Eliminating the Simple Regime Is a Mistake

Tax attorney Juan Camilo Riveira published a column in El Heraldo criticizing the measure to eliminate the Simple Taxation Regime (RST) in the tax reform package ratified by Colombia's national government. Mr. Riveira explains that under the RST taxpayers are taxed on gross income – without deducting costs and expenses – at rates much below the current income rate of 35 percent. Highlighting that this type of system incentivizes the creation of small businesses and removes an administrative burden from taxpayers, the author asserts its elimination would be a grave mistake.

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