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DIAN REVENUE RULING

Free-trade zones regulation is preferential and has prevalence over other tax rules

Non-profit entities that are industrial users of a free-trade zone are subject to the same income tax rate as an industrial user

  

By means of its Revenue Ruling No. 22874 of August 24th 2017, the Colombian Tax Authority answered whether non-profit entity, which is an industrial user of a free-trade zone, could be subject to taxation at the same rate as industrial users of a free-trade zone according to article 240-1 of the Tax Code.

In this regard, the Tax Authority concluded that non-profit entities that are industrial users are subject to income tax at the rate established for industrial users of a free-trade zone as per article 240-1 of the Tax Code. The aforesaid, given the preferential and special nature of the rules applied to free-trade zones over other tax rules.