Key Benefits:
LEY 608 OF 2000
(August 8)
Official Journal No 44.129 of 15 August 2000
COLOMBIA CONGRESS
For which the Decrees 258 and 350 of 1999 are amended and added, proffered in the development of the economic emergency declared by Decree No. 195 of 1999, and other provisions are dictated.
DECRETA:
ARTICLE 1o. The affected zone. Determine as an area affected by the natural phenomenon of the earthquake of January 25, 1999, the territorial jurisdiction of the following municipalities:
Department of Quindio: Armenia, Buenavista, Calarca, Circassia, Cordoba, Filandia, La Tebaida, Montenegro, Pijao, Genova, Salento and Quimbaya.
Department of Caldas: Chinchina.
Department of Risaralda: Pereira, Dosquebradas, Santa Rosa de Cabal and Marseille.
Department of Tolima: Cajamarca and Roncesvalles.
Department of Valle del Cauca: Alcala, Caicedonia, Obando, Ulloa, Sevilla, La Victoria, Algeria, Bolivar and Barragan, corregimiento de Tulua, within the limits that this corregimiento had on January 25, 1999.
ARTICLE 2o. EXEMPTION FROM INCOME AND SUPPLEMENTARY. 134 of Law 633 of 2000. > They shall be exempt from income tax and supplementary, new companies, legal persons, which are physically constituted and located in the jurisdiction of the municipalities. In the previous article, between 25 January 1999 and 31 December 2005, and which have as their main social object, the development of agricultural, livestock, commercial, industrial, agro-industrial activities, style="text-decoration: line-through; ">services, building, for the export of movable personal property produced in the affected area, mining companies which do not relate to the exploration or exploitation of hydrocarbons, public service homes and complementary activities, tourism services, education, data processing, technology development programs approved by Colciencias, and health services.
The exemption that this article deals with will apply to the income that is obtained in the municipalities affected by the earthquake that is treated by the article 1or. of this law, in the development of the activities mentioned in the previous paragraph.
ARTICLE 3o. TERM OF THE EXEMPTION. For new companies, the exemptions contained in this law will govern for ten (10) years, counted from the year the company is located in the affected area. The exemptions set out here shall apply in accordance with 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. While the income tax exemption lasts, no presumptive income will be caused on the percentage of exempt income provided for each respective year.
ARTICLE 4. PRE-EXISTING COMPANIES. In the case of pre-existing companies, the exemptions will govern for ten (10) years, as long as the revenues of the respective company have decreased by thirty percent (30%) or more in 1999.
The percentages of exemption for pre-existing companies are the same as in the previous article.
ARTICLE 5o. In the case of commercial activities the exemption shall be granted, provided that they relate to movable property produced in the municipalities referred to in Decrees 195 and 223 of 1999, which are expenated to the detal and its physical delivery takes place within the jurisdiction of the municipalities.
ARTICLE 6o. DATE OF INCORPORATION AND INSTALLATION OF THE COMPANY. For the purposes of this law, a company is considered to be a company, on the date of the public deed of incorporation.
The company is understood to be installed, when it presents a memorial to the Administration of Taxation and Customs, in which it manifests the following:
-Intent to benefit from the benefits provided by the law.
-Economic activity to which you are engaged.
-Company Capital.
-Location of the physical or building site where you will develop the
economic competitiveness.
-Home address.
ARTICLE 7o. MINIMUM VALUE FOR TRANSACTIONS BETWEEN TAXPAYERS SUBJECT TO THE TAX BENEFITS WITH TIES. Transactions performed by persons enjoying the benefits referred to in Articles 3or. and 4or. of this law with persons who are economically bound to it must be at least to commercial values. Therefore, if they are performed at a lower value, for tax purposes it is understood that they were carried out by the aforementioned trade values.
ARTICLE 8o. REFORMS TO INCORPORATED ENTERPRISES. They are not considered as new companies, nor will they enjoy the benefits provided for in this law:
Companies that have been established prior to January 25, 1999, are the subject of statutory reform, or of a division or merger with other companies.
Companies that are subject to transfer from other regions of the country to one of the municipalities that the article is dealing with 1or. of this law. For this purpose it will be sufficient to show that 15% (15%) or more of the value of the fixed assets or current of the company installed in the affected area, were in use in some other region of the country as of January 25, 1999, situation which causes the benefit to be lost.
The violation of any of the situations described in the previous literals is punishable by the drawback of any tax benefit that will be obtained with default interest and a penalty will be paid to the two hundred percent. (200%) of the value of such benefits.
ARTICLE 9o. REGISTRATION OF TRANSACTIONS. Taxpayers who take advantage of this law, shall record in the accounts all transactions related to the regular rotation of their business and prove that they comply with the generate production in the affected area.
