The Voluntary Pension Funds, created as a legal figure in 1987 under Decree 2513, and promoted by Law 100 of 1993, have become a strategic ally of Colombian organizations when it comes to retaining talent and optimizing the payment of their taxes. .
Also known as business or institutional plans, Organizations can allocate different amounts for one or several collaborators, this amount can be converted into tax savings.
Currently, and under the 2023 tax framework, Companies can allocate up to 3,800 Tax Value Units (UVT) per employee, that is, $161,165,600 COP.
For the sponsor, contributing this amount to one or several collaborators, could represent a saving of 35% of the Income Tax for the organizations.
Lisandro López, financial and tax advisor of Accion Fiduciaria, assures that, with this contribution on behalf of the collaborators, “companies become their ally to save, because through this the collaborators will be able to increase their pension assets and/or facilitate the purchase of housing”.
In addition to the above, López confirms that voluntary pension contributions are totally exempt from tax on financial movements, and that income tax will not have to be paid on the income obtained, if the withdrawal is made by fulfilling one of the following requirements :
• After ten years have elapsed.
• When they are used to purchase a home.
• Once the requirements to retire are met (in the public or private regime).
López, emphasizes that “at all times, according to Law 100, the conditions to qualify as a pensioner must be taken into account, since in the public regime you must comply with age and weeks, while in the private one you will have to verify that you have reached a minimum savings ceiling.
It is worth mentioning that companies may carry out this type of voluntary contribution on behalf of their collaborators in two ways: through payroll as a bonus and through a conditional business plan.
In cases where it is done through payroll, the employee will have to pay withholding tax and rent. If it is done through a business plan, this money will not be part of your assets until you meet the agreed conditions, and once you can use it, it will be income-free as long as it is used under the three conditions mentioned above. .
This translates into an incentive to retain talent and increase productivity, in addition to companies, They will have a way to lower taxes.
López, emphasizes that these Voluntary Funds are not only for organizations, since anyone can start this savings at the time they want, since to open an order, only the minimum investment amount (opening) must be paid. and contributions may vary from month to month.
“In addition, these funds are a very good savings and investment alternative for people who are starting their working life, since they allow them to accumulate capital that can be used to improve the quality of life, or to be of great support in old age,” adds Lopez.