Today the country has 122 free zones where there are more than 1,000 companies installed in
different regions. For this year the free zones had some changes due to the reform
tax "Law 2277 of December 13, 2022" specifically in Article 11 that businessmen, entrepreneurs and investors should know to have a clear picture to land their
projects in any of the #ZonasFrancasEnColombia.
It is important to clarify that the income tax rate for the taxable year 2023 will be
20% for all companies that are located in the #ZonasFrancas throughout the country, applied
for all income regardless of whether it is the result of selling abroad or selling to Colombia.
The change in the income tax rate actually starts as of January 1, 2024,
and will be divided as follows:
First: Income recorded by companies in the #ZonasFrancas from sales abroad
(exports) will have the income rate of 20%.
Companies can structure their internationalization and annual sales plan and in this
way they can obtain the benefit of paying an income tax rate of twenty percent
percent 20% only applied to the income that their company registers from sales abroad
(exports) from 2024 onwards.
If companies do not comply with the internationalization plan, they will not be eligible for the preferential tariff
even if they present export figures.
If the companies do not structure the internationalization plan, they will not be able to have the preferential tariff
even if they present export figures.
Second: The income registered by the companies of the Free Trade Zones for sales in Colombia
will have the current rate of article 240 of the Tax Statute, which today is 35%, that is to say, the
sales made to Colombia will be taxed on 35% even with the plan of
internationalization, starting in 2024.
In terms of logistics, customs and taxes, THE REFORM HAS NOT MODIFIED the other benefits
that free zones in Colombia offer and all companies CONTINUE WITH THE
COMMITMENTS OF INVESTMENT AND EMPLOYMENT required by the regulation in order to obtain those
benefits. What are those benefits?
- Imports of raw materials, machinery, spare parts, supplies, construction materials and consumables, without payment of VAT and duty while they are in the free trade zone
. - Purchases from local Colombian companies without payment of VAT, which represents an important cash flow for the companies.
. - Nationalization with the most favorable subheading when selling in Colombia, this
benefit is offered only by the free trade zone regime. - Partial nationalizations.
- Warehousing without time limit while the goods are in the free zone
- Sales abroad without payment of VAT or ARANCEL.
- DEX is not required for export.
- No container inspection is required in the free zone because the goods are unloaded from
immediately. - Free trade zone companies (Users) benefit from bilateral agreements or multilateral
. - Among others
Additionally, each of the multi-company free zones offer additional benefits
, in the case of Zona Franca Occidente we highlight:
- Green free trade zone with circular economy benefits
- Strategic location and 100% industrial use
- 7X24 Security
- Robust, high-tech infrastructure
- Subway networks
- Competitive energy tariffs
- Experience in Data Center and manufacturing projects
Specific cases for export revenues:
Health
In the case of clinics that are free zones or in the case of health companies that are located
within multi-enterprise free zones, they may add as export income from
goods and services the income from the provision of health services to foreign patients
.
Airports
Free trade zones dedicated to the development of infrastructure related to airports will add
as income from the export of goods and services.
To whom does the income tax rate adjustment NOT apply and to whom does the internationalization plan not apply?
- Offshore / Off Shore: These Free Trade Zones, mainly for hydrocarbons, will maintain the 20% income rate.
- Ports: Special Free Trade Zones or Uniempresariales of port services will maintain the income rate of 20% and the companies qualified as industrial users of port services of a free trade zone will maintain the income rate of 20%.
- Refining of fuels, petroleum derivatives or refining ofindustrial biofuels
: Special Free Trade Zones or Uniempresariales whose main corporate purpose is the refining of petroleum derivatives or refining of industrial biofuels, will maintain the income rate of 20%.
- Companies that provide logistics services: Services described in numeral 1 of article 3 of Law 1004 of 2005: Logistics, transportation, handling, distribution, packing, repacking, packaging, labeling or classification will maintain the income rate of 20%.
- Free Trade Zone Operators: Maintain the rental rate of 20%.
Myths vs Reality
Myth: Special permanent free zones lose their declaration or authorization.
Reality: No, this type of free zones of any sector DO NOT lose their declaration.
Myth: If I am a company located in a free trade zone and I do not sign the internationalization plan, does my
company leave the free trade zone?
Reality: No, the company will continue in the free zone with all the customs benefits,
logistics and taxes, however the income tax rate will no longer be 20% but
35%.
Myth: Companies located in free zones that do not export lose their authorization as
free zone users.
Reality: No, the companies continue in the free trade zone with all the benefits
customs, logistics and taxes, however, the income tax rate will no longer be
20% but 35%.
If or if the #ZonasFrancasEnColombia we must unite and as a team focus on promoting
the regime, clarify myths and defend this incentive so that companies in the #zonasfrancas
continue to grow, evaluating the foreign market without neglecting the local market and continue
with the recognition that Colombia has in international trade and on the radar of the new
foreign investment.
Author: Katerine Martinez - Commercial Director Zona Franca de Occidente
