The main telecommunications trade unions and associations in the US sent a harsh letter to the government of that country warning “serious concerns” over recent tax reform bill which contains new requirements for companies that invest and export to Colombia.
“Bill 118 of 2022 would negatively impact US exports of goods and services and would contravene the letter and spirit of the Free Trade Agreement between Colombia and the United States. in various ways (…) We urge you to immediately engage with your Colombian counterparts to ensure that it is not approved in its current form,” the document says.
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The letter was sent to Janet Yellen, Secretary of the Treasury of the United States; Gina Raimondo, Secretary of Commerce; Katherine Tai, commercial representative of that country; and with a copy to Luis Gilberto Murillo Urrutia, Ambassador of Colombia to the United States. Signed by: ACT | The App Association, American Chemistry Council, Coalition of Services Industries, Computer & Communications Industry Association, Express Association of America, Information Technology Industry Council, National Foreign Trade Council, Silicon Valley Tax Directors Group, TechNet, Travel Technology Association, US Chamber of Commerce and United States Council for International Business.
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Among the questions, it is indicated that the tax reform “considers imposing taxes on non-residents solely on the basis of having a deliberate and systematic interaction with users or clients in Colombia, taking into account a certain amount of gross income, the number of Colombian clients or users, or use of prices or acceptance of payments in the local currency”.
First, as currently drafted, Articles 48 and 52 would potentially apply to all US companies that ship merchandise to Colombia, regardless of their physical presence in Colombia. And they point out that, therefore, taxes on US companies that sell goods to Colombia would nullify the tariff exemption provided to US exports.
If enacted, it would put US companies that are active in the listed industries at a competitive disadvantage relative to non-US competitors active in Colombia.
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In addition, they warn that taxes on digital services directly contravene the “rollback and moratorium” of unilateral tax measures during the negotiations of the Organization for Economic Cooperation and Development (OECD).
“We also note that any tax under the proposal, whether through withholding or filing a tax return, if enacted, would put U.S. companies that are active in listed industries at a competitive disadvantage relative to non-US competitors active in Colombia”, they add.
In another section they point out that the changes proposed in the reform “will harm US SMEs and their employees, who already face a series of challenges, including high levels of inflation.”
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For all of the above, the unions and trade associations asked the US government to ask Colombia “to consider this project and launch a consultation with interested parties, including multinational companies that do business in Colombia” and that the terms and conditions of the Free Trade Agreement between Colombia and the United States are taken into account.
ELTIEMPO.COM
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