By: Maria Camila Herrera – Associate Lawyer
The tax incentive established in Article 91 of Law 2010 of 2019, aimed at companies whose corporate purpose is linked to the development of cultural, creative or technological activities was born in 2019. In this, the economic activities enabled in accordance with Decree 286 of 2020, have the possibility of accessing the benefit of income exemption for 7 years.
However, the Ministry of Culture informed that, only until next July 30, companies of the Orange Economy can register for the benefit of income exemption for seven years. To this date, 673 companies have benefited from this incentive and have committed to create 5,782 new jobs and generate $191.00 million of investment.
Those interested in applying for this benefit must be taxpayers of income tax and complementary taxes under the ordinary regime, have their main domicile within the Colombian territory, and their annual gross income cannot exceed 80,000 UVT, which is equivalent to $2,904 million. Likewise, companies interested in applying must guarantee a minimum investment of 4,400 UVT, equivalent to $159 million, in a maximum of three years, related to the acquisition of property, plant and equipment, and/or intangible assets. Likewise, they must generate a minimum of 3 jobs directed to people who perform functions directly related to activities considered as technological added value and/or creative activities.
The average nominal income tax rate paid by companies in Colombia is 32%, so from this benefit these resources could be retained in the companies, in order to encourage creative industries.
In case you do not reach the registration of the current period (until July 30), the last period to file will be from October 1 to December 31, date on which the benefit ceases.
If you require our advice to access this benefit, please do not hesitate to write to us at info@abusaidgomez.com or directly to our Partner José Alejandro Abusaid at jose.abusaid@abusaidgomez.com.
Below you will find the CIIU codes of the companies that can access the benefit:
