Are taxpayers under the Simple Taxation Regime entitled to claim tax-exempt income from pensions?

The DIAN, through Concept No. 005410 of April 28, 2025, concluded that pension income designated as exempt in paragraph 5 of Article 84 of Law 2381 of 2025 will not be taken into account for the purposes of determining the taxable base of the Simple Taxation Regime (RST).

In its ruling, the entity expressly stated that "the exemption regulated in paragraph 5 of Article 84 of Law 2381 of 2025, referring to income received from pensions, is not applicable for the purposes of determining the taxable base of the Simple Taxation Regime (SIMPLE), as this regime establishes a taxable base of ordinary and extraordinary gross annual income actually received, in accordance with Articles 904 and 908 of the Tax Statute."

In fact, the DIAN points out that the rules for determining the tax base in the Simple Taxation Regime (hereinafter RST) are special and that taxable income, both ordinary and extraordinary, is that which appears in Articles 904 and 908 of the E.T.

The DIAN reiterates that the Simple Regime has special rules for determining its tax base, which consists of total gross income received, without applying general exemptions provided for ordinary income tax.

In line with its argument, the tax administration cited Official Letter No. 019329 of August 5, 2019, highlighting that:

• The RST is optional and replaces income tax.
• Receiving a pension does not constitute a business activity, as required by Article 905 of the E.T. to belong to the regime.

Effects for taxpayers.

Individuals covered by the Simplified Regime who carry out commercial activities and also receive pension income must include this income in their taxable base, without the exemption provided for in the ordinary regime.

This means that, when opting for the RST, pension income loses its exempt status, thereby increasing the basis on which the tax is calculated.