ACT 608 OF 2000
Official Journal No 44129 of 15 August 2000
THE CONGRESS OF COLOMBIA
Whereby amending and supplementing the Decrees 258 and 350 of 1999, proffered in development of economic emergency declared by Decree No. 195 of 1999 and other provisions. Summary
DECREES: CHAPTER I.
ARTICLE 1o. Affected zone. Determines as the area affected by the natural phenomenon of the earthquake of January 25, 1999, the territorial jurisdiction of the following municipalities:
Quindio Armenia, Buenavista, Calarca, Circassia, Córdoba, Finlandia, La Tebaida, Montenegro, Pijao, Genoa, Salento and Quimbaya.
Department of Caldas Chinchiná.
Risaralda Department Pereira, Dosquebradas, Santa Rosa de Cabal and Marseille.
Tolima Department: Cajamarca and Roncesvalles.
Department of Valle del Cauca: Alcalá, Caicedonia, Obando, Ulloa, Sevilla, La Victoria, Algeria, Bolivar and Barragan, municipality of Tulua, within the limits that judges had on 25 January 1999.
. EXEMPTION FROM INCOME AND SUPPLEMENTARY. shall be exempt from income tax and complementary new businesses, legal entities, to be established and physically locate within the jurisdiction of the municipalities mentioned in the previous article, between 25 January 1999 and 31 December 2005, and whose main corporate purpose, develop agricultural, livestock, commercial, industrial, agro-industrial activities, services, construction, export of tangible goods produced in the affected area, mining not related to exploration or exploitation of hydrocarbons , public utilities and complementary activities, tourism services, educational, data processing, technology development programs approved by Colciencias, and health services. Effective Notes
The exemption referred to in this Article shall apply to income that is obtained in the municipalities affected by the earthquake which Article 1o. of this law, developing the activities mentioned in the preceding paragraph.
ARTICLE 3o. END OF THE EXEMPTION. In the case of new companies, the exemptions contained in this Act shall apply for ten (10) years from the year in which the company is installed in the affected area. Exemptions apply here embodied according to the following percentages:
Location Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Quindio 90 90 90 90 80 80 80 80 70 70
Other municipalities 55 55 55 55 45 45 45 45 35 35
PARAGRAFO. The duration of the exemption from income tax is not presumptive income on the percentage of income tax exemption provided for each respective year cause.
. PRE-EXISTING COMPANIES. In the case of existing companies, exemptions governed for ten (10) years, as long as the income of the enterprise have fallen by thirty percent (30%) or more in 1999. The percentages of exemption
for pre-existing companies, they are the same as indicated in the previous article.
The 5th ARTICLE. In the case of business exemption be granted, as long as they relate to movable goods produced in the municipalities covered by Decrees 195 and 223 of 1999, which dispense retail and physical delivery takes place within the jurisdiction of municipalities.
. DATE OF INCORPORATION AND INSTALLATION COMPANY. For the purposes of this law, a company is considered constituted on the date of the public deed.
Also, the company, when this memorial to the respective Tax Administration and Customs, which revealed the following means installed:
- Intention to receive the benefits granted by law.
- Economic activity which is dedicated.
- Capital of the company.
- Location of the physical plant or building where the
develop economic ctivity.
- Principal place of residence.
Article 7. MINIMUM VALUE FOR TAXPAYERS TRANSACTIONS SUBJECT OF TAX BENEFITS WITH LINKED. The transactions of persons enjoying the benefits referred to articles 3. and 4o. of this law with people who are economically linked should be performed at least commercial values. Therefore, if performed by a lower value for tax purposes means that were performed by the above commercial values.
. REFORMS established companies. are not considered as new business, or enjoy the benefit under this law the following:
Companies that have made prior to January 25, 1999, and are subject to statutory reform, or splitting processes or merger with other companies.
Companies that are to be transferred from other parts of the country to one of the municipalities in which Article 1o. of this law. For this purpose simply demonstrating that fifteen percent (15%) or more of the value of fixed assets or current enterprise installed in the affected area were in use in some other region of the country to January 25 1999, a situation that makes you lose the benefit.
The violation of any of the situations described in the preceding paragraphs, is punishable by reimbursement of any tax benefit to be reached to obtain default interest and penalty for the two hundred percent (200%) of the value paid such benefits.
Article 9. REGISTRATION OF OPERATIONS. Taxpayers who avail themselves of the benefits of this law, shall register in accounting all operations related to the ordinary course of business and demonstrate that they meet the condition of generating production in the affected area.
