Uncertainty over the tax benefits project for science and technology

After the Comptroller General of the Republic warned about a possible deficit in the financing of educational loans granted by Icetex and that could affect access to higher education for more than 330,000 students; Now a new chapter is opening due to lack of financing for science, technology and innovation projects.

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Scientists, entrepreneurs, researchers and businessmen from different sectors are in uncertainty because The National Government has not presented the call for Tax Benefits for Science, Technology and Innovation Projects for the period 2024-2025, despite the fact that the budget for this program had already been approved. This initiative, which is essential for companies to carry out projects that impact the scientific, technological and economic development of the country, seems that for the first time in more than 30 years it will not be carried out.

According to the Ministry of Science, Technology and Innovation, these benefits are a “instrument developed by the National Government that seeks to be an incentive for the development of science, technology and innovation (CTeI) projects by companies in alliance with actors recognized by the Ministry, granting investors and/or executors discounts”.

Although MinCiencias launched the call on May 27, 2024 through a public statement with the objective of “recognize the important work of scientists, researchers and entrepreneurs who contribute to the construction of a knowledge society”, Six months have already passed without the necessary resolution being issued to apply for the projects.

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This has led to businessmen, academics, scientists and other actors having dedicated time to devising and structuring their proposals, but the lack of resolution has prevented MinCiencias from enabling the platform to upload them, evaluate them and, if approved, access them. the benefits offered.

For example, investments made by Micro, Small, Medium and Large companies in projects qualified as CTeI will be able to access a tax credit worth 50% of the investment made and applicable for the compensation of national taxes..

Furthermore, if these companies have current tax credits exceeding one thousand UVT (1000 UVT) for investments in CTeI projects, they may request Tax Refund Titles -TIDIS for the value of the tax credit.

It is important to highlight that the above is supported by article 256-1 of the Tax Statute and requires a clear response from the Ministry of Finance and the Superior Council of Fiscal Policy -CONFIS- regarding the status of the funds in the call.

Taking into account the seriousness of the situation and in the face of the silence of the Ministry of Finance, the Ministry of Science, Technology and Innovation and the National Government; Various senators, such as David Luna, have highlighted through social networks the impact that this would generate for the Colombian business community:

“Until 2022, the budget to support the MinCiencias mechanism of tax benefits for investments in research, development and innovation had a growth trend that was maintained for more than 10 years. 2.1 billion pesos were allocated for the call in 2022, positioning Colombia as a regional leader in investment incentives. Under the current Government, this trend was broken: in 2023 only 800 billion were allocated, and for 2024 the budget is uncertain”.

(Here: Ricardo Bonilla highlights the decrease in inflation among his achievements in Minhacienda).

For his part, Senator Alfredo Rafael Deluque Zuleta, indicated in a statement that “It is essential that the Superior Council of Fiscal Policy -CONFIS- immediately defines the maximum tax deduction quota and that the MinCiencias and MinHacienda work in a coordinated manner to overcome the bureaucratic stagnation. Opening the call before the end of the year is not only a necessity, but an obligation to guarantee the future of science and technology in the country.”.

It is worth emphasizing that companies have already spent more than 11 months of execution allocating money, time and human resources. This last point is of utmost importance, since these are technologically based, disruptive projects that have a measurable impact on society; Companies have had to hire qualified labor with knowledge in certain areas, very specific skills and extensive experience.

For now, the Colombian business community, which has been working on these projects since the beginning of the year, calls on the National Government to enable the application process, as it has been carried out constantly over the last decades.

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