OECD Tax Policy Reviews: Colombia 2022

Annex D. List of Personal Income Tax Expenditures

This Annex includes the complete list of Personal Income Tax Expenditures that were identified in Colombia as part of the project.

Table A D.1. Identified Personal Income Tax Expenditures (natural persons)

ID	Type	Tax Expenditure	Legal Reference (Law/Article)		Revenue forgone estimate available
E1	Exempt income	Benefits from Retirement and Disability Pension Fund. The benefits received by a taxpayer from a Retirement and Disability Pension Fund, due to a pension plan and due to old age, disability, widowhood, or orphan hood, are assimilated to retirement pensions for the purposes of the provisions of the numeral 5 of article 206.	Legislative Decree 2512 of 1987	4
E2	Exempt income	Betting prizes and equestrian or canine contests and prizes to owners of horses or racing dogs (up to 410 UVT). Prizes for equestrian or canine bets and competitions, obtained from horse or dog races, in legally established racetracks or dog tracks, whose value does not exceed 410 UVT (approximately USD$ 4 100), are not subject to capital gains tax or tax withholding.	Law 6 of 1992	8
E3	Exempt income	Capitalized income in cinematographic industry (50%). The income that the cinematographic industrialists (producers, distributors and exhibitors) obtain, and that is capitalized or reserved to develop new productions or investments in the cinematographic sector, will be exempt up to fifty percent (50%) of the value of income tax.	Law 397 of 1997	46
E4	Exempt income	Difference between market value and historical cost in property sales. The value of transferred property is based upon the historical cost and not the current market value of the property.	Legislative Decree 2053 of 1974 Law 1111 of 2006	26 116 20
E5	Exempt income	Dividends (up to 300 UVT). Dividends paid to an individual shareholder that do not exceed 300 UVT (about US 2 900) are not taxed under the 10% dividend withholding tax.	Law 1819 of 2016 Law 2010 of 2019	6 35	X
E6	Exempt income	Donations to those affected by the volcanic activity of the Nevado del Ruiz. Donations in favor of people affected by the volcanic activity of the Nevado del Ruiz made by the Reconstruction Fund, "RESURGIR", or the entities that work in the rehabilitation of the areas affected by it, are exempt from capital gains tax.	Law 44 of 1987	4
E7	Exempt income	Income received by authors, translators and copyright holders of certain books. The income that authors and translators, both Colombian and foreign resident in Colombia, receive from authors and translators, for books of a scientific or cultural nature edited and printed in Colombia, for each title and for each year.	Law 1819 of 2016 Law 2010 of 2019	99 91
E8	Exempt income	Inheritance (20% of assets up to 2 290 UVT). 20 percent of the value of the assets and rights received by individuals other than the heirs and / or the surviving spouse for inheritances and bequests, and 20% of the assets and rights received for donations and other acts, limited to 2 290 UVT (USD 22 000)	Law 75 of 1986. Law 1607 of 2012.	72 104.
E9	Exempt income	Inheritance (heirs’ and spouse’s inheritance allowance up to 3 490 UVT). The equivalent of the first 3 490 UVT (USD 34 000) of the value of the allowances that each of the heirs and the surviving spouse received.	Law 75 of 1986. Law 1607 of 2012.	72 104.
E10	Exempt income	Inheritance (up to 7 700 UVT). The equivalent of the first 7 700 UVT (USD 74 000) of a rural property and the equivalent of the first 7 700 UVT in the inheritance are exempt from taxation.	Law 75 of 1986. Law 1607 of 2012.	72 104.
E11	Exempt income	Investment in sawmills and related investment in the lumber industry. Exempt income for investment in new sawmills, processing plants and plantations of timber trees and trees in fruit production.	Law 1819 of 2016 Law 2010 of 2019	99 91
E12	Exempt income	Labor income deduction. 25% of labor income is deductible; this deduction cannot be higher than 2 880 UVT per year.	Law 223 of 1995. Law 1607 of 2012	96 6	X
E13	Exempt income	Life insurance compensation (up to 12 500 UVT). Life insurance compensations are exempt up to 12 500 UVT (about USD 120 000). Compensations in excess of this amount are treated as occasional income.	Law 2010 of 2019	36
E14	Exempt income	Maternity leave payments.	Law 75 of 1986.	35
E15	Exempt income	Other exempt income recognized in international agreements ratified by Colombia.	CAN Decision 578 of 2004 Law 2061 of 2020 Law 1939 of 2018 Law 1690 of 2013 Law 1667 of 2013 Law 1668 of 2013 Law 1568 of 2012 Law 1459 of 2011 Law 1344 of 2009 Law 1082 of 2006 Law 2004 of 2019 Law 1692 of 2013 Law 1261 of 2008.
