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Tax CO

GMF / 4x1000

Also known as: Gravamen al Movimiento Financiero, 4 por mil, 4x1000

Definition

GMF (Gravamen al Movimiento Financiero), known as 4×1000, is Colombia's 0.4% tax on every bank debit. The bank withholds it automatically.

LATAM context

The 4×1000 applies to most bank transactions in Colombia: withdrawals, transfers, automatic payments. Savings accounts are exempt up to a certain amount. It matters for any business operating in Colombia because it hits actual cash flow.

Concrete example

A 1,000,000 COP transfer generates 4,000 COP of GMF, withheld automatically. On the statement it shows up as "CARGO 4X1000".

How it shows up on your bank statement

The GMF appears as its own charge tied to withdrawals and transfers, calculated on the transaction amount. Like Peru's ITF, it's a lot of small lines: adding them up explains a good part of the gap between what the account holder thinks they spent and the actual balance.

How does finO$ handle this?

finO$ identifies and separates the GMF on Colombian statements for accurate reconciliation and correct net cash-flow calculation.

Related terms

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Frequently asked questions about GMF / 4x1000

What is the 4x1000-exempt account?

Regulation allows one account per holder to be marked exempt up to a monthly withdrawal cap. If you have several accounts, only one can carry the exemption, and transactions on the rest do trigger the tax.

Does the sender or the receiver pay the 4x1000?

Whoever performs the taxed transaction pays it, usually the one withdrawing or transferring. That's why you won't find the matching charge on the recipient's statement for that same transfer.