The final report of the Committee of Experts for Tax Equity and Competitiveness in more than 200 pages makes a diagnosis of the current tax system and the settings you need. Given that the charges are poorly distributed and that the structure is complex, one of the main proposals is to simplify taxes for individuals and businesses, eliminating taxes recently created as Cree, Iman, Imas, and wealth, but leaving a single tax income and expanding the base.

Meanwhile, General proposes an increase of VAT from 16 to 19 percent and reduce the list of goods excluded from this tax. It also includes putting pay to non-profit entities and raising taxes on cigarettes , liquor and gasoline.

FAREWELL TO CREATE, income and wealth: companies would pay to single tax

Diagnosis for companies is not encouraging: there is a great disparity in treatment between sectors and companies, few paid and the weight is greater for those who do not have benefits of free zones, legal stability contracts or significant exemptions.

Faced with the loss of That companies have had this situation, the Commission notes that taxation companies should be simpler and removing disincentives to investment and growth.

In that sense, is to eliminate Cree and surtax, income tax and complementary and heritage (wealth) and create a single tax. This would be The Business Profits Tax (IUE), which would be a flat rate of between 30 and 35 percent, depending on the analysis made by the Government on the issue.

That tax would be based on accounting Profits are calculated using International Financial Reporting Standards (IFRS), which are already in the process of adoption by Colombian firms. The idea is to provide procedures for businesses and give more certainty to entrepreneurs, it allows for uniform treatment and also restrains the use of exemptions, deductions and other related revenue generation mechanisms.

Here, the Commission recommends that only deductable taxes paid abroad, 20% of the value of investment in research, development and innovation and 30% of donations to non-profit companies.

Another approach is to raise the


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