1.Voluntary Contributions to Mandatory Individual Accounts
According to article 31 of Law 2010 of 2019, voluntary contributions to the Mandatory Individual Accounts of the system known as RAIS, will not be taken as income, as long as it does not exceed the limit of 25% of the employees anual income or the amount of 2500 UVTs. This, ratifies the explanation of the Colombian Tax Agency (DIAN) made by the Unified Concept 1912 of july 19th, 2019. Nevertheless if the voluntary contributions are not used for a better pension, the contributions will be held as income and a 35% of the amount will be withold by the pension fund.
2.Electronic Legal Notice on administrative investigations from the UGPP
As provided by articles 103, 104 and 105 of the Law, legal notice on administrative investigations from the UGPP over social security contributions and contributions to SENA, ICBF and the Family Compensation Fund, will be due and preffered through data messages via e-mail. The notice will be taken as of the day the message was sent and if the content of the e-mail cannot be visualized, it is mandatory to advice the UGPP of said situation, in order for a new e-mail to be sent.
3.Settlement of Disputes with the UGPPP 3
Articles 118 and 119 of Law 2010 of 2019 allow the UGPP to settle the disputes over interests and sanctions of the administrative investigations of its competence. The settlement may forgive up to 100% of the interests and sanctions, but no settlement may be done over the interests on pension contributions. For these purposes, the system already provides the “Planilla O”. Likewise, the administrative acts that include sanctions and interests, may be revoked by the UGPP within the faculties granted by the Law of Economic Growth.
4.Economic Sanctions on the late provision of information to the UGPP
Sanctions on the late provision of information to the UGPP when the entity asks for inforation, will be up to 15000 UVTs according to the amount of months of delay on provisioning the complete information, as follows:
| |
---|
Hasta 1 | 30 |
Hasta 2 | 90 |
Hasta 3 | 240 |
Hasta 4 | 450 |
Hasta 5 | 750 |
Hasta 6 | 1200 |
Hasta 7 | 1950 |
Hasta 8 | 3150 |
Hasta 9 | 4800 |
Hasta 10 | 7200 |
Hasta 11 | 10500 |
A partir de 12 | 15000 |
Likewise, sanctions may be reduced by the UGPP, when the total information is given and depending on the income that the Company reports to the Colombian Tax Agency (DIAN) or the income determined by the UGPP when no declaration of tax is done by the enterprise. Nevertheless, decision on the diminishing of the sanction is at will from the UGPP.
5.Assumption of Expenses on Independent Workers
According to article 139 of the Law, the UGPP shall regulate a scheme to assume expenses of independent workers, in order for them to determine whether or not they have an obligation to pay contributions to social security. As ordered by the Law, UGPP issued Resolution 209 of 2020 which establishes the assumption of expenses on the different economic activities executed by independent workers.
6.Monthly contribution to the Health Insurance System by pensioners
As of 2020 the monthly contribution to the Health insurance system due by pensioners will be reduced, as follows:
Years 2020 and 2021:
Monthly Income | Contribution |
---|
1 Minimum Wage (MW) | 8% |
1 to 2 MW | 10% |
2 to 5 MW | 12% |
5 to 8 MW | 12% |
More than 8 MW | 12% |
2022 and following years:
Monthly Income | Contribution |
---|
1 Minimum Wage (MW) | 4% |
1 to 2 MW | 10% |
2 to 5 MW | 12% |
5 to 8 MW | 12% |
More than 8 MW | 12% |
7.Witholding Tax Rates
Witholding Tax Rates were updates by the Law as seen in the following chart:
Income in UVTs | Rate | Formula |
From | Until |
>0 | 95 | 0% | 0 |
>95 | 150 | 19% | (Income in UVT -95UVT) * 19% |
>150 | 360 | 28% | (Income in UVT -150UVT) * 28% + 10 UVT |
>360 | 640 | 33% | (Income in UVT -360UVT) * 33% + 69UVT |
>640 | 945 | 35% | (Income in UVT -640UVT) * 35% + 162UVT |
>945 | 2300 | 37% | (Income in UVT -945UVT) * 37%+ 268 UVT |
>2300 | En adelante | 39% | (Income in UVT -2300UVT) * 39% + 770 UVT |
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