Specialized software and technology, the perfect combination for industry growth

11 August 2020
The use of technology has become imperative for the continuity of many industries during the pandemic, particularly in sectors such as fintech, telemedicine, cybersecurity, e-commerce, agritech and blockchain. In other sectors such as tourism and manufacturing, the use of drones, robotics, and virtual tours have also facilitated work in times of social isolation.

The use of technology has become imperative for the continuity of many industries during the pandemic, particularly in sectors such as fintech, telemedicine, logistics, digital government, mobile apps, online education, cybersecurity, e-commerce, virtual and augmented reality, agritech, blockchain, Internet of Things, and artificial intelligence. In other sectors such as tourism and manufacturing, the use of drones, robotics, and virtual tours have also facilitated work in times of social isolation.

In the case of Colombia, technological development has experienced significant breakthroughs. Under the Digital Transformation public policy, the government approved document CONPES 3975 in order to promote Colombia’s competitiveness and efficiency in the public sector, the reduction of obstacles in adopting technology, public and private digital innovation, the strengthening of human capital, and the creation of favorable conditions for the country to seize the opportunities and face the challenges of the Fourth Industrial Revolution (4IR).

Colombia has similarly rolled out the 2018-2022 ICT Plan: "The Digital Future belongs to everyone". This strategy is based on four pillars of development, where the Internet will become an equity tool that will help to close the digital gap in both rural and urban areas, expand coverage and access to the network, and improve the speed and quality of services through connectivity and its productive use.

Furthermore, the ICT Modernization Law creates conditions to encourage private investment, create legal stability, and facilitate the deployment of high-cost infrastructure. It also simplifies and contributes to the international standards of the sector’s institutional and regulatory framework and solidifies public television and radio.

Likewise, Colombia provides incentives for investments in Research, Technological Development, and Innovation. The value of the investments made in the aforementioned areas (maximum amount of 100%) can be deducted annually from income, and in parallel, 25% of the investments made in research, technological development, or innovation for specific projects may be deducted annually from income tax.

Our tax regulations also provide for a VAT exemption on the Export of Services, eligible for a bi-monthly refund, for services provided from Colombia and used or consumed exclusively abroad by companies or individuals that do not do business or carry out activities in the country. This exemption is also applicable to services related to the production of copyrighted films, television, audiovisual content, and software development.

In this way, Colombian companies such as Fluid Attacks, Sigma Studios, Ubidots, and Yuxi Global are now exporting their services successfully to discerning markets like the U.S.A. and Canada.

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