Sabana Consulting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHANGES IN TAX LAWS

 

Colombia offers a variety of incentives for investment in priority sectors (manufacturing, agro- industry, mining and petroleum and exports). Foreign investment is welcome in all economic sectors, (except in activities related to defense and national security)

Colombian gives preference to investments that generate significant employment, stimulate technological advances, and reduce general price levels.

Colombia has signed stability contracts for a term of three to 20 years; such agreements guaranteed the stability of certain taxes during the relevant period, provided the investor complied with specified requirements.

Such a perspective gives us an optimistic scenario to grow then this is a factor that we need to understand and profit out of its potential.

 

 

 

 

 

 

 

 

 

 

 

 

 

On 23 December 2014, Colombia’s president signed and published a new tax reform bill amending the Colombian Tax Statute. The bill proposes changes to the Tax Statute (Law 1607 of 2012) and creates new mechanisms to combat tax evasion. 

 

http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-colombiaguide-2014.pdf

http://www.ey.com/GL/en/Services/Tax/International-Tax/Alert--Colombia-enacts-tax-reform

 

 

SPECIAL TARIFFS

 

The low or high taxes, taken on import and export of good and services. Commonly used to restrict trade. This variable can affect Sabana consulting, in the way we develop the technologies in the company, because commonly technologies are exported by China and USA making them more expensive to consumers. 

 

 

POLITICAL ACTION COMMITEES

 

The political actions committees have a big influence in some problems of society. Regarding our company, Bogota Humana is working on the unemployment rate in Bogota and they are generating new jobs for people. This affects directly our company because we can see them as a competitor.

 

Reference: http://www.bogotahumana.gov.co/article/%E2%80%9Cbogot%C3%A1-humana-trabaja%E2%80%9D-abre-nueva-convocatoria-empleo

 

VOTER PARTICIPANT RATES

 

 

 

 

 

 

 

 

 

 

 

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Colombian politics plays a big role the area ok looking job, the proposals of candidates for mayor and current mayors are to give young people the opportunity to work. For example according to the law 789 in the articule 32 said:

‘’Empresas obligadas a la vinculación de aprendices. Las empresas privadas, desarrolladas por personas naturales o jurídicas, que realicen cualquier tipo de actividad económica diferente de la construcción, que ocupen un número de trabajadores no inferior a quince (15), se encuentran obligadas a vincular aprendices para los oficios u ocupaciones que requieran formación académica o profesional metódica y completa en la actividad económica que desempeñan.

Las empresas industriales y comerciales del Estado y las de Economía mixta del orden Nacional, departamental, distrital y municipal, estarán obligadas a la vinculación de aprendices en los términos de esta ley. Las demás entidades públicas no estarán sometidas a la cuota de aprendizaje, salvo en los casos que determine el Gobierno Nacional.

El empresario obligado a cumplir con la cuota de aprendizaje podrá tener practicantes universitarios bajo la modalidad de relación de aprendizaje, en el desarrollo de actividades propias de la empresa, siempre y cuando estos no superen el 25% del total de aprendices.’’

 

According to this law, Sabanas Consulting will provide the apprentices an opportunity to have their first’s experiences in big companies. That why Sabana consulting needs to be noticed how many young people support those candidates and mayors that support the studies in people with low resources.

 

http://www.gerencie.com/empresas-obligadas-a-contratar-aprendices.html

http://realpolitikmundial.com/2015/07/27/grafico-cultura-politica-en-colombia-3-disposicion-a-votar/

 

 

NUMBER, SEVERITY AND LOCATION OF GOVERNMENT PROTESTS

 

The protests in Colombia, affect in an indirect way Sabanas consulting business because It will slow down the process of graduation of students but at the same time those protests are because students are in conformed with how the government handles the studies in public universities.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

http://realpolitikmundial.com/2015/07/27/grafico-cultura-politica-en-colombia-3-disposicion-a-votar/

 

 

NUMBER OF PATENTS

 

A patent is a government license that gives the holder exclusive rights to a process, design or new invention for a designated period of time. In Colombia we count with 2158 patents presented to the state, this shows the development of the country taking into account the average of investigation realized but we can see that this aspect it's not an strength for Colombia compared with another countries as Argentina, Brasil and United States.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

http://www.sic.gov.co/drupal/recursos_user/estadisticas/presentadas%20concedidas/web/StatTrends_offline_IE_security_bypass.html

http://www.investopedia.com/terms/p/patent.asp

 

 

CHANGES IN PATENT LAWS

 

This law, was created in 2014, consists in the transparence in the right of accessibility to public national information. It provides security to the information of the organization and being recognized with original .information in Sabanas Consulting.

