00:00Hey, are they now going to charge Withholding Tax on short-term transactions?
00:04Wait, with the second attempt by the Mayor's Office of Bogotá to present
00:08There's a lot to explain about tax reform. This is the ABCs of the draft agreement so that
00:14You know how much it will affect your wallet. In Bogotá, the Council is discussing the...
00:20Tax reform 2.0, presented by Mayor Galán after the failed attempt in 2025, and which
00:27He ended up withdrawing after questioning from the Council. This time they are seeking approval through
00:33of an attractive project: modernizing the city's street lighting. But why present
00:41Now, a tax reform? As we reported in El Espectador, the project would respond to the
00:47financial pressure that the district says it has to accommodate the expenses of its 2026 budget,
00:54This deficit, they explained, is a result of the minimum wage increase. This shortfall has primarily affected the sector of
01:01mobility and therefore the need to maintain the pace of the works. With that context clear,
01:08The Ministry of Finance projects that with this new tax reform it will collect 1.2
01:14millions of pesos with which it intends to fulfill its main objective, which is that in two years all the
01:2020,000 streetlights in Bogotá will be equipped with LED technology and remotely managed. This modernization,
01:27They added that it would facilitate the installation of security cameras and a flood monitoring system.
01:34and fires. To achieve this revenue, here comes the chapter on how it will affect your wallet. The reform
01:41It first proposes surcharges on citizens through property taxes. Those in socioeconomic levels 4, 5, and 6 could be affected.
01:48pay between 132,000 and 348,000 pesos per year, while those in socioeconomic levels 1, 2, and 3 would be exempt.
01:57of this
01:58surcharge. Unless, of course, its property assessment exceeds one billion pesos. The measure
02:04It would also apply to commercial, industrial, financial, and institutional properties with tariffs
02:12differentiated. Although this is the heart of the proposal, the tax reform also proposes
02:18modifications to the rates of the industry and commerce tax (ICA), for example such as
02:24increase to the financial sector, the trade of alcoholic beverages and tobacco, and for marketing
02:30of vehicles. And what about short-term transactions? Finance Secretary Ana María Cadena responded
02:37This payment system does not and will not have withholding tax, but to avoid confusion such as
02:44This is how they were generated; he announced that they will adjust the wording of this article. Finally,
02:50The initiative also includes a package of tax relief measures, among which the following stand out:
02:5550% discount on interest and penalties for those who pay the full principal
03:02owed before December 18 of this year. It is also proposed to exclude it from the ICA withholding.
03:09through debit and credit card payments to small merchants. The proposal of the
03:15Tax reform is already being discussed in the Council, with strong disagreements among some
03:20council members. If the debates in the Finance Committee and then in plenary session are passed, the modifications and
03:27Tax relief measures would come into effect in 2027. Let us know what you think in the comments.
03:34Tax reform 2.0 for Bogotá. Learn more about this project with the analysis of
03:41councilors and experts in the Bogotá section of El Espectador.
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