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Colombia has exempted IT companies from paying sales tax on software development and export, as the South American country attempts to generate more jobs in the technology sector, reports nearshoreamericas.com. This has been a long-standing demand from companies within the IT sector, stated the national ICT ministry (MINTIC).
Diego Molano Vega, Minister of ICT, said in a press release: “This measure motivates entrepreneurs to set up software firms and expand overseas. All this we do to give a boost to the IT industry, which translates into more jobs and less poverty.”
The tax exemption comes in the wake of government’s plans to launch six software development centres across the country, each dedicated to developing software for specific areas of the economy.
Colombia appears to have ambitious plans to boost its technology sector. It is currently gearing up to make a new spectrum available to help telecom carriers expand coverage in rural and remote areas of the country.
Outsourcing accounts for around 40% of Colombia’s IT services sector, according to tourism, foreign investment, and exports promotion company Proexport Colombia.
The Inter-American Development Bank (IDB), which recently loaned Colombia USD 12 million to help promote the it’s outsourcing services industry, says the South American country has immense potential to grow as a global outsourcing destination.