ARTICLE 10. REQUIREMENTS FOR THE EXEMPTION TO BE APPLIED EACH YEAR. Companies established in the affected area, for each taxable year in which they are eligible for the exemption from the income tax in question, must send to the Administration of Taxes and National Customs which correspond to your address or the main seat of your business, before 30 March of the year following the taxable year, the following documents and information:
Certification issued by the mayor of the respective municipality, in which the company or establishment object of the benefit is physically installed in the jurisdiction of one of the municipalities referred to in the article 1or. of this law.
Certification of the tax reviewer or public accountant, as appropriate, in which it is stated:
For startups:
-This is a new company established in the respective municipality,
ntre on January 25, 1999 and December 31, 2005.
-The date of initiation of the production period or phases
orresponding to the unproductive stage.
-The amount of the exempt income determined in accordance with what is established in
to this law.
These requirements will be verified by the respective tax administration and effective monitoring will be done to the legal compliance.
ARTICLE 11. PROFIT FOR SHAREHOLDERS OR SHAREHOLDERS. The shareholders, shareholders, members, members and the like shall be exempt from income tax and supplementary income, for income that is a dividend, equity, surplus, profit, receive from the companies provided for in this law, provided that such economic resources remain reinvested within the same undertaking for a term of not less than four (4) years, counted from their investment and for the same periods.
ARTICLE 12. REFUND OF SALES TAX PAID ON THE IMPORT OR PURCHASE OF CAPITAL GOODS. New legal persons who acquire or import capital goods consisting of machinery or equipment within the year following their installation, for be installed or used during the period of depreciation of the goods, as fixed assets of the income producing activity in the municipalities referred to in Article 1or. of this law, may request the refund or compensation of the sales tax paid on its importation or acquisition, provided that it is not carried as cost, deduction or tax deducted and it is shown that the same are operating in the zone indicated in the article 1or. of this law and in accordance with the regulations that for the purpose the National Government will issue, for which they shall submit the application within six (6) months after the date of acquisition of the capital goods. In the case of pre-existing companies, they shall be entitled to the return referred to in this article on capital goods that they acquire or import within the year following the validity of this law.
ARTICLE 13. TARIFF RELIEF. Prior to the compliance with the provisions of the international treaties, a tariff exemption will apply to capital goods not produced in Colombia, imported by persons located in the municipalities mentioned above. in the Decrees 195 and 223 of 1999 in the twelve (12) months following the date of their installation, provided that the imported goods are intended exclusively for use in their production activity within the the territorial jurisdiction of those municipalities, during the period of depreciation of the good, in the I have to say that.
This franchise will only apply to imports that are made until December 31, 2005.
PARAGRAFO. The Ministry of Foreign Trade will draw up a list of capital goods not produced in Colombia, in the form that the regulation points out.
ARTICLE 14. SPECIAL REQUIREMENT FOR THE PROVENANCE OF THE EXEMPTIONS. To be entitled to the exemptions referred to in Articles 2o., 4o., 11, 12 and 13 of this law, companies must credit that their assets represented in real estate, machinery, and equipment are protected against earthquake insurance.
ARTICLE 15. CONTROL OVER THE USE OF TAX INCENTIVES. The companies that are dealing with article 2or and 4or this law, that use the tax incentives to which it is (a) it shall continue to pursue its economic activities in the area at least for a period equal to that enjoyed by the incentives invoked and used.
If they do not comply with the above obligation, they will have to pay the tax obligations that they have ceased to comply with the use of the incentives in the ordinary terms of the Tax Statute, with the moratorical interests and penalties to be imposed. place and especially the one enshrined in article 7or this law.
ARTICLE 16. FRAUDULENT USE OF BENEFITS. Cases of fraudulent handling to obtain benefits set forth in this law, shall be sanctioned in the terms indicated in the Tax Statute and the Criminal Code.
ARTICLE 17. The tax on financial transactions by the users of the financial system and the entities that make up the financial system to finance the expenses incurred by the measures taken to the reconstruction, rehabilitation and development of the area determined in the decrees dictated by the State of Exception declared by Decree 195 of 1999 will continue to be applied in the terms and conditions of its creation, with the following content to be ratified by this law:
It is a national tax, of a temporary nature, that will govern between the first (1o.) of January and the thirty-one (31) of December of the year two thousand (2000), in charge of the users of the financial system and the entities that make up it.
The production of this tax will be used to finance the expenses incurred by the measures adopted for the reconstruction, rehabilitation and development of the area determined in the decrees dictated by the State of Exception declared by Decree 195 of 1999.
By provision of this Law these expenses are considered as social investment.
The operative event of the tax is the realization of the financial transactions, through which resources are available deposited in current accounts or savings accounts and the checks of management checks; as well as the payment of the balance net of interbank transactions, according to the regulation issued by the National Government.
Pursuant to the second paragraph of the paragraph of Article 357 of the Political Constitution, the tax here established shall be excluded from the participation of the municipalities in current income.
Management cheques drawn by a non-bank credit facility, under the resources of a savings account belonging to a customer, shall be deemed to constitute a single transaction, the withdrawal by virtue of which the check and payment of the same.
