The annual growth of the Collective Investment Funds in Colombia has been fast and profound. Year after year this tool has become an attractive investment option, increasing its investor base and managed assets.

An industry that grows at an average rate of 15% over the last 5 years can be called revolutionary. In addition, this tool has become the vehicle for individuals to make their savings profitable: according to the Superfinanciera, during 2018 the number of investments in the retail sector increased by 48%.The Financing Law involves the Collective Investment Funds in several articles, modifying or perpetuating their tax participation as follows:

  • It exempts from the VAT tax the commissions received by the trust companies and stockbrokers for the administration of said funds.
  • The disposition of resources for operations carried out by Collective Investment Funds is exempt from the Tax on Financial Movements.
  • The Collective Investment Funds managed by entities authorized by the Financial Superintendency, will be exempt from income and complementary taxes.
  • The realization of the income for the beneficiaries of the fund, is only deferred at the moment of the distribution of the profits, in the following cases:
    • If the shares of the fund are traded on a stock exchange supervised by the Superfinanciera. Or, in case:
    • No more than 50% of the fund is owned directly or indirectly by the same person, economically linked investment group or members of the same family up to a fourth degree of consanguinity.
    • That none of the effective beneficiaries of the fund, investment group or family group have control over its distributions.