E16	Exempt income	Pensions (up to 12 000 UVT). Pension income below 1 000 UVT per month or 12 000 UVT per year (about USD 116 000 per year) is tax exempt (i.e. there is a tax allowance of 12 000 UVT per year). The tax expenditure is equal to the difference between the 1 000 UVT zero-rate bracket and the standard zero-rate bracket under the PIT.	Law 75 of 198 Law 223 of 1995.	35 96	X
E17	Exempt income	Private use of a company car. Transport reimbursements are exempt from individual income tax provided that the employee provides the employer with invoices to support the reimbursement. This includes the private use of a company car made available by the employer, tickets for fuel costs and maintenance, and the payment of the insurance premium in respect of a vehicle used by the employee for work purposes.	Decree 2663 of 1950 Law 50 of 1990	129 15
E18	Exempt income	Real estate capital gains (up to 7 500 UVT). Realized capital gains from the sale of homes up to 7 500 UVT (about USD 72 000).	Law 1607 of 2012	105
E19	Exempt income	Return from contributions to voluntary pension schemes. The return from contributions to voluntary pension schemes.	Law 49 of 1990 Law 1819 of 2016	9 15
E20	Exempt income	Salaries and emoluments paid by the Development Bank of Latin America. The salaries and emoluments paid by the Development Bank of Latin America to the Directors, their alternates and the officials and employees thereof, who are not citizens or nationals of the country where the Bank has its headquarters or offices, are exempt from taxes.	Law 103 of 1968	52
E21	Exempt income	Salaries and emoluments paid by the International Bank for Reconstruction and Development. Salaries and emoluments paid by the International Bank for Reconstruction and Development to the Executive Directors, alternates, officers or employees of the Bank itself who are not citizens, subjects or other nationals of the respective country are not taxed, nor is any tax established in relation to such salaries and emoluments.	Law 76 of 1946	7
E22	Exempt income	Salaries and emoluments paid by the United Nations Organization. Are exempt from taxes on salaries and emoluments paid by the United Nations Organization to its officials. This is not subject to the limit of 40% or 5040 UVT.	Law 62 of 1973	5
E23	Exempt income	Salaries by the Council of the Organization of American States. The Representatives of the Governments in the Council of the Organization of American States, the Representatives in the organs of the Council, the personnel that make up the Representations, as well as the Secretary General and the Assistant Secretary General of the Organization, shall enjoy the privileges and immunities necessary to carry out their functions independently. This Includes the labor income receive by the officials of OEA.	Law 1 of 1951	104
E24	Exempt income	Salary of headmasters and professors at public universities (50%). In the case of headmasters and professors at public universities, a percentage equivalent to 50% of their salary will be considered exempt representation expenses (not subject to 40% ceiling).	Law 2010 of 2019	32
E25	Exempt income	Salary of judges, prosecutors and judicial attorneys (50%). In the case of judges of the High Courts, their prosecutors and judicial attorneys, a percentage equivalent to 50% of their salary will be considered exempt representation expenses (not subject to 40% ceiling).	Law 2010 of 2019	32
E26	Exempt income	Salary of officials in other international organizations. The exemption of the remuneration of officials in international organizations. Residual classification of the exempt income that applies to officials of international organizations not included in other rows.
E27	Exempt income	Salary received above basic salary in the military. Excess of basic salary received by officers, non-commissioned officers, and professional soldiers of the Military (not subject to 40% ceiling).	Law 75 of 1986 Law 2010 of 2019	35 32
E28	Exempt income	Salary received above basic salary in the national police. Excess of basic salary received by officers, non-commissioned officers, executive level personnel, patrolmen and agents of the national police (not subject to 40% ceiling).	Law 75 of 1986. Law 2010 of 2019.	35 32
E29	Exempt income	Sale of property for public interest projects. The profit in the sale of properties destined to the development of social interest housing projects and / or priority interest housing; it is exempt income.	Law 1819 of 2016 Law 2010 of 2019	99 91
E30	Exempt income	Sale of property for urban renewal projects. The profit in the sale of properties for the development of urban renewal projects is exempt income.	Law 1819 of 2016 Law 2010 of 2019	99 91
E31	Exempt income	Sale of shares in CHC (excluding profits from activity in Colombia). The income derived from the sale of shares or participations owned in a Colombian Holding Company are exempt income, except for the value corresponding to the profits obtained from the profits obtained in Colombia.	Law 2010 of 2019	77
E32	Exempt income	Services rendered in new hotels. Exempt income for services rendered in new hotels.	Law 788 of 2002	18
E33	Exempt income	Services rendered in remodeled and / or expanded hotels. Exempt income for services rendered in remodeled and / or expanded hotels. It corresponds to the proportion that represents the value of the remodeling and / or expansion in the fiscal cost of the property.	Law 788 of 2002	18
E34	Exempt income	Severance payments and interest earned on severance payments. Severance payments and interest earned on severance payments provided they are received by employees whose average monthly salary in the previous 6 months does not exceed 350 UVT.	Law 75 of 1986.	35
E35	Exempt income	Social benefits received by the members of the Military or the national Police. Social benefits received by the members of the military or the national police while being in active duty or retirement (not subject to 40% ceiling).	Law 75 of 1986 Law 2010 of 2019.	35 32
E36	Exempt income	Top government officials. Exemptions on certain income from top government positions.	Law 1607 of 2012. Law 2010 of 2019.	7 33
E37	Exempt income	Urban dwelling owned by the deceased (up to 7 700 UVT). 7 700 UVTs of the value of the deceased’s urban dwelling is not taxed under the capital gains tax.	Law 75 of 1986. Law 1607 of 2012	72 104.
