Incentives for Innovative Companies, Should Bill Be Approved.

Before the House of Representatives, Bill 022 of 2016 was filed on August 1, 2016, which aims to create tax incentives for small and medium-sized enterprises specialized in the development of information technologies. For this purpose, small and medium-sized enterprises specialized in the development of information technologies are understood as "those legal entities whose exclusive corporate purpose is the design, development, production, sale, commercialization, or licensing of new information technologies developed in Colombia, whose staff does not exceed 50 workers, whose total assets do not exceed 5,000 current legal monthly minimum wages, and which in the immediately preceding year obtained total gross income from their economic activity equal to or less than 5,000 current legal monthly minimum wages"[1].

Likewise, the aforementioned bill specifies information technologies as "those that include the development of software, applications, mobile applications, and/or hardware. The development of hardware refers to the manufacture of devices that serve as a means for transmitting information such as computers, tablets, mobile devices, remote controls, and servers"[2].

Thus, Bill 022 aims to provide tax benefits, such as the generation of exempt income for a term of 30 years, for those small and medium-sized enterprises specialized in the development of information technologies that commence their economic activity within 10 years following the effective date of this law, for the design, development, production, sale, commercialization, or licensing of new information technologies developed in Colombia.

For the aforementioned exemption to apply, the new information technology being developed must be covered by a new patent registered with the Superintendence of Industry and Commerce, and must have a minimum content of national scientific and technological research certified by the National Council of Tax Benefits in Science, Technology, and Innovation or whoever acts in its stead.

Additionally, those companies that meet the parameters to obtain these benefits will not be subject to withholding at source from the start of their economic activity, that is, from the date of registration in the commercial registry of the corresponding chamber of commerce, as long as their income is considered exempt.

Finally, this initiative seeks to encourage the development of technology-based platforms and the development of new technologies in our country.