Sector specific benefits
In Colombia there are incentives which consist of an income tax exemption for a determined period of time. This means that the companies which benefit from these incentives will pay a 0%, instead of the general tariff which is 25%. However, it is important to mention that they will have to pay the income tax for the equity – CREE of 9% over the profits.
- Travel services, agricultural production, fisheries, mariculture, maintenance and repair of vessels, health, data processing, call center, financial brokerage services, technology development programs approved by Colciencias, maquila and education, offered by new businesses to be constituted, effectively installed and developed any of the above mentioned activities in the Archipelago of San Andres, Providencia and Santa Catalina from 1 January 2013 until 2017.
- Hotel services provided in new hotels constructed between 2003 and December 31, 2017, for a period of 30 years.
- Hotel services provided in hotels remodeled and/or expanded until December 31, 2017, for a period of 30 years.
- Ecotourism services for 20 years beginning from 2003.
- Late yield crops planted until December 31, 2014, for a period of 10 years from the beginning of production.
- Electric power sales produced by generating companies based on aeolic resources (wind), biomass or agricultural waste until January 1, 2018.
- River transportation services provided with shallow draft vessels and barges that when loaded have a draft lower than 4.5 feet, until January 1, 2018.
- Publishing companies devoted to publishing books, magazines, brochures or scientific or cultural collectible series are exempt until December 31, 2033.
- New forestry plantations and sawmills, have an exemption on income tax. This benefit covers plantations established from the 1st of January 2003 and this does not have temporary restrictions. Plantations need to be registered with the Ministry of Agriculture.
- The software, developed in Colombia and with protected intellectual property rights, with high content of national scientific and technological research, certified by Colciencias, for a term of five (5) years from January 1, 2013.
- Scientific and Technological Investments and Donations: Taxpayers who invest in, or make donations to, directly or indirectly, projects qualified as scientific, technological or technological innovation or in projects related to professional education in public or private universities, are allowed to deduct one hundred and seventy five percent (175%) of such investment expenses for income tax purposes. This deduction shall not exceed forty percent (40%) of the taxpayer’s tax base, a figure which is determined before subtracting such investment.