Article 125-2. Types of donations.

Donations that allow deductions must cover the following modalities:

1. When money is donated, payment must have been made by check, credit card, or through a financial broker.

2. When -securities- *** are donated, they will be valued at market price in accordance with the procedure established by the Superintendence of Securities (today called the Superintendence of Finance). When other assets are donated, their value will be estimated by the cost of the acquisition plus ** -adjustments for inflation- made until the date of the donation, subtracting the accumulated depreciation until that date.

* -Added- PARAGRAPH 1. In any case, when other assets are donated, their value will be the lower of either the commercial value or the fiscal cost of the donated asset.

* -Added- PARAGRAPH 2. Unconditional donations made by the donor must be recorded as income that will result in exempt income provided that they are destined for the stipulated activity. If the donor has made a conditional donation, it must be registered directly as part of the wealth in order for the donation and its returns to be used in the stipulated activities.

Article 125-3. Requirements to accept the deduction.

* -Amended- in order to recognize the deduction for donations, a certification from the donating entity is required that is signed by the tax inspector or account and in which the form, amount, and destination is specified in the previous articles. The deduction for the donation will in no case be carried out for shares, quota-shares or stakes, securities, rights or debts, or portions in entities or corporations.

Article 125-4. Deduction requirements for donations.

Deductions for donations established in special provisions shall be granted under the conditions set forth in Article 125 of the Tax Statute. For the purposes set forth in point 2 of Article 125 of this Statute, the donations made to political parties or movements approved by the National Electoral Council shall also be taken into consideration.


Article 125-5. Donations to entities that do not belong to the special tax regime.

* -Added- Donations made to non-profit entities that are not part of the special tax regime will not be deductible from income and will be taxable income for the receiving entities.

If it is determined that due to the donation there is tax avoidance, sanctions will be made and imposed on both entities, both the recipient and the donor.

PARAGRAPH. The donations made to the entities that are outlined in Articles 22 and 23 of this Statute will follow the rules established in Article 257 of the Tax Statute.

Article 158-1. Deduction for donations and investments in research, technological development, and innovation.

* -Amended- Investments made in research, technological development, and innovation, in accordance with the criteria and conditions set forth by the National Council of Economic and Social Policy through the updating of the CONPES 3834 of 2015 document, will be deductible in the taxable period in which they are made. This does not exclude the rebate referred to in Article 256 of the Tax Statute being applied when the conditions and requirements that are stipulated therein are fulfilled.

The same procedure anticipated in this article will be applicable to donations made through the Higher Education Institutions or the Colombian Institute for Educational Credit and Technical Studies Abroad (ICETEX for its acronym in Spanish), which are directed at scholarship programs or forgivable loans that are approved by The Ministry of National Education, and that benefit students from socio-economic strati 1, 2, and 3 through scholarships for full or part-time study or forgivable loans that may include upkeep, accommodation, transport, fees, supplies, and books. The national Government will regulate the conditions for the allocation and functioning of scholarship and forgivable loan programs that are referred to in this article.

PARAGRAPH 1. The National Council for Tax Benefits in Science, Technology, and Innovation (CNBT for its acronym in Spanish) will annually define the total maximum amount of the deduction provided for in this article and of the rebate established in Article 256 of the Tax Statute as well as the maximum annual amount that the companies can individually request as a deduction and rebate for investments or donations that are referred to in Paragraph 3 of Article 256 of the Tax Statute that are effectively made in that year. The national government will establish through regulations that a specific percentage of the total maximum amount of the deduction that is referred to in this article and of the rebate that is referred to in Article 256 of the Tax Stature is to be invested in research projects, technological development, and innovation in small and medium-sized businesses (SMBs).

When submitting Science and Technology + 1 projects that have investments higher than the amount indicated above, the taxpayer may request from the National Board of Tax Benefits that the ceiling is increased as this would be both beneficial and desirable. In the case of multi-year projects, the maximum amount established in this sub-paragraph will still hold in the years during which the qualified project is being implemented, notwithstanding using a higher value for a year in which the National Board of Tax Benefits establishes a higher amount.

PARAGRAPH 2. The costs and expenses that result in the deduction referred to in this article and to the rebate in Article 256 of the Tax Statute may not be capitalized or taken as a new cost or deduction by the same taxpayer.

PARAGRAPH 3. The National Council for Social and Economic Policy Document established in this article must be issued or modified before May 1^st, 2017.

