X

INCOME TAX RATE OF 9% FOR HOTELS

logo

INCOME TAX RATE OF 9% FOR HOTELS

Income tax for the hotel sector

The income tax rate of 9% would apply for 20 years for new hotels and for 10 years for hotels restored or expanded

 

The Financing Law bill establishes 9% preferential tax rate for income derived from hotels that are built within the following 10 years as from the enactment of the law. The tax rate will apply for 20 years.

The preferential tax rate will also apply to the hotels that are part of a restauration or expansion project, as long as the project value is higher than the 50% of the value of the building, pursuant to section 90 of the Colombian Tax Code. Municipal authorities must approve the restauration or expansion in order to obtain the preferential tax rate.