The Colombian Free Trade Zones offer customs and tax benefits that are profitable for both domestic and foreign investors, placing their trust in our country to install their companies and operate from our territory to the rest of the world; aware of the different incentives they get when settling in a free trade zone, especially the differential income rate of 20%.
Last January 30, 2024, the National Government issued Decree 0047 of 2024, marking a milestone in tax regulation by adjusting paragraph 6 of Article 240-1 of the Tax Statute and amending Decree 2147 of 2016. This decree focuses on the regulation of internationalization plans.
The decree defines the Internationalization and Annual Sales Plan as the instrument through which free zone industrial users will establish their net income goals for operations in the national customs territory, as well as other income derived from activities other than those authorized.
This plan becomes a prerequisite for qualified industrial users as of December 13, 2022 who wish to benefit from the preferential income tax rate of 20%. Its application must be previously approved by the Ministry of Commerce, Industry and Tourism (“MINCIT”) through an administrative act.
The new regulations can be summarized as follows:
- Industrial Users qualified prior to Law 2277: 20% income tax rate.
- Qualified Industrial Users since Law 2277: 20% income for income from export of goods and services and 35% for income from operations in the National Customs Territory and other income from activities for which it was authorized, recognized or qualified.
With this new decree, internationalization is crucial for industrial users who wish to take full advantage of the benefits of the free trade regime, thus ratifying that free trade zones are one of the best instruments to guarantee the country’s competitiveness, promoting the generation of employment, attracting investment and productive linkages.
