Access to the Incentive for the Creation and Retention of New Formal Jobs

Procedure to Access the Incentive for the Creation and Retention of New Formal Jobs

• Employers must submit the following documents to the financial institution or credit union where they hold their deposit account. These entities will exclusively carry out the verification process.

• The incentive beneficiary must follow this procedure for each application cycle, for each month they are applying. · This procedure will allow the beneficiary to receive a monthly incentive for each additional worker, and they may receive it up to twenty-four (24) times for each new job created.

• Financial institutions and credit unions must verify that the deposit account belongs to the applicant and is active. · Financial institutions and credit unions must inform the Special Administrative Unit for Pension Management and Parafiscal Contributions of Social Protection (UGPP) upon receipt of the documents.

• By applying, the beneficiary accepts the conditions under which the incentive is granted. This application does not guarantee the right to receive the Incentive for the Creation and Retention of New Formal Jobs.

• If the incentive is received without meeting the established requirements, and the beneficiary fails to inform the relevant authority or receives it fraudulently, they will be subject to disciplinary, fiscal, and criminal liability. The UGPP will initiate a coercive collection process and apply the procedures and sanctions established in the Tax Code for improper refunds.

The documents and some considerations established by Decree 0533 of 2024 for obtaining the incentive are as follows:

1. The legal representative or the individual employer must sign a request expressing their intent to benefit from the Incentive for the Creation and Retention of New Formal Jobs.

2. A certification signed by the statutory auditor or public accountant (in cases where the company is not required to have a statutory auditor), stating:

   • That the employees for whom the incentive is granted received their salaries for the months prior to the application.

   • Where applicable, indicating if employer substitution processes took place, starting from May 2023.

   • That social security payments were made for May 2023 for all employees employed by the employer at that time.

3. A copy of the Single Tax Registry (RUT), issued within six (6) months prior to the application.