The benefit and its requirements:

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What is the benefit?

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Companies that develop activities that increase the productivity of the agricultural sector, as long as they meet certain requirements (minimum investment and jobs), can access a benefit that consists in that their profits will be considered as exempt income, that is, they will not be subject to income tax income for 10 years.

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That's right: Your company will not have to pay income tax nor will it be subject to withholding tax for 10 years.

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The National Government, within its policy to promote the orange economy, promoted this tax benefit, which is currently established in the law (article 235-2 number 2 of the Tax Statute and Decree 849 of 2020).

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Important! The deadline to apply for the benefit is October 14, 2022. We recommend that you apply as soon as possible so as not to miss out on this unique opportunity.

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How much can I save with the benefit of not paying income tax for 10 years?
 

Use our calculator  to find out how much you can save.

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What are the initial requirements that your company must meet in order to decide if it is a candidate for the benefit?

These requirements are what we include in the form (checklist), which you must complete. The requirements are:

• Your company must be incorporated as a company.

• Your company must be an income tax payer.

• Your company must obtain income of less than 80,000 UVT ($2,848,560,000) in the respective year.

• Your company must have been incorporated as of December 28, 2018.

• Your company must be dedicated to one or more of the economic activities related to the agricultural sector (agricultural activities and food and beverage production), that is, those specifically defined in the law in accordance with the ISIC code (see next question).

Important: Keep in mind that your company can develop one or more of the activities described in the list as well as others not included in it, but the benefit is limited only to the activities included in the list.

If you have questions, contact us   for advice.

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What are the economic activities related to the agricultural sector (agricultural activities and food and beverage production)?

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Activities related to the agricultural sector (agricultural activities and food and beverage production) are those specifically defined in the following table.

You must compare the ISIC codes of the activities that your company has registered in its RUT and certificate from the Chamber of Commerce, and verify if they coincide with the ISIC codes and activities in the following table:

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Our advice:

What is Open Legal?

We are a law firm in which we advise entrepreneurs and SMEs to solve their corporate and tax needs through a close, practical and reliable service. More than seeing problems, we prevent risks and identify opportunities.

What does our consultancy consist of?

At OpenLegal we accompany you in the process that must be carried out before the Ministry of Culture. Our advice consists of:

Obtain from you and organize the necessary information to submit the application to the Ministry of Culture,

Prepare the application verifying that it meets all the requirements of the law, and

Submit the application and follow up until its approval.

Process:

What is the deadline by which the application must be submitted to the Ministry of Agriculture and Rural Development?

The possibility of submitting the application to the Ministry of Agriculture and Rural Development ends on October 14, 2022.

Can the application be submitted in any of the above deadlines or is it better to do it as soon as possible?

We recommend submitting the application as soon as possible. Thus, a response from the Ministry must be obtained within the shortest possible time.

Submitting the application as soon as possible means that you can have the benefit in force for longer and, therefore, more days without paying income tax or withholding at source.

How long does it take for the response from the Ministry of Agriculture and Rural Development on my request to apply for the 10-year exempt income benefit?

The Ministry will have a month to study your application. In case of requiring additional information, we will have the term required by the Ministry to send it and once received, it will begin to count again the term of one month to resolve the request presented by the company.

What happens if your company is not approved for the benefit?

If there is a lack of information or any clarification on the information presented, the Ministry of Agriculture and Rural Development may request your company to complement it. In this case, we will present the requested information.

If the request is rejected, we will review with the company what is the best procedure to follow, since we can:

Submit an appeal, requesting that the request be approved.

Resubmit the request taking into account the reasons for return.

Find out here the terms and conditions of our service.

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