Investors and donors have benefited from the tax benefit offered for those who bet on projects of the orange economy.
The Law 2155 of 2021 made modifications to tax benefit for companies of orange economy that will take effect in the taxable year 2022.
Dane figures cut to September this year indicate that the reactivation of the creative and cultural sector of the country is a fact, since 100% of the jobs in the sector have been recovered.
To give further impetus to the above, the The national government seeks to generate new tax incentives for those who support the sustainable development of companies in the orange economy.
Tax benefits for those who invest and donate resources to projects of the orange economy
La Dian, in a Press release, has reported that Investors and donors have contributed, between December 2020 and July 2021, more than 8,000 million pesos to orange economy projects, which have been approved by public calls and have benefited when complying with their national tax obligations.
The entity explains that the above is part of what is regulated through Decree 697 of 2020, in which the national government determined that those who make investments or donations in creative economy projects obtain as a tax incentive a deduction in the income tax corresponding to the 165% of the value invested or donated for the taxable period in which said action is carried out.
Who can receive the tax benefit?
Dian explains that both natural and legal persons, regardless of whether or not they are part of the orange economy, who are interested in promoting this industry will be able to obtain the optional benefit in tax terms.
The activities of the sectors contemplated in the creative and cultural economy model that may be the object of investment or donation are: visual arts, performing arts, tourism and cultural heritage, education, gastronomy, handicrafts, publishing, phonography, audiovisual, digital media, Design and Advertising.
The projects that may receive these benefits will be those approved by public calls, which are carried out by the Ministry of Culture to select the projects and thus channel the resources.
When the project has a duration of more than one year, it must be endorsed annually, without it being necessary to compete again, simply the fulfillment of the project must be accredited.
The resources are managed in a trust or autonomous patrimony on behalf of the project, which guarantees that the fiduciary entity certifies the expenditure of resources exclusively in the items of the approved budget.
Certificate that protects the tax incentive
When making the investment or donation a certificate is generated that covers the tax deduction incentive, which is negotiable in the market and will specify, among other information, the value of the investment or donation.
The certificates are issued by the Ministry of Culture, an entity that informs the Dian of the issuance of the certificates on a quarterly basis, which are valid for two years from their effective delivery.
If the investor or donor carries out any negotiation of the title, they will no longer be able to apply the deduction on their income tax. In this case, only the acquirer of the investment or donation certificate can make use of the deduction.
Changes introduced by the tax reform to this tax benefit
Article 44 of the Social Investment Law 2155 of 2021 makes some modifications to the tax benefit for orange economy companies, which will take effect from taxable year 2022.
First, the The term of exempt income from orange economy activities was reduced, from seven to five years. In addition, the requirement to establish and start economic activity before December 31, 2021 It was extended until June 30, 2022.
For its part, article 65 of validity and repeal of Law 2155 of 2021 repeals literal “f” of numeral 1 of article 235-2 of the ET, therefore The minimum investment amount requirement is eliminated to access this tax incentive that corresponded to 4,400 UVT ($ 159,755,200, applying the UVT of the year 2021).
Finally, it is worth mentioning that on December 24, 2021 the Ministry of Finance issued its Decree 1843 to modify articles 1.2.1.22.47, 1.2.1.22.51, 1.2.1.22.52, 1.2.1.22.53, 1.2.1.22.54 and 1.2.1.22.56 of DUT 1625 of October 2016, regulating of that It forms the changes that articles 44 and 65 of Law 2155 of September 14, 2021 introduced to article 235-2 of the Tax Statute -ET-, related to the benefits of the orange economy (see our analysis News in exempt income from the orange economy were regulated to learn more about it).
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