X

Legal Bulletin

logo

DECREE OF THE MINISTRY OF FINANCE

Tax treatment of the voluntary contributions made to voluntary pension funds and private insurance pensions

The voluntary contributions made by employees to voluntary pension funds or to private insurance pensions shall have a contingent withholding tax of 7%

 

The Decree 2250 of 2017 establishes the tax treatment of the voluntary contributions to voluntary pension funds, private insurance pensions and/or the so-called “Ahorro para el Fomento de la Construcción-AFC”.

The fund management companies shall register a contingent withholding tax of seven percent (7%) in the event that the employees make contributions directly to the voluntary pension funds or private insurance pensions and/or the so-called “Ahorro para el Fomento de la Construcción-AFC