Parafiscal Contribution Exemption Request Colombia (Ley 1429)

The Parafiscal Contribution Exemption Request Colombia (Solicitud de Exoneración de Aportes Parafiscales) is the formal document by which eligible employers process before the Unidad de Gestión Pensional y Parafiscales (UGPP) and the corresponding collection entities the exclusion from mandatory parafiscal contribution payments to the Servicio Nacional de Aprendizaje (SENA), the Instituto Colombiano de Bienestar Familiar (ICBF), and cajas de compensación familiar, under the tax benefits established in Ley 1429 de 2010 — the First Employment Law — and Article 114-1 of the Estatuto Tributario, incorporated by Ley 1607 de 2012 and modified by Ley 1819 de 2016.

In Colombia, parafiscal contributions are mandatory charges that employers must assess monthly on their payroll. The SENA receives 2% of total payroll to finance technical and technology training programs; the ICBF receives 3% for child and family protection; and cajas de compensación familiar receive 4% to finance housing subsidies, recreation, and social services for workers. For employers with ten or more workers earning less than ten monthly minimum legal wages (SMMLV), Article 114-1 ET establishes exemption from SENA and ICBF contributions, provided the employer is a contributor to income tax.

Ley 1429 de 2010, in Article 5, additionally granted progressive payment benefits for parafiscals to small companies incorporated after its entry into force: during the first two years of operation they are 100% exempt from contributions; from years three through five they pay graduated percentages (25%, 50%, 75%) until reaching 100% in the sixth year. This benefit applies to companies with fewer than ten employees or total assets below 500 SMMLV, registered in the Registro Único Empresarial y Social (RUES) of the chambers of commerce.

The document instruments this request before the DIAN for income tax purposes (when the exemption is linked to Article 114-1 ET), before the UGPP for verification of correct assessment, and before the PILA (Planilla Integrada de Liquidación de Aportes) information operators — such as SOI, Mi Planilla, or ARUS — to configure the correct contributor type. Correct filing avoids objections, interest charges, and inaccuracy penalties from the UGPP, which has broad audit powers under Article 178 of Ley 1607 de 2012.

The Parafiscal Contribution Exemption Request Colombia is necessary in Colombia in the following legal and business scenarios.

New companies under Ley 1429 de 2010: Every small company incorporated after December 29, 2010, with fewer than ten workers or assets below 500 SMMLV, must certify its condition before the PILA operators and the UGPP to apply the progressivity benefits. Without filing this request, the PILA system will automatically assess full rates and the company will lose the Ley 1429 benefits.

Employers with low-wage workers: When the employer has ten or more workers whose income does not exceed ten SMMLV, the exemption from SENA and ICBF operates by operation of law under Article 114-1 ET, but it must be reported to PILA operators for correct configuration of the payroll. Failure to configure generates assessment errors and UGPP objections.

Changes in payroll composition: When a company that previously paid full rates reduces its workforce below ten workers or modifies staff salaries, it must update its condition before the corresponding operators.

UGPP audits and inspections: The UGPP may require documentary support of the exemption. A correctly prepared and filed request constitutes the documentary backup against any information request or official assessment action.

Transition to the SIMPLE regime: Companies that enter the SIMPLE Tax Regime retain the parafiscal exemption under Article 903 ET, as modified by Ley 2010 de 2019, making it necessary to document the request in the context of the new unified tax obligation.

The Parafiscal Contribution Exemption Request Colombia must contain the following elements to be valid and effective before the UGPP, DIAN, and PILA operators.

Employer identification: Full legal name, NIT with verification digit, notification address, email, and phone of the legal representative. For individual employers, national ID and full name.

Regulatory basis: Express citation of Article 114-1 of the Estatuto Tributario (exemption from SENA/ICBF for workers with salary below 10 SMMLV), Article 5 of Ley 1429 de 2010 (progressivity for new small companies), or Article 903 of the Estatuto Tributario (SIMPLE), depending on the applicable benefit. Decreto 1625 de 2016 — the single regulatory decree on tax matters — compiles the regulatory rules for both benefits.

Accreditation of eligibility condition: Certificate of Existence and Legal Representation from the Cámara de Comercio with incorporation date; declaration of the number of linked workers; statement of salary amounts paid in relation to the applicable SMMLV; and, for Ley 1429, number of years of operation to determine the applicable progressivity percentage.

Exemption period requested: Month or PILA assessment period to which the exemption applies, indicating the PILA operator used (SOI, Mi Planilla, ARUS, Enlace Operativo, or other).

Declaration of compliance with obligations: Statement that the employer is current on payments to the Sistema General de Seguridad Social (health, pension, ARL) under Article 50 of Ley 789 de 2002.

Signatures and power of attorney: Signature of legal representative or attorney. If acting through an attorney, a special power of attorney under Article 69 of the CPACA — Ley 1437 de 2011 — must be attached.

List of attached documents: Copy of updated RUT, certificate of existence and representation, payroll for the period, and PILA payment receipts for the prior period. The forms-legal.com platform provides this model adapted to current Colombian regulations, with a structure compatible with UGPP and DIAN requirements.