Orange economy companies are legal entities that pay income tax in the ordinary regime, whose main office is located in Colombian territory, and whose corporate purpose is focused on the development of technological industries in added value and creative activities.
These companies are entitled to a tax incentive for exempt income if, in addition to meeting the conditions which will be set out at once, they were incorporated and started their economic activity before June 30, 2022.
Once it has been verified that the company is indeed developing an orange economy activity, it should be verified that the company also meets the following requirements: (i) have its main establishment in the territory; ii) be legally incorporated; (iii) have a gross annual tax income of less than (80,000) UVT, equivalent to 3,040,320,000 COP in 2022; (iv) be registered in the Single Tax Register as a taxpayer under the ordinary income tax system; (v) have an investment amount of 4,400 UVT – 167,217,600 COP in 2022 – within a maximum period of 3 taxable years; and (vi) respect the minimum employment amounts which vary between 3 and 8 employees depending on the company’s gross tax income.
However, once all the requirements have been verified, an application for qualification of the investment project must be submitted virtually to the orange economy commission of the Ministry of Culture. If compliance with the aforementioned requirements is verified, the Minister responsible for culture issues the administrative act of compliance, after prior notice from the Orange Economy Commission, within thirty (30) working days following the date of presentation of the project. .
Finally, we suggest that you take into account our previous publications on the orange economy, in order to expand the information on the conditions required to be classified as an orange economy company and to have access to the exempt income advantage, which can be consulted on our website https://phrlegal.com/novedades-phr/, called:
The deadline for accessing the tax advantage of exempt income for companies in the orange economy has been extended! – What is the orange economy and what are its advantages? – Partial and full inclusion activities that fall within the Orange Economy concept – Conditions for accessing the Exempt Income Incentive for Orange Economy businesses – How do I request access to the Orange Economy advantage of exempt income for businesses in the orange economy?