Sector specific benefits
Colombia offers income tax exemptions in the sectors mentioned below. This benefit allows companies to pay 0%, instead of the general rate of 34%.
- New forestry and sawmills plantations.
- Income associated to Social Housing (VIS for its acronym in Spanish) and Housing of Priority Social Interest (VIP for its acronym in Spanish).
- Sale of electric power generated with wind power, biomass, solar, geothermal or generated by the sea movement.
- River transportation services in low draft vessels.
Additionally the following activities will be taxed with 9% of income tax instead of the general tariff of 34%:
- Hotel services provided in new hotels built between 2003 and December 31, 2017, for a period of 30 years.
- Ecotourism services certified by the Ministry of Environment.
- Use of new investment in late yield crops in cocoa, rubber, palm oil, citric and fruits.
Incentives to investment and donations for Scientific and Technological Development:
Income taxpayers who directly or indirectly invest in, or give grants to, projects qualified as technological research and development can deduct the entire amount of their investment in the taxable year in which said investment was made. Additionally the investor may discount 25% of the invested value in the same taxable year in which it was made.