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This chapter provides an overview of Colombia’s tax regime, covering areas of particular interest to investors such as individual and corporate income tax, income tax exemptions, VAT and rates, investment incentives, and other investor considerations. This chapter contains a viewpoint from Jaime Vargas, Tax Managing Partner and International Tax Services Leader, EY Colombia.

The Ministry of Health and Social Protection is responsible for overseeing the Colombian health care system, dictating policy and promoting health care in the country. MinSalud has become one of the most progressive ministries in the government, and its policies on topics such as price control and biosimilars are pioneering for the region. The Statutory Health Law promises an expansion of services that opens up high-level treatment to 48m Colombians, and therefore opportunities to health care and pharmaceutical companies. This chapter contains an interview with Emilio Sardi Aparicio, Executive Vice-President, Tecnoquímicas.

Despite fiscal restraints, the government’s budget for education has stayed at consistent levels. However, with coverage expansion at all levels of education remaining a high priority, expenditure efficiency will be of the utmost importance. By strengthening financing mechanisms and access to early education, with a focus on rural areas and those most affected by the country’s civil conflict, the authorities aim to improve the chances of lower-income Colombians not only making it through primary school and high school, but also reaching tertiary education. Support for low-income Colombians to enrol and complete higher-education programmes has been a key aspect of government policy, and is especially important in reducing income disparities and social inequality.

Despite Colombia’s extensive natural beauty and bustling cities, its tourism industry has traditionally underperformed relative to its actual potential; however, international visitor arrivals rose by 70% between 2010 and 2015, contributing to the 17% increase in employment during those years. Overall, the coming years are expected to be marked by double-digit growth in tourism indicators. The devaluation of the peso, ongoing promotional efforts and the country’s enhanced profile provide a window of opportunity for Colombia to attract more tourists. To solidify the sector’s contribution to GDP, continued investment in infrastructure and the development of varied segments will be necessary. This chapter features an interview with María Claudia Lacouture, Minister of Commerce, Industry and Tourism.

The telecoms sector is adapting to the move from voice to data. Although this is set to affect operators’ financial results in the near term, rapid expansion of smartphones and 4G accessibility is set to enlarge the potential for new offers. Furthermore, the merger of different entities into a single regulatory body would simplify the rules for operators, ease procedures and remove the need to interact with a number of different watchdogs. In terms of IT, usage across Colombia, along with the deployment of the necessary infrastructure over several years, have created an environment in which the permeation of IT across business and society is well established, and is set to continue. As such, domestic conditions bode well for the continued expansion of the IT industry in the country over the medium term. This chapter includes an interview with David Luna, Minister of Information and Communication Technologies.

Despite the difficulties in securing long-term financing for research, Colombia’s innovation environment is starting to benefit from structural measures. Efforts to raise IT usage in companies and households is supporting innovation efforts and galvanising domestic entrepreneurs. Modernisation schemes targeting industrial clusters are helping to develop a culture of innovation within established firms. However, plans to boost expenditure on research and development (R&D) activities are falling behind stated objectives. As the support for entrepreneurship activities becomes more robust, linking it to national research activities remains a challenge. This chapter contains an interview with Marta Losada, President, Antonio Nariño University.