Orange economy companies are those legal entities that pay income tax in the ordinary regime, with their main place of business in Colombian territory, and corporate whose purpose is focused on the development of technological value-added industries and creative activities.
These companies are entitled to a tax incentive for exempt income if, in addition to meeting the requirements that will be set forth blow, they have been incorporated and started their economic activity before June 30, 2022.
Once it has been verified that the company indeed develops an orange economy activity, it will be necessary to verify that the company also meets the following requirements: (i) to have its main place of business within the territory; ii) to be legally incorporated; (iii) to have an annual fiscal gross income of less than (80,000) UVT, equivalent to COP 3,040,320,000 in 2022; (iv) to be registered in the Single Tax Registry as a taxpayer of the ordinary income tax regime; (v) to have an investment amount of 4,400 UVT – COP 167,217,600 in 2022- within a maximum term of 3 taxable years; and (vi) to comply with the minimum employment amounts that range between 3 and 8 employees depending on the gross fiscal income of the company.
However, once all the requirements have been verified, a request for qualification of the investment project must be virtually submitted to the Orange Economy Committee of the Ministry of Culture. If the compliance with the aforementioned requirements is verified, the Minister of Culture issues the administrative act of conformity, with the prior opinion of the Orange Economy Committee, within thirty (30) business days after the date of presentation of the project.
Lastly, we suggest you to take into account our previous publications on the orange economy, in order to expand the information on the requirements to be classified as an orange economy company and to have access the exempt income benefit, which can be consulted on our website https://phrlegal.com/novedades-phr/, called:
The deadline to access the tax benefit of exempt income for orange economy companies is extended! What is the orange economy and what are its benefits? – Partial and total inclusion activities that fit into the orange economy concept – Requirements to access the exempt income incentive for orange economy companies – How do I apply to access the exempt income benefit for orange economy companies?