Special Regime for companies in the Creative Industries (Orange Economy) sector
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100% income tax exemption during the first seven years for new companies in the sector.
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The investment must amount to USD$50,000 within three years, create at least 3 employees related with R&D and have the approval of the Ministry of Culture.
Large-Scale Investment Regime
- Special income tax rate of 27% for up to 20 years, with the possibility of entering into a legal stability agreement.
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The investment must amount to USD$300 million within five years, create more than 250 direct jobs and have the approval of the tax authorities.
Agroindustry
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100% income tax exemption during the first seven years for companies that invest at least USD$283,000.
Free Trade Zones (FTZs)
Companies that locate in FTZs have the following benefits:
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One Income tax rate of 20%.
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No customs duties (VAT and tariff) are caused or paid on goods that are introduced to the Free Trade Zone.
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Export from the Free Trade Zone to third countries.
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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:
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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 the acquisition of capital assets with global tariff charge over the income tax
- Up to 200% Deduction of disabled employees’ salaries over the income tax
- Income tax exemption for companies that carry out construction and financing of social housing (VIS)
- Special rate of 9% rent Income Tax tariff in construction and repair of hotels in municipalities of less than 200, 000 inhabitants for 20 years
- Publishing companies exempt from income tax, in addition to sales excluded from the VAT on scientific or cultural material
- Exemption of income tax for companies that provide the river transport services until 2032
- Additional investments in hydrocarbons and mining will be Revenues Not Deemed Income for Tax Purposes neither occasional gain
- Exemption of income in the use of forest plantations until 2036
- Renewable energy sales may be tax exempt until 2032, or otherwise deduction of 150% of the investment on income tax
Local Tax Exemptions
Goods and services produced in Bogota for export are exempt from the Value Added Tax (19%) and local Industry and Commerce Tax (1.14% of gross revenues). Surrounding municipalities offer this tax exemption solely on the basis of job creation and/or investment.
Updated: (mm/dd/yyyy) 12.01.2021