Colombia introduces new incentives for small enterprises

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According to law 1819 of 2016, adopting the structural tax reform bill introduces amendments to the corporate income tax incentives applicable to small enterprises benefiting from Law 1429 of 2010, as follows:

Years of incorporation Current regime Previous regime
Years 1 & 2 9% + (general CIT rate – 9%)* 0 0% of the general CIT rate
Year-3 9% + (general CIT rate – 9%)* 0.25 25% of the general CIT rate
Year-4 9% + (general CIT rate – 9%)* 0.50 50% of the general CIT rate
Year-5 9% + (general CIT rate – 9%)* 0.75 75% of the general CIT rate
As from year-6 100% of the general CIT rate 100% of the general CIT rate

Small enterprises are described as:

  • having been incorporated since 29 December 2010;
  • having total assets not exceeding 5,000 monthly minimum legal wages; and
  • having fewer than 50 employees.

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