E38	Exempt income	Use of new forest plantations. The use of new forest plantations, including guadua, rubber and cashew, is a exempt income, according to the qualification issued by the regional autonomous corporation or the competent entity.	Law 1819 of 2016 Law 2010 of 2019	99 91
E39	Exempt income	Voluntary contributions to private pension funds and AFC housing savings. Voluntary contributions to private pension funds made by the employee and contributions to housing savings (AFC accounts) are considered exempt income. The deductions are subject to permanence requirements and cannot exceed 30% of general gross income and cannot exceed 3 800 UVT (approximately USD 37 000).	Law 49 of 1990 and Law 488 of 1998 Law 1819 of 2016	9 and 23 15 and16	X
E40	Exempt income	Waterway transport services. The income from the provision of the river transport service with boats and slabs of low draft is exempt income, for a term of fifteen (15) years as of 2019.	Law 1819 of 2016 Law 2010 of 2019	99 91
NT1	Non-taxable income	Capitalization processes. The income that is distributed through shares will not be taxed with income tax to the employer, up to the equivalent of 10% of the profit generated. The profits derived from these actions will not be subject to tax within the 5 years in which they are transferred to the worker and he retains his ownership, nor will they be part of the base to settle any other tax.	Law 789 of 2002	44
NT2	Non-taxable income	Compensation for working with intelligence services. Compensation for supply of data to the intelligence sections of the State / Government bodies.	Law 223 of 1995	252
NT3	Non-taxable income	Derivatives with CSE-listed companies as underlying. The income that comes from the negotiation of derivatives that are securities and whose underlying is represented exclusively in shares listed in a Colombian stock exchange, indices or participations in funds or collective portfolios that reflect the behavior of said shares, are not taxable income.	Law 1430 of 2010	37
NT5	Non-taxable income	Dividends derived from mega-Investments. Dividends from mega-investments are not taxed under the dividend withholding tax (i.e. the 7.5% when dividends are distributed to another corporation or 10% when distributed to an individual shareholder).	Law 2010 of 2019	75
NT6	Non-taxable income	Dividends distributed by a CHC to a non-resident. The premium of the placement of shares or dividends distributed by a Colombian Holding Company to a non-resident individual are foreign source income, which is not taxed in Colombia.	Law 2010 of 2019	77
NT7	Non-taxable income	Donations to political parties. Donations for Political Parties, Movements and Campaigns. The sums that individuals receive from third parties, exclusively destined to finance the operation of parties, political movements and social groups that nominate candidates and those that the candidates receive for the same purpose for the financing of political campaigns for the planned popular elections. In the National Constitution, this is non-taxable income for the beneficiary if it is shown that it has been used for these activities.	Law 223 of 1995	248
NT8	Non-taxable income	Donations to projects approved by the Multilateral Fund of the Montreal Protocol. Donations in cash received by individuals or entities that participate in the execution and development of projects approved by the Multilateral Fund of the Montreal Protocol (protecting the ozone layer), through any executing agency, bilateral or multilateral, are non-taxable income.	Law 488 of 1998	32
NT9	Non-taxable income	Forest Incentive Certificates. As it constitutes an acknowledgment by the state of the environmental benefits originated by reforestation, the income from Forest Incentive Certificates are not taxable income.	Law 139 of 1994	8 Literal C
NT10	Non-taxable income	Inflation on capitalized income and interest. Inflationary component if capitalized and on interests paid by financial entities and investment funds.	Law 75 of 1986 Decree 2512 of 1987	27 6	X
NT11	Non-taxable income	Payments by employer for food. Payments made by the employer to employees or their families for food up to a monthly amount of 41 UVTs are exempt income of the employee. This tax treatment only applies to employees with employment income below 310 UVTs per month.	Law 488 of 1998 Law 788 of 2002	6 84	X
NT12	Non-taxable income	Property sales (1978-1986). Income obtained from the sale of immovable property acquired since 1978 to 1986, where the percentage of non-taxable income decreases from 1978 (100% non-taxable) to 1986 (10% non-taxable).	Law 75 of 1986	64, Paragraph 2
NT13	Non-taxable income	Raffle of capitalization titles in closed groups. In raffles for closed groups of capitalization titles and in any other raffle in which there is total certainty of being favored, what is received by way of raffle is non-taxable income.	Decree 187 of 1975 Decree 400 of 1975	113 11
NT14	Non-taxable income	Raffle of capitalization titles. For taxpayers who are favored in a raffle of capitalization titles, only the difference between the prize received and what is paid in installments corresponding to the favored title is an occasional gain.	Legislative Decree 2348 of 1974	1
NT15	Non-taxable income	Raffles or contests carried out by the Tax Administration. The Tax Administration may carry out raffles or contests; the income from prizes obtained in the raffles, sweepstakes or contests carried out under the Fiscal Prize, are not taxable income.	Law 49 of 1990	36
NT16	Non-taxable income	Rural Capitalization Incentive. The Rural Capitalization Incentive (ICR), provided for in Law 101 of 1993, is non-taxable income.	Law 788 of 2002	20
NT17	Non-taxable income	Sale of CSE-listed company shares. Income provided from the sale of shares of a company listed in the Colombian Stock Exchange (CSE) when such sale does not represent more than 10% of the total number of shares of the listed company.	Law 633 of 2000.	9
NT18	Non-taxable income	Sale of expropriated real estate. The income obtained in the voluntary sale of real estate expropriated is a non-taxable income.	Law 388 of 1997	67, Paragraph 2.