ARTICLE 10. REQUIREMENTS FOR EACH YEAR EXEMPTION IS REQUESTED. Companies established in the affected area, for each taxable year benefiting from the exemption from income tax that treats this law, shall send to the Tax Administration and Customs that corresponds to your domicile or principal place of your business, before 30 March following the fiscal year, the following documents and information:
certificate issued by the mayor of the respective municipality, 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. of this law.
Certification auditor or public accountant, as appropriate, stating:
For new companies:
- That is a new company established in the respective municipality,
etween 25 January 1999 and 31 December 2005.
- the date of initiation of the production period or the
orrespondientes the stage unproductive phases.
- The amount of exempt income determined in accordance with the provisions
to this law.
These requirements will be verified by the respective tax administration and make effective monitoring legal compliance.
ARTICLE 11. BENEFITS FOR PARTNERS OR SHAREHOLDERS. Partners, shareholders, affiliates, participants and the like shall be exempt from income tax and complementary, for income by way of dividend, shares, surplus profits received from the undertakings stipulated in this Law, provided that such financial resources reinvested remain within the same company for a term not less than four (4) years from their investment and for the same periods.
ARTICLE 12. RETURN OF SALES TAX PAID IN THE IMPORT OR PURCHASE OF CAPITAL GOODS. The new acquiring or importing capital goods consisting of machinery or equipment within the year following their installation to be installed or used during the period of depreciation of assets, such as fixed assets of the income-generating activity in the municipalities legal persons mentioned in article 1. of this law, they may request the return or compensation of the sales tax paid on importation or acquisition, provided it is not carried as an expense, deduction or discountable tax and demonstrate that they are operating within the area marked on the Article 1o. of this law and in accordance with the regulations for the purpose by the national government, for which they must submit the application within six (6) days following the date of acquisition of capital goods months. In the case of existing companies, they are entitled to the refund referred to this article on capital goods acquired or imported within the year following the effective date of this law.
ARTICLE 13. FRANCHISE
TARIFF. Subject to compliance with what is stated in international treaties, duty-free shall apply to capital goods not produced in Colombia, imported by people in the municipalities mentioned in Decrees 195 and 223 of 1999 in the twelve (12) months following counted from the date of installation, provided that the imported goods are intended exclusively to be used in their income-generating activity within the territorial jurisdiction of such municipalities during the period of depreciation of the asset, in the form the regulations.
This exemption shall only apply in respect of imports taking place until 31 December 2005.
PARAGRAFO. The Ministry of Foreign Trade will prepare a list of capital goods not produced in Colombia, in the manner specified in the regulations.
ARTICLE 14. THE REQUIREMENT FOR THE MERITS OF THE EXEMPTIONS. To qualify for the exemptions referred to in articles 2., 4o., 11, 12 and 13 of this law, companies must prove that their assets represented in property, plant and equipment, are covered with earthquake insurance.
ARTICLE 15. CONTROL THE USE OF INCENTIVES TAX. The companies mentioned in article 2nd and 4th of this law, using tax it relates to incentives, should continue to exercise their economic activities in the area for at least a period equal to that they enjoyed those put forward incentives and used.
If you do not comply with the above obligation, they must pay the tax obligations no longer met by the use of incentives in ordinary terms of the Tax Code, with default interest and penalties as applicable and especially enshrined in the 7th article of this law.
Article 16. FRAUDULENT USE OF THE BENEFITS. Cases of fraudulent management for benefits under this law shall be punished under the terms stated in the Tax Code and the Penal Code.
Article 17. The tax on financial transactions by users of the financial system and the entities that comprise intended to cover expenditure incurred by the measures taken for reconstruction, rehabilitation and development in the given area decrees issued under the state of emergency declared by Decree 195 of 1999 will continue to apply under the terms and conditions of its creation, with the following content is ratified by this law:
is a national tax, temporary, which will rule between the first (1st.) January thirty-one (31) December two thousand (2000), by users of the financial system and the entities that comprise it.
The proceeds of this tax will fund the costs incurred in the measures taken for reconstruction, rehabilitation and development of the given area in decrees issued under the state of emergency declared by Decree 195 of 1999 || | by provision of this Act these expenses are considered social investment.
The chargeable event is the performance of financial transactions, through which resources are available deposited in checking or savings and turns checking accounts management; as well as payment of the net balance of interbank transactions, according to the regulations issued by the Government.
In accordance with the second paragraph of paragraph of Article 357 of the Constitution, the tax herein established shall be excluded from the participation corresponding to the municipalities in current income.
