Tax Benefit Department of Valle del Cauca

This departmental provision transitorily adds some articles to the Tax and Revenue Statute of the Department of Valle del Cauca, Ordinance No. 474 of 2017, which establish the following:

Tax benefit: Discount of 24 points equivalent to a rate of 24% (the current rate is 48%), when it is verified that the producer responsible for the tax acquired the agricultural raw material necessary for its manufacture from small and medium producers of the Department of Valle del Cauca, who are part of the Contract Agriculture program with the accreditation of the corresponding requirements.

Conditions:

• The goods taxed by the excise tax on beers and siphons on which the benefit is granted must be consumed in the Department of Valle del Cauca.
• The agricultural raw material necessary for their manufacture must be acquired from small and medium producers of Valle del Cauca who have no economic link with the manufacturer, through the Contract Agriculture Program.
• The petitioners of the incentive must operate within the Contract Farming Program and not have any economic link with the producer.
• The Business Plan must be approved by the Manager of the Special Administrative Unit of Taxes, Revenue and Tax Management, the Secretary of Rural Development, Agriculture and Fisheries and the Secretary of Economic Development and Competitiveness.
• The incentive is granted in the corresponding fiscal year and will be valid for 10 years.
• The good on which the incentive is granted may not have been previously marketed in Valle del Cauca. In no case it applies to existing products.
• The good must contain at least 30% of the total ingredients of the product, of agricultural raw material grown within the Valle del Cauca.

Request:

It must be submitted in writing to the Special Administrative Unit of Taxes, Revenue and Tax Management of the Department of Valle del Cauca.

Requirements:

• Certificate of existence and legal representation of the producer responsible for the tax subject to the incentive.
• Business Plan for the manufacture of taxed products, which must contain among others: i) executive summary of the project, with general description, objectives, goals, justification, duration and impacts; ii) detail of the investment project of raw material purchases, location of the project, schedule and social benefit for the area and the Department of Valle del Cauca; and, iii) strategy to control the substitution effect of the portfolio of products subject to the tax at full rate for products benefited by the incentive.
• Accreditation of farmers to the contract farming program.

Information to be submitted once the benefit has been granted:

• Purchase follow-up report, to be submitted within 2 months from the date the incentive is granted and annually thereafter.

Monthly product identification reports