With the start of the new 2026 tax year, taxpayers who currently belong to the Simple Taxation Regime (RST) must verify that they continue to meet the legal requirements to maintain their affiliation with this tax regime. Similarly, those who wish to benefit from the advantages of the simple regime have a unique opportunity until the last business day of February 2026 to register (if you are registering for the first time in the Single Tax Registry (RUT), you can do so at any time). Translated with DeepL.com (free version)  

 

Why is it important to do this review now? 

The Simple Taxation Regime is a special benefit for small and medium-sized businesses and individuals who carry out business activities but do not have sufficient deductible costs and expenses. This regime significantly simplifies their tax obligations and provides them with lower income tax rates, without allowing the deduction of costs and expenses to calculate the tax.

However, like any other tax benefit, it has specific requirements that must be met on an ongoing basis. If during the 2025 tax year your company exceeded any of these limits or you failed to comply with the required obligations, you must report this to the Administration and, if applicable, request a change of regime before it is too late. 
 

Requirements to remain in or register for the 2026 Simple Regime

In order to maintain your affiliation with the RST or, where applicable, register for it, you must meet the following requirements: 

 

1. Nature of the taxpayer:

  • Be a natural person engaged in business activity (including liberal professionals such as doctors, accountants, and lawyers), or
  • Be a legal entity whose partners or shareholders are natural persons residing in Colombia.

2. Income limit:

  • Have earned gross income equal to or less than 100,000 UVT (approximately $5,237,400,000 for 2026) in the previous tax year.

3. Residence: 

  • Be a resident of Colombia (applies to individuals). 

4. Income consolidation - Multiple companies owned by the same partner: 

  • If you own one or more companies or participate in several companies registered with the RST, your income must be reviewed on a consolidated basis and in proportion to your participation in each of them. This requirement is especially important if you are a partner or entrepreneur with multiple businesses. 
     

5. Income consolidation - Participation in other companies not registered in the RST: 

  • If you have a stake of more than 10% in one or more companies that are NOT registered in the Simple Regime, your income is also consolidated in that proportion to verify that it does not exceed the limit of 100,000 UVT. 
     

6. Compliance with obligations:  

  • Be up to date with all your national and local tax obligations.
  • Be up to date with your contributions to the Comprehensive Social Security System.
  • Be registered with the RUT.
  • Have all the electronic compliance mechanisms in place (electronic signature, electronic invoice, or equivalent electronic document).
     

Who is NOT eligible for the Simple Regime?

There are situations that prevent individuals from remaining in or registering for this regime. The following taxpayers are excluded from the RST: 

  • Foreign legal entities.
  • Individuals without residence in Colombia.
  • Individuals whose activity constitutes an employment or legal regulatory relationship (employees).
  • Companies whose partners include foreign legal entities.
  • Financial institutions.
  • Legal entities or individuals that carry out activities that generate passive or non-operating income, when this represents 20% or more of total income, except for legal exceptions, microcredit activities, activities related to electrical energy, factoring activities, among others.

 

Crucial deadline: February is your month 

For the 2026 tax year, you have until the last business day of February (February 28, 2026) to apply for registration in the RST. This is a non-extendable deadline set by the DIAN. After this date, you will not be able to register until next year (unless it is your first time registering with the RUT). If you were already registered and need to leave the simplified regime, you have until the last business day of January to notify them, otherwise you will be required to remain in the regime for the entire year.

 

Advantages of being in the Simplified Regime

Unlike the Ordinary Regime, the RST offers: 

  • A single form for declaring and paying different taxes (income tax, industry and commerce tax, consumption tax).
  • Significant reduction in reporting and documentation obligations.
  • Administrative simplification: submit a consolidated annual return for the aforementioned taxes and bimonthly tax prepayments.
  • Improved cash flow thanks to lower rates compared to the ordinary regime.
     

 What should you do now? 

We recommend: 

  1. Verify 2025 income: Check that it remains below the established limits (100,000 UVT).
  2. Confirm compliance with obligations: Make sure you are up to date with your tax and social security obligations.
  3. Evaluate your intention: Decide whether you want to maintain the regime or change it.
  4. Act before the deadline: If you need to make changes to your tax structure, request registration or update your RUT with the DIAN within the established deadline. 
     

At RSM, we are ready to help you 

At RSM Colombia, we have a team specializing in taxation that can advise you on this critical assessment.

Our experts can help you:

  • Check whether you meet all the RST requirements for 2026.
  • Analyze the tax benefits of your current situation.
  • Manage your procedures with the DIAN in a timely and efficient manner.
  • Design the most convenient tax structure for your business.   

Contactos Clave
Sergio Andrés Viveros Rubiano
PCS and Tax Lead Partner - International Contact Partner
View profile
Bogotá - Colombia RSM Tax
+ 57 320 4915013