NT19	Non-taxable income	Sale of properties in Nevado del Ruiz area. The income obtained from the sale of properties located in the areas affected by the Nevado del Ruiz volcanic activity is non-taxable income.	Extraordinary Decree of 1987	5
NT20	Non-taxable income	Sale of real estate destined for public interest. The income from the sale of real estate destined for public utility or social interest purposes is non-taxable income, if the negotiation occurs through voluntary sale.	Law 9 of 1989 Law 3 of 1991	15 35
NT21	Non-taxable income	Sale of shares in CFC. Income from the sale of shares or participations in the CFC is non-taxable income.	Law 1819 of 2016	139
NT22	Non-taxable income	Sale of shares in CHC by non-residents. For non-resident partners or shareholders, income derived from the sale of shares or participations owned in a Colombian Holding Company is foreign source income, which is not taxed in Colombia.	Law 2010 of 2019	77
NT23	Non-taxable income	Voluntary contributions to the mandatory individual savings scheme. Voluntary contributions to the mandatory individual savings scheme are non-taxable income (so they are not limited to the 40% overall deduction ceiling), but the deduction itself cannot exceed 25% of general gross income, nor 2 500 UVT.	Law 1819 of 2016	13	X
NT24	Non-taxable income	Scientific, technological or innovation work. Non-taxable income is remuneration of the individuals for work of a scientific, technological or innovation.	Law 1450 of 2011	37
NT25	Non-taxable income	Seed capital provided by the state. Non-taxable income is the non-reimbursable economic support provided by the State, as seed capital for the venture and as capital for the strengthening of the company.	Law 1429 of 2010	16
NT26	Non-taxable income	Student support. Economic support for students provided by the state.	Law 1819 of 2016.	11
NT27	Non-taxable income	Subsidies from Agro Ingreso Seguro program. The subsidies and aid granted by the government in the program Agro Ingreso Seguro, AIS, and those from the incentive to storage and the incentive to rural capitalization provided for in Law 101 of 1993 are non-taxable income.	Law 1111 of 2006	58
NT28	Non-taxable income	Support for scientific, technological or innovative projects. The resources that the taxpayer receives to be used for the development of projects classified as scientific, technological or innovative, according to the conditions defined by the National Council of Tax Benefits in Science, Technology and Innovation, are non-taxable income.	Law 1450 of 2011	37
DD1	Deduction / Non-standard deduction	Adjustment of real estate, shares and contributions that are fixed assets of individuals. For purposes of determining the income or capital gain, as the case may be, from the sale of real estate and shares or contributions, which have the character of fixed assets, taxpayers who are individuals may adjust the acquisition cost of such assets, in the percentage increase in the value of the real estate, or in the percentage increase in the consumer price index for employees, respectively, that has been registered in the period between January 1 of the year in which the property was acquired good and January 1 of the year in which it is sold. The cost thus adjusted, may be increased with the value of the improvements and valuation contributions that have been paid, in the case of real estate. When the taxpayer chooses to determine the fiscal cost of real estate, contributions or shares in companies, based on the provisions of this article, the sum thus determined must appear as equity value in their income statements, notwithstanding that in years may make use of the alternative provided for in article 72 of this Statute, fulfilling the requirements demanded therein. The percentage increases applicable to the cost of acquisition of real estate, shares or contributions, provided for in this article, will be published by the government based on the certification issued in this regard, the Agustín Codazzi Geographical Institute and the Department National Statistics Administration DANE, respectively. The adjustments made in accordance with the first paragraph of article 70, will not be applicable to determine the income or occasional profit provided for in this article. At the time of the sale of the property, the depreciation that has been deducted for tax purposes will be subtracted from the fiscal cost determined in accordance with this article.	Law 75 of 1986 Legislative Decree 2687 of 1988	64 65
DD2	Deduction / Non-standard deduction	Agricultural parafiscal contributions to stabilization funds. Deduction for agricultural parafiscal contributions made by producers to stabilization funds.	Law 101 of 1993	29
DD3	Deduction / Non-standard deduction	Amortization in abandoned or withdrawn natural resource projects. When such explorations are abandoned or withdrawn, the unamortized balance of the investments made in exploration will continue to be amortized at the annual rate of ten percent (10%).	Legislative Decree 2310 of 1974	10