Transfers between current accounts of the same credit establishment shall be exempt from the tax on financial transactions where those accounts belong to the same and the sole holder.
Rate, causation and taxable base of the financial transaction tax. The tax will have a single tariff of two per thousand (2 /1,000), which will be caused at the time the provision of the resources covered by the financial transaction or the payment of the net balance in the interbank transactions takes place.
The taxable base will be the total value of the financial transaction for which the resources are available and the net value of the interbank transactions.
Liabilities subjects. The users of the financial system and the entities that make up the tax will be subject to the tax.
When it comes to withdrawals of funds that manage collective savings, the taxable person will be the individual saver beneficiary of the individual account withdrawal.
Financial Transaction Tax Retention Agents. They will act as tax retainers and will be responsible for the collection and payment of the tax, the credit institutions in which the respective account is located, as well as the credit institutions that issue the checks management or make payments by means of payments in respect of current accounts or savings accounts. In the case of payment of net balance of the interbank transactions, the holding agent shall be the entity monitored by the Banking or Securities Superintendency that makes the payment.
Statement and payment. The declaration and payment of the financial transaction tax must be made within the deadlines and conditions specified by the National Government.
Statements shall be construed as not to be submitted when the payment is not made at the same time as the presentation.
Competition for the administration of the tribute to the transactions. The administration of the tax on financial transactions referred to in this law, for which it will have the powers enshrined in the Tax Statute for the investigation, is the responsibility of the National Tax and Customs Directorate. determination, control, discussion, refund and collection of the taxes of your competition. Likewise, the DIAN will be empowered to apply the sanctions enshrined in the Tax Statute, which are compatible with the nature of the tax, as well as those relating to the quality of the withholding agent.
Using the resources generated by the financial transaction tax. The tax collections of the financial transactions and their income will be deposited in a special account of the National Treasury Department until they are appropriate in the General Budget of the Nation in the fiscal vigencies. corresponding to their collection and subsequent ones. The Government will propose to the Congress of the Republic the incorporation of these revenues to the extent that local needs so advise, until their production is exhausted.
ARTICLE 18. 134 of Law 633 of 2000. >
ARTICLE 19. TAXABLE PERSONS OF IOF. 134 of Law 633 of 2000. >
ARTICLE 20. IOF RETENTION AGENTS. 134 of Law 633 of 2000. >
ARTICLE 21. DECLARATION AND PAYMENT OF THE IOF. 134 of Law 633 of 2000. >
ARTICLE 22. ADMINISTRATION OF THE IOF. 134 of Law 633 of 2000. >
ARTICLE 23. EXEMPTIONS FROM IOF. 134 of Law 633 of 2000. >
ARTICLE 24. IOF RETENTION AGENTS IN DEPOSIT ACCOUNT OPERATIONS. 134 of Act 633 of 2000. >
ARTICLE 25. 134 of Law 633 of 2000. >
ARTICLE 26. 134 of Law 633 of 2000. >
ARTICLE 27. 134 of Law 633 of 2000. >
ARTICLE 28. The investment provided for in Law 487 of 1998 of the so-called solidarity bonds for peace will be postponed as follows:
The second share of the investment to be signed in 1999, that is, seventy percent (70 percent), must be cancelled from October 2000, according to the decree issued for this purpose by the National Government. The payments to be made in the year 2000 will be made in 2001, on the dates indicated by the National Government for such purposes.
ARTICLE 29. RESOURCES FOR THE ENVIRONMENT. In the allocation of the resources for the environment of the National Royalty Fund, which corresponds to the area determined in the article 1or. Priority will be given to the financing of projects aimed at the preservation and protection of ecosystems located in the quake zone.
ARTICLE 30. PREDIAL TAX. The Geographic Institute Agustin Codazzi is ordered to carry out in priority the lifting, formation and cadastral updating of all the buildings located in the municipalities indicated in the article 1or this law, giving strict application to the technical, social and economic methodology specified in the relevant legal norms, especially Laws 14 of 1983, 44 of 1990 and its regulatory developments. The maximum period for doing what is ordered in this article will be December 31, 2002
ARTICLE 31. " VALIDITY OF THE LAW. This law governs from its promulgation and repeals the provisions that are contrary to it.
MARIO URIBE ESCOBAR
The President of the honorable Senate of the Republic
MANUEL ENRIQUEZ ROSERO
The Secretary General of the honorable Senate of the Republic
BASILIO VILLAMIZAR TRUJILLO
The President of the Honourable House of Representatives
ANGELINO LIZANO RIVERA
The Secretary General of the Honourable House of Representatives
COLOMBIA-NATIONAL GOVERNMENT
PUBLISH AND EXECUTE
Given in Armenia, 8 August 2000
ANDRES PASTRANA ARANGO
JUAN MANUEL SANTOS CALDERÓN
The Minister of Finance and Public Credit
MARTHA LUCIA RAMIREZ DE RINCON
The Minister of Foreign Trade
