Colombia implemented a new wealth tax that affects taxpayers with a net equity equal to or greater than approximately US$430,000.
Colombia recently implemented a new wealth tax that affects taxpayers with a net equity as of January 1, 2015 equal to or greater than COP $1 billion (approximately US$430,000). This change could be of interest to Canadian clients with investments in the country. In particular, taxpayers subject to the tax include:
For individuals, the wealth tax accrues on net equity as of January 1, 2015, 2016, 2017 and 2018.
For foreign entities, the wealth tax accrues on net equity as of January 1, 2015, 2016, and 2017.
Foreign corporations and entities must file a wealth tax return (regardless of wealth tax liability) if their net equity in Colombia is equal to or greater than COP$1 billion, including:
The first wealth tax payment date and filing deadline is expected in May 2015.
In calculating the taxable base, the net worth value of the following assets can be excluded:
For non-resident individuals and foreign entities with PEs or branches within Colombia, the taxable base will correspond to the equity attributed to the PE or branch.
The tax reform also includes provisions that:
For more information, contact your KPMG adviser.
Information is current to January 20, 2015. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.
For more information, contact KPMG's National Tax Centre at 416.777.8500