The tax reform document was filed this Monday, hours after Gustavo Petro took office as the new head of state, in includes a specific point that would touch those who earn higher pensions in Colombia.
Those affected are those who earn more than 10 million pesos of pension, which will have a significant reduction in exempt income (that which is free of income tax) and it will go from 12,000 UVT (Tax Value Unit) per year to 1,790.
“It is proposed to reduce the income exempt from pensions from 12,000 UVT to 1,790 UVT per year, recognizing that, under the Average Premium Regime (RPM) and the Individual Savings with Solidarity Regime (RAIS), the maximum regulated monthly pension is 25 SMMLV, which means that, in practice, all pensions have a 100% exempt treatment in the current tax statute”, details the reform document.
(See also: Contracts for the provision of services, objective of the Petro government: changes will come)
Tax reform: point that would affect some pensioners in Colombia
The new Government ensures that with this proposal the protection of pension income for the elderly is guaranteed and their “inability to generate other types of income” is recognized.
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“It is necessary to highlight that this limit takes into account the fact that no pensioner with an allowance of 10 million monthly or less contributes to the IRPN (income tax on natural persons), the abovestarting from the fact that he only receives income for this concept”, details the document.
According to the reform, only 0.2% of pensioners will contribute to this tax.