DD4	Deduction / Non-standard deduction	Assessment as fiscal cost. The assessment declared for purposes of the Unified Predial Tax, and the values formed or updated by the cadastral authorities, may be taken as fiscal cost for the determination of the income or capital gain that occurs in the alienation of properties that constitute real estate assets for the taxpayer. For these purposes, the self-assessment or assessment acceptable as a tax expense will be the one that appears in the declaration of the Unified Tax on Real Estate and/or income declaration, as the case may be, corresponding to the year prior to the alienation. For these purposes, corrections or additions to the affidavits or unformed assessment will not be taken into account. If the assessment or self-assessment is taken as the fiscal cost, at the time of the sale of the property, the depreciation that has been deducted for fiscal purposes will be subtracted from the fiscal cost.	Law 14 of 1983	13, 14, and 23
DD5	Deduction / Non-standard deduction	Attentions to customers, suppliers and employees. Attentions to customers, suppliers and employees, such as gifts, courtesies, parties, meetings and celebrations. The maximum amount to be deducted for all of these concepts is 1% of net and effectively realized tax income.	Law 1819 of 2016	63
DD6	Deduction / Non-standard deduction	Average cost of shares. When the taxpayer has within his equity shares of the same company whose costs are different, he must take the average of such costs as the cost of disposal.	Legislative Decree 2247 of 1974	55
DD7	Deduction / Non-standard deduction	Carbon tax. For the taxpayer, the carbon tax is deductible from the income tax as the greater value of the cost of the good.	Law 1819 of 2016	Paragraph 2, 222
DD8	Deduction / Non-standard deduction	Cost of labor in coffee growing sector. For the determination of the cost in coffee plantations, it is presumed by law that forty percent (40%) of the value of the income taxed by the producer, in each taxable year, corresponds to the costs and deductions inherent to the workforce.	Law 1819 of 2016	46
DD9	Deduction / Non-standard deduction	Depletion in mining, gases other than hydrocarbons and natural deposits. Deduction for depletion in mining, gases other than hydrocarbons and natural deposits.	Legislative Decree 2310 of 1974	11
DD10	Deduction / Non-standard deduction	Determination of the fiscal cost of the elements of property, plant and equipment and investment properties. The tax cost of items of property, plant and equipment, and investment property, for taxpayers who are required to keep accounts, is the acquisition price plus directly attributable costs until the asset is available for use, except for the initial estimate of the costs of dismantling and removal of the element, as well as the rehabilitation of the place on which it sits, if applicable. Additionally, improvements, major repairs and inspections, which must be capitalized in accordance with the accounting technique and that comply with the provisions of the tax code, will be part of the cost of the asset. In subsequent measurements of these assets, the cost thus determined will be maintained. When these assets are sold, the value of the adjustments related to the UVT, which is dealt with in article 70 of the tax code, is added to the previous result; and, when applicable, depreciation or amortization is subtracted, as long as it has been deducted for tax purposes. Investment properties that are measured for accounting purposes under the fair value model, for tax purposes will be measured at cost. For taxpayers not required to keep accounts, the cost of the goods disposed of fixed or immobilized assets, is constituted by the acquisition price or the cost declared in the immediately previous year, as the case may be, plus the following values: a) The cost of additions and improvements, in the case of personal property; b) The cost of construction, improvements, non-deducted locative repairs and that of contributions for valuation, in the case of real estate.	Law 1819 of 2016	48
DD11	Deduction / Non-standard deduction	Donations directed to scholarship programs. Deduction for donations directed to scholarship programs or condonable educational loans.	Law 6 of 1992	4
DD12	Deduction / Non-standard deduction	Donations made for the sponsorship of Natural Parks and Conservation of Natural Forests. Taxpayers who make donations to the Special Administrative Unit of the System of National Natural Parks, in order to finance Colombia's natural parks and conserve natural forests, can deduct 30% from the income tax of the value of the donations made during the taxable period.	Law 1536 of 2012	6
DD13	Deduction / Non-standard deduction	Donations made to the entrepreneurship and innovation agency of the government. Taxpayers can deduct the value of donations made to the entrepreneurship and innovation agency of the government iNNpulsa, after verification and approval by the Ministry of Commerce, Industry and Tourism.	Law 2069 of 2020	40
DD14	Deduction / Non-standard deduction	Donations received through Icetex. Taxpayers can deduct the value of donations received through Icetex, directed to programs of scholarships that finance the training and education of those who enter the Public Force.	Law 2130 of 2021	2
