ACT 218 OF 1995
Official Gazette, No. 42117, of 22 November 1995
Whereby Decree 1264 of June 21, 1994 proffered developing emergency amending declared by decree 1178 of June 9, 1994 and other provisions. Summary
CONGRESS OF COLOMBIA DECREES
ARTICLE 1o. Amend article 1. of Decree No. 1264 of June 21, 1994, which shall read as follows: Tax exemptions set forth in this Decree shall remain in force until 31 December 2003.
For purposes of this Decree is understood that the area affected by the natural phenomenon zone is comprised within the territorial jurisdiction of the municipalities of Cauca and Huila departments, thus:
In Cauca: Caldono, Inza, Jambaló, Toribio, Caloto, Totoró, Silvia, Paez, Santander de Quilichao, Popayan, Miranda, Morales Padilla, Puracé, El Tambo, Timbío, Suarez, Cajibío, Piendamó, Sotará, Buenos Aires, La Sierra, Puerto Tejada, Corinto and Patia.
In Huila: La Plata, Paicol, Yaguará, Nátaga, Iquira, Thessaly, Neiva, Aipe, Campoalegre, Giant, Hobo, Rivera, Villavieja, Acevedo, La Argentina, Palermo, Pitalito, Tello, Teruel, St. Augustine, Algeciras and Garzon. Effective Notes
PARÁGRAFO. Effective Jurisprudence
Previous legislation Article 2.
. Amend the 2nd article. of Decree No. 1264 of June 21, 1994, which will read:
shall be exempt from income tax and complementary new mining agricultural enterprises, Livestock, Microenterprise, Commercial, Industrial, Tourist establishments exporting companies and not They are relating to the exploration or exploitation of hydrocarbons, which are actually installed in the area affected by the earthquake and flood the Paez river area, and those existing prior to June 21, 1994 to demonstrate conclusively substantial increases in employment generation, provided they are located in the municipalities mentioned in article 1. of this Decree.
The amount of the exemption shall apply for ten (10) years according to the following percentages and periods:
One hundred percent (100%) for companies or new pre established between the June 21, 1994 and June 20, 1999; fifty percent (50%) which are installed between 21 June 1999 and 20 June 2001; and twenty-five percent (25%) to those established between 21 June 2001 and 20 June 2003.
shall enjoy the same benefit productive economic units specified in the first paragraph of this article , preexisting natural phenomenon and because of this, have decreased their real incomes by a minimum of forty percent (40%), according to certification issued by the Corporation Nasa Kiwe, or by the Ministries of Economic Development, Agriculture and Mining and Energy . PARAGRAPH 1.
. Taxpayers Tax income and complementary who have made investments in the affected area shall be entitled to apply for exemption percentages and periods determined in this article. PARAGRAPH 2.
. In the case of new companies delayed performance during the unproductive period until 31 December 2003, will be recognized equivalent to fifteen percent (15%) of the investment tax credit in that period. To this effect must accompany the respective certification of the Ministry of Agriculture if it comes Companies agricultural or livestock, the Ministry of Mines and Energy if it comes to mining companies that are not related to the exploration or exploitation of hydrocarbons, or the Ministry of Economic development if it is commercial, industrial and tourism enterprises.
This credit will be represented in a bond that will maintain its real value in the terms established by the Government and may be used only to pay income and other taxes from the date productive activity begins. To this end the rules of the Tax Code governing the payment of tax by certificates apply, as appropriate,. PARAGRAPH 3.
. The interest received by the owners of activities to acquire property development of Decree 1185 of 1994 shall apply the provisions of the second paragraph of Article 30 of the Law 9a.
