Colombian Stock Exchange jumps up

ColombiaBoard says on Dec 16, 2006, 10:23:

End Year Rally There's an end year rally. Many stockholders and investors are taking positions because according the the newest tax law, all investments in stocks won't count when applying the patrimony tax for 2006 so everybody who has cash is running to buy stocks.

If you own real estate, CDs, whatever, it'll all be counted as patrimony except stocks, so, obviously everybody is investing as much as they can in stocks.

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goin_south says on Dec 16, 2006, 13:10:

a brief explanation.... CB what is 'patrimony tax'?

“ I would rather be a conservative nut job rather than a liberal with no nuts and no job.”

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aztec says on Dec 16, 2006, 16:00:

what is 'patrimony tax'? I am waiting for that one. Now don't fudge the answer. Give us the full details.

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ColombiaBoard says on Dec 16, 2006, 18:38:

Ok In Colombia they want to tax not only income but also your patrimony, that means, whatever you own, land, houses, condos, cash, etc. But, the big exemption is stocks, so, let's say you own one billion pesos and it's 40% real estate, 30% cash investments and 30% stocks, that 30% won't count when calculating the tax you have to pay .

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aztec says on Dec 16, 2006, 18:40:

How about pensions? and out of country income?

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Miguel_Clavo says on Dec 16, 2006, 20:25:

Aztec, hopefully that will be secured in the US..you already have to pay taxes on pensions in the US, so they should not tax it in Colombia if you bring it there.....or so my tax guy says....and i believe there is a really high minimum tax structure where unless you make alot of money, you probably wont be paying anything, assuming you are paying US taxes as well....

Just my opinion...

Miguel_Clavo.....Colombia es pasión!

"F.A.R.C..S.U.C.K.S"

"I would rather die living life, than to live a dying life."........ Oh, and my PM is always ON. Great Bumper Sticker: "Home of the Free, Because of the Brave"

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Miguel_Clavo says on Dec 16, 2006, 21:36:

Sounds like +/- 80 million excluding stocks! Just my opinion...

Miguel_Clavo.....Colombia es pasión!

"F.A.R.C..S.U.C.K.S"

"I would rather die living life, than to live a dying life."........ Oh, and my PM is always ON. Great Bumper Sticker: "Home of the Free, Because of the Brave"

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aztec says on Dec 17, 2006, 02:22:

Doesn't take much... ...to get to the 80 million when you add in the apartment/house.

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robi666 says on Dec 17, 2006, 06:18:

Ok... big confusion...1) Ok... big confusion...
1) The patrimony tax is NOT the income tax
2) You do not have to declare income if you assets do not exceed 86 millions (I do not remember well... it was 80 millions last year)
3) Your income will be assumed to be a least the 6% (I think they are changing this to 3%) of your assets. Last year you have to pay NOTHING if you had less than 380 millions of pesos in assets (look at the tax table)
Artículo 188. Base y porcentaje de renta presuntiva. Para efectos del impuesto sobre la renta, se presume que la renta líquida del contribuyente no es inferior al tres por ciento (3%) de su patrimonio líquido, en el último día del ejercicio gravable inmediatamente anterior.
4) First house will not be counted for patrimony tax for the first 220 millions
Artículo 295. Base gravable. La base imponible del impuesto al patrimonio está constituida por el valor del patrimonio líquido del contribuyente poseído el 1º de enero del año 2007, determinado conforme lo previsto en el Título II del Libro I de este Estatuto, excluyendo el valor patrimonial neto de las acciones o aportes poseídos en sociedades nacionales, así como los primeros doscientos veinte millones de pesos ($ 220.000.000) del valor de la casa o apartamento de habitación.
5) You'll pay NOTHING if you have less than 3 billions of pesos
Hecho generador. El impuesto a que se refiere el artículo anterior se genera por la posesión de riqueza a 1º de enero del año 2007, cuyo valor sea igual o superior a tres mil millones de pesos ($ 3.000.000.000).”
I am not an expert, I am an engineer, but I like to read... I can be wrong, beware!

Better to burn out than to fade away.

"I am a citizen of the most beautiful nation on earth. A nation whose laws are harsh yet simple, a nation that never cheats, which is immense and without borders, where life is lived in the present."

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robi666 says on Dec 17, 2006, 06:21:

So ColombianBoard, if you have 1 billions pesos, you do not care about patrimony tax... anyway, the one who has got 1 billion pesos will not move the stock market, he is mr. None in USA or in Colombia.. so you're right anyway.
Better to burn out than to fade away.

"I am a citizen of the most beautiful nation on earth. A nation whose laws are harsh yet simple, a nation that never cheats, which is immense and without borders, where life is lived in the present."

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