DD15	Deduction / Enhanced deduction	Donations to organizations dedicated to the defense, protection and promotion of human rights and access to justice, amateur sports organizations, sports clubs, sports federations or associations (125%). Donations to the General Gustavo Matamoros D'Costa Corporation and to foundations and organizations dedicated to the defense, protection and promotion of human rights and access to justice, amateur sports organizations, sports clubs, sports federations or associations, and the Colombian Olympic Committee, and the recreational or cultural organizations can deduct 125% of the value of the donation.	Law 6 of 1992 Law 488 of 1998 Law 223 of 1995 Law 181 of 1995	137 37 278 76
DD16	Deduction / Non-standard deduction	Donations to support science, technology and innovation. Taxpayers can deduct the donations received by the National Financing Fund for the Science, Technology and Innovation, Francisco José de Caldas Fund, aimed at financing of Science, Technology and Innovation Programs and / or Projects, according to the conditions of the National Council of Tax Benefits in Science, Technology and Innovation (CNBT). This is deductible in the taxable period in which it is carried out.	Law 6 of 1992 Law 1955 of 2019	4 170
DD17	Deduction / Non-standard deduction	Financial transaction tax (50%). 50% of the financial transaction tax (GMF).	Decree 2053 of 1974 Decree 2348 of 1974 Law 75 of 1986 Law 2010 of 2019	48 56 5 39 86
DD18	Deduction / Non-standard deduction	Fiscal cost of formed intangible assets. The fiscal cost of intangible assets formed by taxpayers not required to keep accounts, concerning industrial, literary, artistic and scientific property, such as invention patents, trademarks, copyrights and other intangibles, is presumed to be constituted by thirty percent (30%) of the sale value.	Legislative Decree 2053 of 1974 Law 1819 of 2016	25 55
DD19	Deduction / Non-standard deduction	Interest paid on educational loans. Interest paid on educational loans from the Colombian institute for educational credit and technical studies abroad, aimed at the taxpayer's higher education. The deduction cannot exceed 100 UVT per year.	Legislative Decree 2053 of 1974 Law 2010 of 2019	47 89
DD20	Deduction / Non-standard deduction	Investments in detention centers. Companies or individuals can deduct from their gross income the value of the new investments made in the year, in detention centers, as long as they are effectively used for work and education programs for inmates, and individuals are linked to the company. The deduction may not exceed (15%) per year of the net income.	Law 633 of 2000	98
DD21	Deduction / Enhanced deduction	Investments or donations in creative economy projects (165%). Deduction equivalent to 165% for investments or donations in creative economy projects as defined by the Ministry of Culture.	Law 1955 of 2019	180
DD22	Deduction / Enhanced deduction	Investments or donations to Colombian film projects (165%). Taxpayers who make investments or donations to Colombian production or co-production film projects approved by the Ministry of Culture can deduct from their tax (165%) of the real value invested or donated.	Law 814 of 1993 Law 1607 of 2012	16 195
DD23	Deduction / Non-standard deduction	Maintenance and conservation of assets declared as in cultural interest. The owners of movable and immovable property declared as of cultural interest, can deduct the totality of the expenses for the elaboration of the Special Protection Plans and for the maintenance and conservation of these assets, even if this is not causally related to the activity that produces the income.	Law 1185 of 2008	14
DD24	Deduction / Non-standard deduction	Mortgage interest relief (up to 1 200 UVT). Mortgage interest relief, the deduction is limited to 1 200 UVT per year.	Decree 2053 of 1974 Law 75 of 1986 Law 2010 of 2019	47 40 89	X
DD25	Deduction / Non-standard deduction	Natural resource exhaustion in contracts in force as of October 28, 1974. Normal deductions for exhaustion in contracts in force as of October 28, 1974. The taxpayer can deduct a fixed percentage of 10% of the natural product extracted from the oil field or another deduction rate based on a technical estimate of the cost of operating units. This cannot exceed 35% of net income.	Legislative Decree 2310 of 1974	6
DD26	Deduction / Non-standard deduction	Private health insurance contribution (up to 192 UVT). Voluntary payments for additional health insurance paid to private health insurers that provide supplementary services to mandatory health insurance, to protect the worker, his partner, his children and dependents. The tax deduction cannot exceed 192 UVT per year.	Law 6 of 1992 Law 1607 of 2012	120 15
DD27	Deduction / Enhanced deduction	Salaries paid to first-job employees who are under twenty-eight years of age (120%). Deduction of 120% of the payments that the employer makes for salary, in relationship with employees who are under twenty-eight (28) years of age, as long as in the case of the person's first job.	Law 2010 of 2019	88
