On November 24, the Colombian Ministry of Finance and Public Credit (MinHacienda) issued Decree No. 2112 of 2019, by which Colombia introduces new tax incentives for commercial companies established in special economic zones (SEZs).
The Decree creates a special tax regime for La Guajira, Norte de Santander, Arauca and capitals of Armenia and Quibdó with the purpose of attracting domestic and foreign investment. The new companies that are established and start their main economic activity from 25 May 2019 until 24 May 2022 may apply for the special tax regime. The income tax rate applicable to its beneficiaries refers to:
- 0% during the first five years, and
- 50% of the general rate for the next five years.
At the same time, the incorporated companies are obliged to prove the 15% increase in direct new jobs.