PARÁGRAFO 1989. 4o. The exemption shall apply to new businesses effectively incorporated in the affected area, to predate the June 21, 1994 that prove substantial increases in employment generation and export companies. Effective Jurisprudence
ARTICLE 3. Amend the article 3 of Decree 1264 of June 21, 1994 which will read:
For the purposes of the first paragraph of the 2nd article. of this decree, is considered to have established an undertaking which, through its legal representative, if a legal or contractor person, whether natural person, in memorial to the Tax Administration and respective National Customs, expresses its intention to receive the benefits granted by this decree detailing the economic activity to which, the Capital of the Company, its place of location and principal place of business is dedicated.
Commercial companies shall be deemed established from the date of registration of its constitutive act in the Commercial Register. Other legal entities from the date of its constitution. PARAGRAPH 1.
. To benefit from the exemption may not pass a longer period of five (5) years from the date of establishment of the company and the time the production phase begins. PARAGRAPH 2.
. In the case of companies or entities assimilated to them must submit, within the period provided in this article, a copy of the deed or document of incorporation. PARAGRAPH 3.
. The change of name or owner of the business or commercial establishments does not give them the character of new to existing and are not entitled to the exemption that refers to article 1. Decree 1264 of 21 June 1994.
PARÁGRAFO 4o. To determine the exempt income is defined as income from a business or commercial establishment of goods and services of the Industrial, Agricultural, Microenterprise, Rancher, Tourism and Mining, to those incurred in the production, sale and delivery material goods within or outside the area affected by the disaster. Effective Jurisprudence
ARTICLE 4. Amend Article 4o. Decree 1264 of June 21, 1994, which will read:
requirements for each year that the exemption is requested:
In order for the exemption on income tax and supplementary covered by this Decree, from 1994 tax year taxpayers must submit to the Administration of Tax and Customs corresponding to their residence or principal place of business, before 30 March following the fiscal year, the following documents and information: || | 1. Certificate issued by the respective Mayor, which stated that the company or establishment to the benefit is physically installed in the jurisdiction of one of the municipalities that article 1 refers to. of this Decree.
2. Certified public accountant or auditor, as appropriate, which establishes:
a) is an investment in a new company established in the respective municipality between the date that took effect this Decree 31 December 2003;
B) the date of initiation of the production period or the corresponding to the stage unproductive phases;
C) The amount of the investment and exempt income determined in accordance with the provisions of this Decree.
3. When it comes to predate the earthquake or flood the Paez River productive economic units or companies or establishments located in non-productive period or are late performance, certification to identify and specify the nonproductive or late performance phase and year obtaining profits issued by the Ministry of Agriculture, if it comes to agricultural and livestock activities by the Ministry of Economic Development in the case of industrial, commercial or Tourism or the Ministry of Mines and Energy in the case of mining activities. Effective Jurisprudence
The 5th ITEM. Companies based in the country to perform during the next five years to 1994, capital expenditures in cash in the equity of the companies identified in the article 2. Decree 1264 of 1994, may opt for the taxable period in which he made the investment, by one of the following tax benefits:
a) Deduct tax income and other dependents, forty percent (40 %) of the value of such investments in certain companies in the 2nd article. Decree 1264 of 1994;
B) Deduct income hundred fifteen percent (115%) of the value of such investments in companies identified in article 2. Decree 1264 of 1994.