‘’Ley No. 1712 Por medio de la cual se crea la ley de Transparencia y del Derecho de Acceso a la Información Pública Nacional y se dictan otras Disposiciones.’’

 

 

http://www.wipo.int/wipolex/es/text.jsp?file_id=334095

http://www.sic.gov.co/drupal/normatividad

 

 

LEVEL OF DEFENSE EXPEDITURES

 

Military expenditure (% of GDP) data from SIPRI (Stockholm International Peace Research Institute),are derived from the NATO definition, which includes all current and capital expenditures on the armed forces.

 

 

 

 

Colombia has one of the highest indicators in the world nevertheless it is expected that once the government signs the Process Peace, the military budget might be dedicated to cover different areas of development, such as Education, Technology, Infrastructure and of course this will open new opportunities for a project like ours.

 

http://data.worldbank.org/indicator/MS.MIL.XPND.GD.ZS

 

 

LEGISLATION ON EQUALL EMPLOYMENT

 

Article 13 of our Colombian Political Constitution

Article 10 of the Colombian Labor Code

 

In Colombia, legal regulation states the prohibition of all forms of discrimination based on gender, gender identity and sexual orientation.

According to the above mentions Articles, it is understood that “each individual is born free and equal before the law, and guarantees the same protection and treatment from particulars and authorities as well”.

Every individual is covered with the same rights, freedoms and opportunities with no discrimination on grounds of gender, race, nationality or religion, among others. On the other hand,  our Labor Code, states that all employees are equal.

We may conclude that Colombian legislation proscribes any kind of unequal or discriminatory practices.

This way, we as employ promoters should have in mind these articles when implementing and promoting, recruitment, employment and human resources policies.

 

http://www.agediscrimination.info/international/Pages/Colombia.aspx

 

 

LEVEL OF GOVERNMENT SUBSIDIES

 

Colombia has adopted a government-subsidized strategies aimed at protecting and promoting certain productive segments such as health insurance scheme, fuels, Cashdesks of Family Compensation, housing subsidies, agricultural products (coffee, rice) and the Unemployment Subsidy Program among others. When assessing the effects of this subsidies.

We interpret that the effect of these government strategies would benefit us, as they could be intended to promote employment and industry development.

 

http://www.banrep.org/en/borrador-750

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ANTITRUST LEGISLATION

 

Colombia’s competition law is one of the oldest in Latin America . The Superintendencia de Industria y Comercio has administrative autonomy of the Antitrust Legislation. Competition law in Colombia is continuously evolving due to integration treaties in Latin America.

In 2005, Congress issued Law 962, which orders the application of civil procedure to unfair trade cases.

Law 1340, Issued July 24, 2009 :The principal feature of the new law is the appointment of SIC as the National Competition Authority. The merger control legislation in Colombia is also set forth in this law.

We must be committed with our responsibility for overseeing the adequate competences to ensure compliance with the law and any corporate policy, procedures, and guidelines.

 

http://www.lawschool.cornell.edu/research/ilj/upload/londono.pdf

 

 

CHINA-COLOMBIA RELATIONSHIP

 

This relationship between China and Colombia is very beneficial to Colombia because of the economic position that China is having right now, but the two governments are still negotiating the possibility of a free trade agreement. Although this is a very positive relationship, Colombia has a deficit on the BOP because they are importing 942 tariff headings and exporting only 46. China has been taking advantage of the market by investing a lot of money in Colombia, while Colombia hasn’t been able to exploit completely. This is a big opportunity to produce better products and services and start competing in the global market to balance our BOP with China.

