BRIEF HISTORY OF TAXES IN COLOMBIA - HISTORY - 2025

The history of taxes in Colombia begins with the colonization of the Spanish conquerors, who sent gold, precious stones and food to the Spanish monarchs as a form of taxation.

The tax is an obligatory tribute that the citizens of a country make to their government, in such a way that it obtains the budgetary income necessary to carry out its functions and satisfy the basic needs of education, food, security and health of all inhabitants.

Tributes have existed throughout the entire history of mankind and arise with offerings to the gods, the financing of wars and piracy.

The National Tax and Customs Directorate (DIAN) is in charge of monitoring compliance with the regulations regarding taxes in Colombia.

Among the main taxes that we find today are; income tax; the value added tax, the wealth tax; the tax on financial transactions; and the consumption tax.

Let's see its history:

Income tax

It is a tax that depends on the income of individuals or companies, is calculated on net income and is canceled every year.

This tax in Colombia has been applied since 1918 and its last reform was made in 2016, presenting a surcharge of 6% for 2017 and 4% for 2018 for all taxpayers with income greater than 800 million pesos.

Value Added Tax (VAT)

It applies to consumers for the use of a service or for the acquisition of a good.

It was implemented in 1963 aimed at manufacturing activity. In 1983 it welcomed retailers and consumers, then in 1992 it expanded to hotels and restaurants. This tax is paid bimonthly.

Wealth tax

This tax has changed names, first it was called a tax for democratic security, then it became a wealth tax and today it is called a wealth tax.

It was initially created in 2002 as a wealth tax and in 2014 it was transformed into a wealth tax.

It is canceled between the years 2015 and 2018 only if as of January 1, 2015 there was an equity after deductions for an amount greater than $ 1 billion pesos.

Tax on financial transactions (GMF)

The tax on financial movements was born on a temporary basis in 1998, but in 2006 it was declared as a permanent tax, since its participation in tax revenues shows a very considerable figure.

It is canceled at the time the financial transaction is made.

Consumption tax

It is applied to the final consumer for the provision of a service, for the sale of a good or for an import.

It is created with the law 1607 of the year 2012. It is caused at the time of the transaction, but the form of presentation is bimonthly

Taxes in Colombia are born from a precept of the National Constitution, which states that all Colombians sheltered under the concepts of justice and equity, must contribute with the investments and expenses that the government executes.

References

1. Upgrade. (2009). Retrieved from actualicese.com
2. Junguito, R. (2012). LR THE REPUBLIC. Obtained from larepublica.co
3. Latorre, AG (1995). Time. Obtained from eltiempo.com
4. PROCOLOMBIA. (sf). Obtained from investincolombia.com.co
5. Rodríguez, JR (2009). tax magazine. Obtained from legal.legis.com.co.