PARAGRAFO. The benefits provided herein are exclusive. Concurrent or complementary benefits based on the same fact, application causes the loss of the two benefits requested, subject to penalties for inaccuracy that may apply. "
Term Notes Effective Decisions
Previous Legislation ARTICLE 6o. the machinery, equipment, raw materials and new parts or models produced up to five (5) years in advance at the time of import are installed or used in the municipalities referred to in article 1. of this Law shall be exempt from any tax, fee or contribution, provided that the respective import license has been approved by the Ministry of Foreign Trade at the latest on 31 December of the year 2003
Jurisprudence Jurisprudence Effective Effective
Jurisprudence Effective Legislation
previous article 8. donations made by natural or legal entities who work in the rehabilitation of victims and affected areas shall be exempt from any tax, fee or contribution until 31 December 2003, and will not require the procedure for judicial intimation set out in Article 1458 the Civil Code, as stipulated in article 5. of Decree No. 1264 of 21 June 1994. Notes Editor
Article 9. The processes are in place before the competent Judges, before December 31, 1998, to declare the presumptive death of those who disappeared because of the earthquake and flood the Paez River, will be dealt with according to procedure and free publications established by Decree 3822 December 1985. 27
ARTICLE 10. The Corporation Nasa Kiwe promote and support, financially and technically, the formation of individual and family enterprises or associations with the victims of the natural disaster, which enjoy exemptions and benefits set by this law. Effective Jurisprudence
ARTICLE 11. Amend article 6. of Decree No. 1264 of June 21, 1994, which will read: Taxpayers who avail themselves of the benefits prescribed under this Decree entered its books before the Chamber of Commerce or the Monitoring of Tax Administration and Customs national corresponding to the place of their economic activities; They record all operations related to the ordinary course of business and demonstrate compliance with the condition to generate eighty percent (80%) of production in the affected area.
When instituted businesses, companies or establishments with the intention of using them fraudulently to obtain the benefits ordered by this Decree; or appear to be located in the affected areas in order to avoid paying taxes; or simulate operations to achieve undue exemptions, Tax Administration and Customs respective requested disown exempt income, costs and deductions and impose feigned as sanctions that may apply. Effective Jurisprudence
ARTICLE 12. The installation of new companies and significant increases in companies established in the area affected by the natural phenomenon referred to herein may be national, binational and multinational nature and subject to the following rules:
a) Effective Notes
B) shall be free to associate with foreign companies;
C) goods brought into the area determined by article 1. of this Act that matter the rest of the national territory will be subject to the ordinary rules and requirements applied to imports.
PARÁGRAFO. For the purposes set out in this Act, means installing new company that which constitutes within five (5) years following the enactment of this Act, for which the employer must demonstrate to the Administration of Taxation respective , intended to settle in the affected area, indicating capital, place location and other requirements by regulation, establish the Tax and Customs.
Shall not be construed as those new companies that are already established and are subject to statutory reform for name change, owners or merging with other companies. For the purposes set out in this Act is meant by significant expansions in established companies, those that are initiated within five (5) years following the enactment of this Act and which constitute an expansion project that means an increase in production capacity of at least thirty percent (30%) of those currently produced, which must be approved, for purposes of enjoying the exemptions under this Act, the Tax and Customs or the person their times, subject to compliance with the requirements established by regulation her. Effective Jurisprudence
roads of different categories affected by the disaster Paez, in which the National Roads Institute has invested, invested or intends to invest, both in its construction, reconstruction, maintenance, improvement, rehabilitation, care emergency and other works required road infrastructure, will be nationalized.
ARTICLE 14. Handicrafts Colombia, the DRI Fund, the IFI, the FIS and allocate resources Findeter investment and credit to finance initiatives presented by the associative forms of small farmers, indigenous communities, black communities and households concerning the promotion of productive activities, craft and agricultural development in the affected area.
Investments of any nature that are ahead in the area of the catastrophe that referred to in this Act must respect the environment, social interest, ethnic diversity and cultural and archaeological heritage of the nation.
Article 15. This Law governs from its enactment and repeal all provisions that are contrary.
The President of the honorable Senate, JULIUS CAESAR
The Secretary General of the honorable Senate,
PUMAREJO PEDRO VEGA.
The President of the honorable House of Representatives,
Rodrigo Rivera Salazar.
The Secretary General of the honorable House of Representatives, DIEGO VIVAS
REPUBLIC OF COLOMBIA-NATIONAL GOVERNMENT.
Published and execute.
Given in Popayan, Cauca Department, 17 November 1995.
Ernesto Samper Pizano The Interior Minister Horacio Serpa Uribe
The Minister of Finance and Public Credit, WILLIAM PERRY RUBIO