Pursuant to articles 70 and 71 of the Colombian Constitution the government has the duty to promote not only the scientific and technological knowledge, but also the entities or persons that are dedicated to these activities. In this connection, Law 29 of 1990 rules all the general aspects for the promotion of these activities (i.e. tax exemptions, deductions or other tax benefits). This law conditions the granting of the exemptions, tax deductions and other tax benefits to the technological and scientific activities that are recognized by law, previous approval from COLCIENCIAS.
1. Tax Incentives For The Promotion Of Technological And Scientific Activities:
According to the Tax Statute, the incentives to promote scientific and technological activities are the following:
- Tax Deductions for donations or investments to technology and science.
- VAT exemptions for the importation of equipments or other elements by educational entities or research centers.
1.1. Tax Deductions For Investments
Entities or individuals investing directly or trough Research Centers, Technological Development Centers (incorporated as non profit organization or Research Centers and Groups and that are approved by COLCIENCIAS) in research projects or in scientific or technological activities certified by the National Council of Science and Technology as such; or in projects recognized by the Educational Ministry as such, will have the right to deduct from their income tax, 125% of the value invested in the a certain period.
The investment projects will have to be developed in strategic areas for the country (i.e. basic science, social and human science, industrial development, environment, education, health, telecommunication, biotechnology, energy). This deduction cannot exceed 20 % of the liquid income before the deduction of the investment value.
2. VAT ExemptionThese incentives are only applicable to import s of equipment or other elements made by educational entities or research centers for the purpose of scientific and technological research approved by the National Planning Direction.
- Definitions:
- Research Programs, Research Projects And Investment In Scientific And Technological Research:
2.1. Scientific And Technological Research:
Pursuant to Article 6 of Decree 2076 of 1992, scientific and technological research is research that will create knowledge, inventions, the improvement of products and processes, or that will improve the productivity or the productivity processes.
- Research Programs
Are the projects and other activities that are coordinated and structured to create science or develop technology and which result satisfy the global, national development.
- Research Project
Is the one that resolves a specific scientific or technological problem in a term with specific resources and results. It comprehends specific task, experiments and activities.
- Investment in Scientific and Technological Research
All the necessary expenses to do a Research project.
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