As part of reforms to make business conditions more attractive, Colombia and Bogota offer attractive incentives for investment, including:
Free Trade Zones (FTZs)
Companies that locate in FTZs have the following benefits:
- One Income tax rate of 20%.
- No customs duties (VAT and tariff) are caused or paid on goods that are introduced to the Free Trade Zone.
- Export from the Free Trade Zone to third countries.
- Goods of foreign origin introduced into the free trade zone may remain in them indefinitely.
- VAT exemption for raw materials, parts, inputs and finished goods sold from the national customs territory to industrial users of goods or services in Zona Franca or between these.
Single Company FTZs
Subject to specific investment and employment targets, investors can set up FTZs on their premises, anywhere in the country.
Income Tax Deductions
The Colombian tax code has several additional deductions from corporate income tax, including:
- Discount of 25% of the investment in environmental projects (management and improvement) over the income tax.
- Up to 100% deduction on R&D and innovation projects over the income tax Discount of 25% of the investment on R&D or innovation over the income tax.
- Up to 100% deduction on value paid for VAT in acquisition of capital assets with global tariff charge over the income tax.
- Up to 200% Deduction of disabled employees’ salaries over the income tax.
Local Tax Exemptions
Goods and services produced in Bogota for export are exempt from the local Industry and Commerce Tax (1.14% of gross sales) and and aggregated value tax (19% of gross sales). Surrounding municipalities offer this tax exemption solely on the basis of job creation and/or investment.
Updated (mm/dd/yyyy): 03.29.2017