 

Reference: http://www.usergioarboleda.edu.co/altus/economia_colombia_china.htm

 

EU-COLOMBIA RELATIONSHIP

 

The European Union and Colombia are having a better and better relationship each time. In August of 2013 the commercial agreement was celebrated, and now is just a matter of a couple of months before the EU allow Colombian people to their territory without a Visa. The 17% of Colombia’s foreign direct investment goes directly to the EU, and the trade volume between them is of €11.884 billion, making Colombia the fourth most important economic partner of EU in the region. Although these factors are really good, Colombia is just starting to take advantage of the commercial agreement and there are still many markets to be explored.

 

Reference: http://eeas.europa.eu/colombia/index_en.htm

http://eeas.europa.eu/delegations/colombia/eu_colombia/political_relations/index_es.htm

 

RUSSIA-COLOMBIA RELATIONSHIP

 

The balance of trade for Colombia and Russia is only of 50 million dollars a year, this number worries a lot of people because these two countries have a lot of potential to take huge advantage of the commercial relationship. Russia is the biggest country in the world and their economy is very complementary with the Colombian economy. Russians have a high purchasing power and they require services and first need products. Portafolio magazine talked with the chief of the international program with Latin America in Moscow and he is very worried because he says that Colombia is not taking advantage of the opportunities that Russia is giving them. He expect that in a couple of years the evolution of the balance trade between both countries grow to 2.000 million dollars a year.

 

Reference: http://es.rbth.com/internacional/2014/06/17/las_perspectivas_de_las_relaciones_entre_colombia_y_rusia_40979.html

http://www.portafolio.co/economia/rusia-y-colombia-grandes-socios-comerciales

 

AFRICAN-COLOMBIA RELATIONSHIP

 

The balance of trade between Africa and Colombia is positive in 18 million of dollars. South Africa and Ivory Coast are the principal clients of Colombia importing products such as sugar and honey, and South Africa and Morocco are the principal selling countries to Colombia with products such as manure. Besides these factors Colombia has not a very good economic relationship with Africa because they haven’t explored the markets. African economies have the biggest growing rates in the last years, with a 4.2% for 2015, it creates a big opportunity for Colombia to take advantage and start negotiating free trade agreements.

 

Reference: http://www.africainfomarket.org/estadisticas/item/16925-relaciones-comerciales-colombia-africa-16925

http://www.portafolio.co/opinion/crecimiento-economico-africa-2015

 

 

IMPORT- EXPORT REGULATIONS

 

This topic consist in all the import- exports regulations that are stablished in order to do this activities by the Ministry of Commerce, Industry and Tourism, which is the responsable to control the international trade and the free trade agreement (FTA) of all the goods and services movements that are getting in and outside the country.   For the protection of the domestic business there are special tariffs or taxes that have to be paid to make a balance in the national economy when new products or services are exported to the country, and all the regulations depends if it's an good or is a service. 

 

http://www.mincit.gov.co/publicaciones.php?id=16267

 

 

GOVERNMENT FISCAL AND MONETARY POLICY CHANGES

 

Fiscal and monetary policies are controls executed, by government to regulate inflation or deflation in a country to equilibrate a economy, through spending, taxes and debt, Controlling level of GP, inflation, level of productivity and others. Fiscal and monetary policies influence Sabana Consulting, by laws and regulations, providing determine prices for purchases, and taxes that our company has to pay to government.

 

POLITICAL CONDITIONS IN FOREIGN COUNTRIES

 

There are many economies that affect Colombia and also special laws that contribute to the economy in our country, Potential countries like United State, has always a big influence in the all world, also Venezuela who is not a potential is our nearest country, and crisis affect us.

 

SPECIAL, LOCAL AND FEDERAL LAWS

The state laws in Colombia are defined and aproved by El Congreso de la Repúbica regulated by "La constitución nacional de 1991". The control of the laws is very important because this is how a society can act, in other words are rules that tell us what is allowed and prohibited.

 

http://www.senado.gov.co/legales/item/11164-que-es-una-ley