Companies 2019: Access to tax benefits

With the entry into force of the Financing Law 1943 of 2018, tax benefits were established to which companies created as of January 1, 2019 will be able to access, as is the case of orange economy companies and development of the Colombian countryside.

Next, we will answer the following question: Did the Financing Law establish tax benefits for companies created as of January 1, 2019?

Through Article 235-2 of the Tax Statute -ET-, as amended by Article 79 of Law 1943 of 2018, tax benefits were established for companies created as of January 1, 2019. Among these are the benefits of exempt income for a period of 7 and 10 years for orange economy companies that exploit any of the activities indicated in literal c) of numeral 1 of the article in mention, and for those companies that contribute to the development of the Colombian countryside, incorporated before December 31, 2021, provided that such companies belong to the ordinary tax regime.

It should be noted that if any national company decides to use the above mentioned benefits, it must take into account that such incentives will only be applicable to the company, so the after-tax accounting profit will be fully taxed to its partners or shareholders, being the latter who will pay the tax that would correspond to the company, according to the indications of article 242-1 of the ET, in case the partners are legal entities; or the table of article 242 of the ET, if they are resident individuals.

Additionally, these entities will be obliged to make the parafiscal contributions and the contributions corresponding to the contributory regime(articles 202 and 204 of Law 100 of 1993), contributions to the general system of social security in health (Law 1122 of 2007), Sena and ICBF, in accordance with the requirements established by law.

Source: Actualícese