Colombia: According to the Media, the Constitutional Court found unconstitutional the Special Decree creating the solidarity tax
As it has happened during the emergency, the national press announced a pivotal decision taken by the Colombia Constitutional Court regarding one of the most controversial measures of the Colombian government: the solidarity tax. Decree 568 created the mentioned tax for public officials and retirees who earn at least 10 million pesos per month (USD $2.632, approx.). Up to the 16th of August, the Court did not issue either a formal decision or a press release about this topic.
However, according to the media, the Court found the solidarity tax as unreasonably targeted at the public sector, which violates the generality of the tax principle, as well as the horizontal tax equity principle. For the Court, Decree 568 did not justify the decision of levying employees and retires from the public sector only, instead of every employee and retiree in the country with an income over the same amount (10 million pesos per month – USD $2.632, approx.).
As the decision has had effects since May, the solidarity tax paid will be considered as a payment in advance of the income tax of those taxpayers, according to the decision ruling.
For more information on these articles or any other issues involving labour and employment matters in Colombia, please contact Alejandro Castellanos (Partner) of López & Asociados at alejandro.castellanos@lopezasociados.net or visit www.lopezasociados.net
