Free trade zones are in fashion! For some time now, there has been a lot of talk about how to strengthen them and work with them so that they can be the driving force of the Colombian economy, but -lately- trade associations and the Government are working on ideas and proposals to strengthen them and continue contributing to the generation of employment and regional development, in addition to providing tax savings for the companies that establish themselves there.
For example, by the middle of this year, the Ministry of Commerce, Industry and Tourism reported that through its Intersectorial Commission of Free Trade Zones, the " modification of three free trade zones, the extension of an existing one and the creation of a new one" was given, which was expected to create 200 jobs and generate investments for 1.8 billion pesos, taking advantage of the multiple benefits of being in a free trade zone.
It is important to remember that free trade zones bring tax and customs savings, so we want to explore how to maximize them in Colombia and enjoy the incentives offered.
- Understand the benefits of being in a Free Trade Zone: Before delving into strategies to maximize tax savings, it is essential to understand the benefits. Some of the most prominent incentives include tax exemption on imports and exports, reduction or elimination of income and wealth taxes, and tax exemption on financial transactions.
Familiarizing yourself with these benefits of being in the FTZ is the first step to taking full advantage of the tax savings.
- Choosing the right location: In Colombia, the available free trade zones have different specific advantages in terms of infrastructure, access to markets and additional tax benefits. Researching and evaluating the different options is crucial to identify the optimal location that fits your business needs and maximizes tax savings.
For example, in Zona Franca de Occidente, different tax benefits can be obtained, such as the following:
- Identify permitted activities: Research the restrictions on commercial activities in free trade zones. Before setting up an operation, it is important to verify which activities are allowed and how they fit the nature of your business. By choosing activities that align with the incentives, it is possible to optimize tax savings and maximize the benefits of being in a free zone.
- Take advantage of tax exemptions on imports and exports: Another advantage of operating in a free zone is the tax exemption on imports and exports. It is necessary to be clear about the specific customs procedures and requirements. This implies a correct management of customs documents and processes, as well as the implementation of efficient inventory control and tracking systems.
- Use special customs regimes: in addition to general tax exemptions, there are special customs regimes that provide even more benefits. For example, the temporary admission regime allows the importation of certain goods with a temporary suspension of taxes, provided certain requirements and conditions are met. The important thing is to make sure that these regimes are applicable to your business to maximize tax savings.
- Comply with tax obligations: As you take advantage of the tax benefits of an FTZ, it is crucial to keep clear and accurate records of all commercial and financial transactions. This includes keeping records of imports, exports, inventories and movement of goods. In addition, be sure to comply with all tax and customs obligations established by the corresponding authorities. Failure to comply results in penalties and loss of FTZ benefits.
- Explore additional incentives: Additional incentives may be available in certain free trade zones. These include utility rate reductions, employee training subsidies, research and development support, among others. Stay informed about the programs and benefits of being in an FTZ that are provided in addition to your business.
- Expert advice: Maximizing tax savings can be a complex process. Having expert advice on tax and customs matters is highly recommended. Specialized professionals give specific guidance, helping you navigate regulations and optimize your strategies, that is being in tune with the benefits of being in a free trade zone.
By properly understanding and taking advantage of these incentives, it is possible to maximize tax savings and strengthen the financial position of your business. Remember to carefully research and evaluate the available options, comply with tax and customs obligations, and consider specialized advice to optimize your strategies is very important to take advantage of the benefits of being in a free trade zone.
Infrastructure, among the benefits of being in a free trade zone
Adequate infrastructure is a crucial factor in the success of a free trade zone. When well designed and equipped, it attracts investment, facilitates trade and provides an environment conducive to business development. Among the benefits of being in a free zone on the infrastructure side are:
Warehousing and logistics areas
Zona Franca Occidente has ample storage and logistics areas to meet the needs of the companies that operate in it. This includes warehouses, warehouses and secure storage spaces for goods. In addition, it is beneficial to have efficient loading and unloading areas, as well as facilities for handling containers and bulk goods. Its internal roads are wide so that freight vehicles can move around without inconvenience.
Production and assembly areas
Many Free Trade Zones focus on production and assembly activities. Therefore, it is essential to have designated areas for these activities. This means providing adequate space for production lines, workshops and assembly areas, equipped with the necessary facilities and services, places that are designed to promote efficiency and safety in manufacturing and assembly operations.
Service infrastructure
When there is a solid infrastructure of basic services, productivity is generated. In other words, a reliable supply of electricity, water, communications and high-speed Internet services, which are vital for the proper functioning of the companies established there, is ensured. Similarly, security services are provided, such as surveillance and access control systems, to ensure the protection of the facilities and stored merchandise.
Get to know the offer that Zona Franca Occidente has for you, so you can enjoy its infrastructure, experience and services. Find all the details and evolve in the way of doing business.
