The country today has 122 free trade zones where there are more than 1.000 companies established in
different regions. This year, the free trade zones underwent some changes due to the reform
tax "Law 2277 of December 13, 2022" specifically in article 11 that businessmen, entrepreneurs and investors should know in order to have a clear overview to land their
projects in any of the #FreeTradeZonesInColombia.
It is important to clarify that the income tax rate for the tax year 2023 will be
20% for all companies that are located in the #FreeTradeZones 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 begins on January 1, 2024,
and will be divided like this:
First: The income recorded by the companies of the #FreeTradeZones for foreign sales
(exports) will have a 20% rental rate.
Companies can structure their internationalization and annual sales plan and in this way
way they can get the benefit of paying an income tax rate of twenty percent
20% only applied to the income your company records from foreign sales
(exports) from 2024.
If companies do not comply with the internationalization plan, they will not be able to have the preferential rate.
even if they present export figures.
If companies do not structure their internationalization plan, they will not be able to have the preferential rate.
even if they present export figures.
Second: The income recorded by companies in the Free Trade Zones from sales in Colombia
will have the current rate of article 240 of the Tax Statute, which is currently 35%, that is,
Sales made to Colombia will be taxed at 35%, even with the plan.
internationalization, starting in 2024.
In terms of logistics, customs and taxes, THE REFORM DID NOT MODIFY the other benefits
that we offer the free zones in Colombia and all companies CONTINUE WITH THE
INVESTMENT AND EMPLOYMENT COMMITMENTS that the standard requires in order to obtain those
benefits. What are those benefits?
- Imports of raw materials, machinery, spare parts, supplies, construction materials
construction and consumables, without payment of VAT and tariff while they are in the free zone. - Purchases from local Colombian companies without paying VAT, which represents a flow of
important cash for companies. - Nationalization with the most favorable subheading when selling in Colombia, this
benefit is offered only by the free zone regime. - Partial nationalizations.
- Storage without time limit while the merchandise is in the free zone
- Sales abroad without payment of VAT or tariff.
- No DEX is required for export.
- It does not require container inspection in a free zone because the merchandise is unloaded from
righ now. - Free zone companies (Users) benefit from bilateral agreements or
multilateral. - Inter alia
Additionally, each of the multi-company free zones offers benefits.
additionally, in the case of the Western Free Trade Zone we highlight:
- Green free zone with circular economy benefits
- Strategic location and 100% industrial use
- 7/24 Security
- Robust and high-tech infrastructure
- Underground networks
- Competitive energy rate
- Experience in Data Center and manufacturing projects
Specific cases for export income:
Health
In the case of clinics that are free zones or in the case of health companies that are located
Within multi-company free trade zones, they may add as income from exports of
goods and services income from the provision of health services to patients
foreign.
Airports
Free zones dedicated to the development of airport-related infrastructure will add
as income from the export of goods and services
To whom does the rental rate adjustment NOT apply and to whom does the internationalization plan not apply?
- Offshore: These free trade zones, mainly for hydrocarbons, will maintain the 20% rental rate.
- Ports: Special Free Trade Zones or Single-Business Free Trade Zones for port services will maintain the 20% rental rate, and companies classified as industrial users of port services in a free trade zone will maintain the 20% rental rate.
- Refining of fuels, petroleum derivatives or refining of biofuels
industrialists: Special Free Trade Zones or Single-Enterprise Free Trade Zones whose main corporate purpose is the refining of petroleum-derived fuels or the refining of industrial biofuels will maintain the 20% rental rate.
- Companies that provide logistics services: Services described in numeral 1 of article 3 of Law 1004 of 2005: Logistics, transportation, handling, distribution, packaging, repackaging, packaging, labeling or classification will maintain the rental rate of 20%.
- Free Trade Zone Operator Users: They maintain the 20% rental rate.
Myths vs Reality
Myth: Special permanent free trade zones lose their declaration or authorization
Reality: No, these types of free trade zones in any sector do NOT lose their designation.
Myth: If I am a company located in a free zone and I do not sign the internationalization plan, what is my
company leaves the free zone?
Reality: No, the company continues in the free zone with all customs benefits,
logistics and taxes, however the income tax rate will no longer be 20% but
35%.
Myth: Companies located in free trade zones that do not export lose their authorization as
free zone users
Reality: No, companies remain in the free zone with all the benefits.
customs, logistics and tax, however, the income tax rate will no longer be the same
20% if not 35%.
Yes or yes #FreeTradeZonesInColombia We must unite and as a team focus on promoting
the regime, clarify myths and defend this incentive so that companies in the #free trade zones
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 Martínez – Commercial Director of the Western Free Trade Zone