Colombia to Levy Corporate ‘Wealth Tax’ to Pay for Flood Damage

Colombia’s government is planning a ‘wealth tax’ on corporate assets to fund the rebuilding a region devastated by heavy flooding this year.

The emergency decree would exclude small and medium-sized businesses, applying only to companies with net assets of more than about 10 billion pesos ($2.7 million), Finance Minister Germán Ávila said during a televised cabinet meeting.

These companies would pay a one-off rate of 0.6% on assets beyond that threshold, rising to 1.2% on net assets above 30 billion pesos, according to the proposal.

Under Colombia’s constitution, the government must declare a state of economic emergency and issue ...