Resolution No. 532 of 2024 UGPP: Establishing a Cost Assumption Scheme for Self-employed Workers and Those Who Enter Contracts

Recently, the Special Administrative Unit of Pension Management and Social Security Contributions (“UGPP” by its initials in Spanish) issued Resolution 532 of 2024, establishing a cost assumption scheme for self-employed workers and those who enter contracts other than personal service provision contracts, involving subcontracting and/or the purchase of supplies or expenses, based on the economic activities listed in the International Standard Industrial Classification (CIIU). This scheme also applies to cases where the economic activity is public motor freight transport by road, as a method to establish the base contribution income (IBC).

To apply the presumed cost coefficient, the obligated party must refer to the section of economic activities generating their monthly gross income during the period they received it and apply the corresponding cost percentage.

If the income comes from multiple economic activities, the corresponding cost percentage for each activity must be applied.
Specifically, for the public motor freight transport sector by road, a general cost presumption scheme was defined for self-employed workers and for employers who have verified social security contributions for the drivers they have employed. They can deduct the cost percentage established in the resolution, based on the range of gross income and the number of drivers.

As an exception, a different cost percentage can be set, provided supporting documents are available and requirements established in Article 107 of the Tax Code are met without exceeding the values included in the income tax return.

This resolution will apply from November 1, 2024.