The property payment in Bogotá is frozen: Council approved the “Marshall Plan” to reactivate the economy

This Saturday the Bogotá Council approved project 315 of 2020 known as the ‘Marshall Plan’ and presented by the Mayor of Claudia López on August 12. Among the approved is will freeze the property payment for more than 2.6 million owners and the ICA will be reduced up to 25%

In the session the discussion and voting of the articles of the project took place. The first voting group included the articles: 1, 2, 4, 8, 12, 13, 14, 15, 16, 17, 18, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, which were approved with 43 votes in favor, except for articles 13 and 14 with a negative vote from councilor Carlos Carrillo. Articles 25, 26, 27, 28, 29, 30, 31 and 312 with a negative vote of councilor Diego Laserna and articles 34, 36 and 37 voted negatively by councilor Yefer Vega.

The voting continued with those articles that the councilors asked to vote for and that had no proposals presented: article 3 was approved with 43 votes in favor. Articles 9, 10 and 11 voted in group were approved with 36 in favor and 6 against. Article 19 was approved with 38 votes in favor and 4 against.

For its part, Article 6 was approved with 31 votes in favor and 10 against. Article 7 presented a surprise proposal presented by Councilor Carolina Arbeláez and rejected with 30 votes against and 12 in favor., the article was approved with 30 votes in favor and 11 against. Finally, Article 39 of validity was approved with 38 votes in favor.

Thus, the 39 articles presented by Claudia López were approved and the ‘Marshall Plan’ now passes sanction by the mayor of Bogotá.

What is the ‘Marshall Plan’?

The project dictates: “Incentives are established for economic reactivation, with respect to unified property taxes and industry and commerce, product of the epidemiological situation caused by the Coronavirus (COVID-19), the unified tax is adopted under the Simple Taxation Regime in the Capital District, its consolidated rates are set, benefits are established for business formalization and other measures are dictated in tax and procedural matters ”.

The mayor of Bogotá explained that this is the draft tax incentives agreement for mark the economic reactivation of Bogotá in the coming years.

Real freezing of the property tax; extension of the installment payment system for non-residential properties (restaurants, hotels, warehouses, premises, offices, universities), as well as for residential properties owned by legal entities during 2021, these are just some of the measures included in this draft agreement.

With the initiative approved by the Council, 100% of the 2.6 million properties that Bogotá has would have a freeze in the payment of the Property, and you can also have the option of payment in four equal installments, without interest.

The Bogotá Mayor’s Office project also plans to grant a 100% exemption in the Property for theaters and museums for the years 2021 and 2022, and 50% for the following years until 2030.

Likewise, it grants a tax discount to the properties of strata 1, 2 and 3 that had an overwhelming growth in the tax in 2018 and 2019, due to changes in built areas.

Another measure that seeks to alleviate the taxpayers’ pocket has to do with the Industry and Commerce tax (ICA), which includes tax discounts for companies that have had economic losses in 2020. The discount offered is between 5% and 15% of the tax charged, according to the percentage of reduction in your income.

Incentives approved by the Council include the voluntary adoption of the Simple Tax Regime (RST), which will allow many companies to reduce their tax burden, facilitate the payment of their taxes and, many others, formalize. The above, with the benefits that this represents in terms of job creation and access to credit.

The District Administration will assume a percentage of the cost of registration and renewal of commercial registration for entrepreneurs that are formalized from 2021, and until 2026, by registering in the Tax Information Registry – RIT or in the Simple Taxation Regime.

Learn about the articles approved today of the ‘Marshall Plan’