DD28	Deduction / Enhanced deduction	Salaries, social benefits and other labor payments, paid to female workers who are victims of proven violence (200%). Employers who employ female workers who are victims of proven violence, can deduct from their income 200% of the value of wages and social benefits paid during the year, since the employment relationship exists, and up to a period of three years.	Law 1257 of 2008	23
DD29	Deduction / Enhanced deduction	Salaries, social benefits and other labor payments, paid to widows and orphans of members of the Armed Forces killed in combat, kidnapped or missing (200%). Deduction equivalent to 200% for salaries, social benefits and other labor payments, paid to widows and orphans of members of the Armed Forces killed in combat, kidnapped or missing.	Law 6 of 1992	127
DD30	Deduction / Enhanced deduction	Salaries, social benefits and other labor payments, paid to workers with a proven disability of no less than 25% (200%). Employers who employ workers with a proven disability of no less than 25% can deduct from their income 200% of the value of wages and social benefits paid during the year to workers with a disability, as long as it subsists.	Law 361 of 1997	31
DD31	Deduction / Non-standard deduction	Special depletion deductions. Once the exploitation period has started, this deduction will be suspended; but the unamortized balance of the corresponding investments will be taken as an integral cost of the amount of the taxpayer's investments, amortizable by the normal and special depletion deductions.	Legislative Decree 2310 of 1974	10
DD32	Deduction / Non-standard deduction	Special Exhaustion Factor in Hydrocarbon Exploitation. In addition to the annual deduction for normal depletion, the taxpayer can deduct a special depletion factor applicable year by year at a rate equivalent to 15% or 18% of the gross value of the natural product extracted; the normal deduction and the special deduction cannot exceed 50% of net income.	Law 75 of 1986	45
DD33	Deduction / Non-standard deduction	Studies of employees in Higher Education institutions. The individuals or companies that finance the studies of their employees in Higher Education institutions, for tax purposes, may deduct this amount from their operating costs.	Law 30 of 1992	124
DD34	Deduction / Non-standard deduction	Value of the income in kind: The value of payments or credits in kind that constitute income is determined by the commercial value of the species at the time of delivery. If species are given in payment of obligations agreed in money, their value is determined, unless proven otherwise, by the price set in the contract.	Legislative Decree 2053 of 1974	27
DF1	Deferrals	Accelerated depreciation of machinery, equipment and civil works of projects of unconventional energy sources. Deduction for accelerated depreciation of machinery, equipment and civil works of projects of unconventional energy sources. The annual depreciation rate will be no higher than (33.33%) as a global annual rate.	Law 1715 of 2014 Law 2099 of 2021	14 11
DF2	Deferrals	Depletion in exploitation of mines or gases other than hydrocarbons and natural deposits in contracts in force as of October 28, 1974. Deduction for Depletion in Exploitation of Mines or Gases other than hydrocarbons and natural deposits in contracts in force as of October 28, 1974. This deduction is equal to 10% of the total value of the year's production calculated at the mine head, less royalties or Leases paid, the deduction cannot exceed 35% of net income.	Legislative Decree 2310 of 1974	12
DF3	Deferrals	Investment in expansion or opening of bookstores. The totally new own investment, made by individuals or companies in expansion or opening of new bookstores or branches of those already established, is deductible from the investor's gross income up to a value equivalent to 10 000 UVT (USD$ 90 770).	Law 98 of 1993	30
DF4	Deferrals	Investment in non-conventional energy sources. Taxpayers obliged to submit a tax return who directly make investments in non-conventional energy sources can deduct from their income, in a period not exceeding 15 years, from the following year in which the investment has come into operation, the 50% of the total investment made.	Law 1715 of 2014 Law 2099 of 2021	11 8
DF5	Deferrals	Investment in performing arts infrastructure. Investments made in infrastructure projects for enabled stages or infrastructure for existing enabled stages, specifically intended for public performances of the performing arts, will be deductible from income tax by 100%.	Law 493 of 2011	4
DF6	Deferrals	Investment in research, technological development and innovation. Taxpayers can deduct the value of investments made in research, technological development and innovation, according to the conditions of the National Council of Tax Benefits in Science, Technology and Innovation (CNBT). This is deductible in the taxable period in which is carried out.	Law 6 of 1992 Law 1955 of 2019	4 170
DF7	Deferrals	Investment such as prepaid expenses, establishment expenses, research, development and innovation. Deduction for investments such as prepaid expenses, establishment expenses, research, development and innovation, applies to taxpayers who keep accounting. For all cases, the aliquot to be deducted per year cannot exceed 20% of the fiscal cost.	Law 1819 of 2016	84
