Crypto startups to enjoy lower rent taxes in Colombia

Crypto startups to enjoy lower rent taxes in Colombia

The recent trend of events seem to suggest a general acceptance for cryptocurrency in many countries. Colombia has also joined in the quest to make the environment favourable for cryptocurrency and blockchain industry by cutting down rent taxes for crypto companies in the country.
Colombia’s president Ivan Duque mentioned this in his opening speech at an annual international congress to discuss Information and Communication Technology in the country.
According to El Tiempo, the president stated his commitment to cut rent taxes of all business involved with cryptocurrency for up to five years, adding that his action is to encourage creation of jobs in the cryptocurrency sector for the citizens of the country.
He further stated his commitment to explore the use of blockchain technology to improve key sectors of the economy such as security, health and to curb corruption by tracking the use of public funds to reduce embezzlement of funds. He said:

If we want to overcome corruption, technology can be instrumental. The Government must start by setting an example. We take it seriously, we want a modern Colombia”

Speaking on what he called “Digital Justice”, the president says the use of electronic files and online complaints will make resolution of issues much easier and will improve the functioning of the police and also the judiciary system in the country.
“The reform to justice, which we will present soon, will have a digital element to bring citizens closer to service and transform their relationship with the State,” said Duque.
He also made known his intention to improve network coverage and improve internet connectivity in the country, saying “Fifty percent of a country that feels very digital in the urban area has last mile problems in terms of connectivity,”
Being a technology enthusiast himself and a renowned financial expert in Colombia, the president made this commitment just few weeks after taking over the responsibilities of president from his predecessor whose government was not very crypto friendly.
However, he admitted that a public-private partnership is required to ensure the implementation of his goals for technology through deregulation of the ICT sector, saying

“We have to define what type of regulator we want and move towards a single, modern regulator that understands the need for transversal innovation”.

It is clear that the cryptocurrency sector will excel during Duque’s time in office because of his love for technology and the backing of the Colombian senate which has also indicated interest in supporting the use of blockchain technology by the government to improve the lives of citizens.