The Treasury Department has launched a public consultation on a draft decree to amend Decree 1625 of 2016 on tax matters, envisaging a range of conditions and procedures to rate mega investment plans by the Ministry of Trade, Industry and Tourism in order to conclude certain tax stability contracts. This means that when a project is classified as a mega investment, it will be included in a special tax regime, involving special income tax rates, exemption from wealth tax and certain conditions for calculating tax on dividends, typified in the recently sanctioned Economic Growth Law. Interested parties have time to submit comments until February 7, 2020 here. 

The special tax regime for mega investments will be available for private citizens and legal entities investing in property, plant and equipment in an amount equal to or greater than USD 316,244,296.88 for 5 years. They must also provide at least 400 new direct jobs to develop industrial, commercial and/or service activities. Investments in sectors with a high technological component, emerging technologies and electronic commerce, must create at least 250 new direct jobs. The mega-investors may start creating new jobs and making new investments once the Ministry of Trade, Industry and Tourism has acknowledged their mega-investment status, which may occur before 1 January 2024.

Likewise, the regulation states that the industrial users of goods and services or the industrial users of services working in free trade zones may have access to the special tax benefit for mega investments. To do so, they must fulfil the requirements to access the income tax regime for mega investments, in addition to the sales tax -VAT- and customs free zone regime.