From 1 Jan 2019, pension contributions to individual accounts in Colombia’s mandatory pension system are tax exempt up to 25% (salary minus employee contributions), capped at 2,500 tax units (UVT). In the event of withdrawal for purposes other than pension, contributions made after 2013 are taxed at 35%.
The UVT measures limits and thresholds previously set in absolute numbers and is adjusted annually by decree. For 2019, the UVT is equivalent to COP $34,270.
- Finance Law and Other Resources (Spanish) (Government of Colombia, 28 Dec 2018)