DF8	Deferrals	Investments under mega-investment regime. The taxpayers of the mega-investment regime, who make the new investments, can depreciate their fixed assets in a maximum period of two (2) years, regardless of the useful life of the asset.	Law 2010 of 2019	75
DF9	Deferrals	Petroleum exploration in contracts in force as of October 28, 1974. Deduction for Petroleum Exploration in Contracts in Force as of October 28, 1974. In the case of explorations in search of petroleum carried out from the 1st. of January 1955 that correspond to areas whose oil subsoil has been recognized as privately owned or to concessions or associations in force on October 28, 1974, directly by individuals or by companies with farms in production, a deduction is granted for amortization of investments of all kinds, made in explorations charged to the income of farms in the country, a rate of ten percent (10%) of the respective investment.	Legislative Decree 2310 of 1974	10
C1	Tax credit	Donation to support the immunization of the population against Covid-19 (50%). Tax credit equivalent to 50% of the donation made to achieve the immunization of the population Colombia against Covid-19 and any other pandemic.	Law 2064 of 2020	40
C2	Tax credit	Donations received through Icetex (25%). Tax credit equivalent to 25% of the value of donations received through Icetex, directed to programs of scholarships that finance the training and education of those who enter the Public Force.	Law 2130 of 2021	2
C3	Tax credit	Donations to certain non-profits (25%). 25% of donations granted to non-profit entities qualified under the CIT special tax regime and to CIT non-taxpayers stated in articles 22 and 23 of the Colombian Tax Code.	Law 1819 of 2016	105
C4	Tax credit	Donations to higher education and science (25%). 25% of donations made through institutions of higher education or the Colombian Institute of Educational Credit and Technical Studies Abroad (ICETEX), addressed to programs of scholarships or forgivable credits, that are approved by the Ministry of Education, and that benefit students from 1, 2 and 3 economic levels. 25% of donations received by the National Fund for the Financing of Science, Technology and Innovation, Francisco José de Caldas Fund, that are destined to the financing of science, technology and innovation projects.	Law 1955 of 2019	171
C5	Tax credit	Donations to support science, technology and innovation (25%). Tax Credit equivalent to 25% of the value of donations received by the National Financing Fund for the Science, Technology and Innovation, Francisco José de Caldas Fund, aimed at financing of Science, Technology and Innovation Programs and / or Projects, according to the conditions of the National Council of Tax Benefits in Science, Technology and Innovation (CNBT).	Law 1819 of 2016 Law 1955 of 2019	104 171
C6	Tax credit	Donations to the entrepreneurship and innovation agency (25%).Tax credit of 25% of the donations made to the entrepreneurship and innovation agency of the government iNNpulsa.	Law 2069 of 2020	41
C7	Tax credit	Input VAT paid on fixed capital assets. Capital goods input VAT paid on the import, formation, construction or acquisition of real productive fixed assets can be credited in the tax year in which they pay the VAT or in any subsequent tax years.	Law 2010 of 2019	95
C8	Tax credit	Investment in research, technological development and innovation (25%). Tax credit equivalent to 25% of the value of investments made in research, technological development and innovation, according to the conditions of the National Council of Tax Benefits in Science, Technology and Innovation (CNBT). The excess originated in the tax credit can be taken in the 4 taxable periods to the one in which the investment was made.	Law 1819 of 2016 Law 1955 of 2019	104 171	X
C9	Tax credit	Remuneration to the employment with a doctorate degree. 25% of the remuneration corresponding to the employment of personnel with a doctorate degree in income-contributing companies, as long as the criteria and conditions defined by the CNBT for this purpose are met and their employment is associated with the development of activities of R+D+i. (Research + Development + Innovation)	Law 1955 of 2019	171
C10	Tax credit	Local turnover tax (50%-100%). 50% of local turnover tax (municipal tax) paid in the corresponding tax year (2020 and 2021). 100% of local turnover tax (municipal tax) paid from 2022.	Law 2010 of 2019	86
C11	Tax credit	Scholarships and support for talented athletes. Tax credit for agreements with Coldeportes to assign study scholarships and support for talented athletes or sports reserves.	Law 1955 of 2019	190
SR1	Special regime / Increased rate (Negative TE)	Withholding tax (CIT recapture tax) Dividends, are taxed first at the CIT rate of 32% in 2020, (31% in 2021 and 30% as from 2022 onwards) and then again at a withholding tax rate of 10% for dividends exceeding 300 UVTs while dividends below that amount are not taxed.	Law 1819 of 2016 Law 2010 of 2019	6 35
SR2	Special regime	Simple Regime (RST). The SIMPLE regime is a preferential tax regime for small and medium enterprises.	Law 2010 of 2019	74