-10-27

Worked example

A subsidiary receives customer payments at bank A, sweeps them to bank B for treasury and then pays suppliers from bank B. Each debit pays 4 per thousand: the sweep and the supplier payment are both taxed, so COP 1,000,000,000 routed this way costs COP 8,000,000 instead of COP 4,000,000. Paying from the collection account or using same bank current accounts of one holder avoids the extra layer.

Step by step

Map cash flows and count how many taxable debits each peso goes through.
Keep treasury transfers between current accounts of the same company at the same bank where possible.
Collect the bank's annual GMF certificate to support the 50 percent deduction.
Budget the GMF as a cost of every payment run.

Common traps

The tax applies to each debit, so layered accounts multiply it.
Only half of the GMF is deductible; the other half is a permanent cost.
Payments to third parties from loan proceeds or securities settlement accounts are still taxed.

Sources

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