The cashier checks drawn by a non-banking credit establishment, under the resources of a savings account belonging to a client, shall be deemed to constitute a single operation, removal under which the check is issued and the payment.
Transfers between current accounts of the same credit institution shall be exempt from tax on financial transactions, when such accounts belong to one and the same holder.
Rate, accrual and tax base of the tax on financial transactions. The tax will have a flat rate of two per thousand (2 / 1,000), which will be caused at the time that the provision of resources subject to the financial transaction or payment of the net balance on interbank transactions occur.
The tax base is the total value of the financial transaction for which it has the resources and the net value of interbank transactions.
Taxable person. They will be subject to the tax users of the financial system and the entities that comprise it.
In the case of withdrawals of funds that manage collective savings, the taxpayer is the individual beneficiary saver individual retirement account.
Agents withholding tax on financial transactions. They act as withholding agents tax and are responsible for the collection and payment of the same, credit institutions where is the respective account and credit institutions issuing the cashier checks or make payments by crediting an account under current or savings accounts. In the case of payment of net balance of interbank transactions the withholding agent will be the entity supervised by the Banking Superintendency of Securities or making the payment.
Declaration and payment. The declaration and payment of tax on financial transactions must be made within the terms and conditions stipulated by the Government.
Shall be construed as statements presented when payment is not made simultaneously to your presentation.
Competition for managing transactions tax. The Directorate of National Taxes and Customs Administration tax on financial transactions referred to this law, which shall have the powers enshrined in the Tax Code for the investigation, determination, control, discussion, return and collection taxes within its jurisdiction. Likewise, the DIAN is empowered to apply sanctions embodied in the Tax Code, which are compatible with the nature of the tax, as well as those related to the quality of retention agent.
Use of resources generated by the tax on financial transactions. The revenues from the tax on financial transactions and their performance will be deposited in a special account of the National Treasury until they are appropriate in the General Budget of the Nation in the corresponding fiscal years his collection and subsequent. The Government will propose to Congress the incorporation of these revenues to the extent that local needs warrant, until exhausted its produced. Effective Jurisprudence
ARTICLE 19. TAXABLE OF IOF. Effective Notes
ARTICLE 20. RETENTION AGENTS IOF. Effective Notes
Previous legislation ARTICLE 21.
declaration and payment of IOF. Effective Notes
Previous legislation ARTICLE 22. ADMINISTRATION
IOF. Effective Notes
Article 23. EXEMPTIONS IOF. Effective Notes
ARTICLE 24. RETENTION AGENTS IOF OPERATIONS deposit account. Effective Notes
Previous legislation ARTICLE 25.
Previous legislation ARTICLE 26.
Previous legislation ARTICLE 27.
Article 28. The investment under Law 487 of 1998 of the so-called bonds of solidarity for peace, will be postponed as follows:
The second installment of investment to subscribe in the year 1999, ie seventy percent (70%) it must be canceled from October 2000, according to the decree issued for that purpose by the National Government. Payments should be held in 2000, 2001 will be held on the dates indicated by the Government for such purposes.
ARTICLE 29. RESOURCES ENVIRONMENT. In the allocation of resources for the environment of the National Royalties Fund, which corresponds to the particular area in article 1. of this law, it will give priority to funding projects aimed at preserving and protecting ecosystems located in the quake zone.
ARTICLE 30. PROPERTY TAX. the Codazzi are commanded to perform as a priority the lifting, training and cadastral updating all properties located in the municipalities indicated in article 1 of this law, giving strict application of the technical, social and economic methodology specified in the relevant legislation, especially Law 14 of 1983, 44 of 1990 and its regulatory developments. The deadline for ordered in this article will be December 31, 2002
ARTICLE 31. EFFECTIVENESS OF LAW. This law governs from its enactment and repeal the provisions that are contrary. MARIO URIBE ESCOBAR
The President of the honorable Senate of the Republic Manuel Enríquez Rosero
The Secretary General of the honorable Senate
BASILIO VILLAMIZAR TRUJILLO President of the honorable House Representatives
ANGELINO LIZCANO RIVERA Secretary General of the honorable House of Representatives
REPUBLIC oF COLOMBIA - NATIONAL GOVERNMENT
published and executed Given in Armenia, to August 8, 2000 || | PASTRANA ARANGO
ANDRES SANTOS CALDERON JUAN MANUEL
The Minister of Finance and Public Credit MARTHA LUCIA RAMIREZ
RINCON Minister of Foreign Trade