Tax incentives
Municipal
The Municipality of Yotoco, within its Development Plan, granted an exclusive package of tax incentives through Agreement No. 07 of June 20, 2017, amended by Agreement No. 05 of August 31, 2019, with the Mayor’s Office, for companies that establish themselves within its territory and hire at least 10 residents of the Municipality of Yotoco.
These tax incentives are aimed at stimulating the sustainable development of the regions. Within some of its key areas, correlations exist that are relevant to the Development Plan of the Municipality of Yotoco, particularly regarding the promotion of income and job creation, increased productivity of companies through sophistication and diversification, and the attraction of foreign direct investment. To this end, the plan allows for the granting of direct and targeted incentives that facilitate investment in high value-added activities.
CLIP promotes the generation of new business developments in the Municipality, which leads to job opportunities and economic growth for its inhabitants and the companies located there.
ICA Tax
With the hiring of
10 employees from Yotoco
100% Exemption for
10 years
Property tax
Increase in cadastral valuation:
Freezing by
10 years
ZOMAC
ZOMACs are a group of municipalities encompassing the areas of the country most affected by the armed conflict, as indicated by their acronym ZOMAC – Zones Most Affected by the Armed Conflict. These zones have a number of implications for the tax regime for companies operating in these areas or those established in the zones most impacted by the conflict. The tax benefits and incentives for ZOMACs are outlined in Articles 235 to 237 of Law 2819 of 2016 and Decree 1650 of 2017.
New companies that have their principal place of business and conduct all their economic activity in ZOMAC municipalities will receive income tax relief until 2027, depending on their size.
Income tax
Income Tax Relief until 2027:
Micro and small:
Medium and large:
Free Trade Zone
Through Resolution Number 0763 of April 19, 2018, issued by the Ministry of Commerce, Industry and Tourism, the existence of CLIP Permanent Free Trade Zone was declared until the year 2048, making it the youngest Free Trade Zone in the country, offering:
A single income tax rate of 20%. Currently, the rate in the National Customs Territory is 35% for 2022.
No customs duties (VAT and tariffs) are levied or paid on the purchase of raw materials and machinery brought into the free trade zone.
Companies have the option to export goods and services from the free trade zone to third countries.
VAT exemption applies to raw materials, parts, supplies, and finished goods sold from the National Customs Territory to industrial users of goods or services in the free trade zones, or traded between these users.
Partial processing can be carried out outside the Free Trade Zone for up to 9 months.
Free Trade Zone
Flat rate
income tax
20%
No payment customs taxes
19% VAT Colombia