PARAGRAPH 4. The taxpayers who pay the income tax and complementary taxes who have gained access to the benefit referred to in Article 158-1 of the Tax Statute before December 31^st, 2016 as part of a multi-year project, will maintain the established conditions when they are approved by the National Board of Tax Benefits regarding the corresponding project. Investments in the projects referred to in this Paragraph are not subject to that referred to in Article 256 of the Tax Statute. 

Article 256. Discount for investments made in research, technological development, and innovation

* -Amended - Individuals who invest in projects established by the National Council for Tax Benefits in Science, Technology, and Innovation such as research, technological development or innovation projects, in accordance with the criteria and conditions defined by the National Council of Social and Economic Policy, through the updating of National Council for Social and Economic Policy Document 3834 of 2015 document, will be entitled to deduct 25% of the value invested in these projects from their income tax in the taxable period in which the investment was made. The investments that are referred to in this article may be carried out by researchers, research groups or centers, research centers and institutes, technological development centers, science and technology parks, research results transfer offices, highly innovative companies, research units, companies’ technological development or innovation units, innovation and productivity centers, technology incubators, science centers and organizations that promote the use and appropriation of science, technology, and invocation, and all of the above, that are registered and recognized by Colciencias.

Projects classified as research, technological development, or innovation, that are referred to in this article, also include the hiring of new qualified and certified personnel who have either technical, professional, masters or doctorate-level qualifications by technological development or innovation research centers or groups, according to the criteria and conditions defined by the National Council for Tax Benefits in Science, Technology, and Innovation. The National Council for Tax Benefits in Science, Technology, and Innovation will define the control, monitoring, and evaluation procedures of the qualified projects and the conditions to guarantee the dissemination of the results from qualified projects, notwithstanding intellectual property rules. They will also serve as a mechanism to control the investment of resources.

PARAGRAPH 1. When qualifying the project, and to proceed with the rebates referred to in this article, environmental impact criteria must be taken into account.

PARAGRAPH 2. The National Council for Social and Economic Policy Document referred to in this article must be issued within a period of four months, starting from when this law enters into effect.

PARAGRAPH 3. The same procedure referred to in this article will be applicable to donations made to programs created by higher education institutions that are approved by the Ministry of National Education and are non-profit entities that benefit students belonging to socio-economic strati 1, 2, and 3 through full or partial scholarships that may cover living costs, accommodation, transport, fees, supplies, and books. The national government will regulate the conditions of allocation and operation of the scholarship programs referred to in this paragraph.

PARAGRAPH 4. The rebate foreseen herein is subject to what is established in paragraphs 1 and 2 of Article 158-1 of the Tax Statute.

Article 257. Discount for donations made to non-profit organizations that belong to the special regime

* -Added- Donations made to non-profit organizations that have been established as part of the special regime on income and complimentary tax and the non-contributing entities that are referred to in Articles 22 and 23 of the Tax Stature will not be deductible from income and complimentary tax; however, there will be a discount on income and complimentary tax that is equivalent to 25% of the value donated that year or taxable period. The national government will regulate the requisites for this discount to be implemented. 

PARAGRAPH. The donations made to the entities that are outlined in Articles 22 and 23 of this Statute will follow the rules established in Article 257 of the Tax Statute.

PARAGRAPH. The donations that Article 125 of the Tax Statute refer to will also result in the rebate that is foreseen in this article.

Article 258. Limitations of tax rebates that are dealt with in Article 1225, 256, and 257 of the Tax Statute.

* -Amended- The rebates that are referred to in Articles 255, 256, and 257 of the Tax Statute taken together cannot exceed 25% of the tax on income payable by the taxpayer in the respective taxable year. The surplus that has not been deducted in the year will be treated in the following way:

1. The excess that came from the rebate referred to in Article 255 of the Tax Statute may be taken within the four (4) taxable periods following that in which the investment was made in the control and improvement of the environment.

2. The excess that came from the rebate that is referred to in Article 256 of the Tax Statue may be taken within the four (4) taxable periods following that in which the investment was made in research, development, and innovation. 

3. The excess that came from the rebate that is referred to in Article 257 of the Tax Statue may be taken within the taxable period following that in which the donation was made. 

Article 258. Limitations to the tax rebates to which Articles 255, 256, and 257 of the statute refer

* -Amended- The rebates that are referred to in Articles 255, 256, and 257 of the Tax Statute taken together cannot exceed 25% of a taxpayer’s income tax in the respective taxable year. The excess that is not deducted in the year will be treated in the following way:

1.The excess that came from the rebate referred to in Article 255 of the Tax Statute may be taken within the four (4) taxable periods following that in which the investment was made in the control and improvement of the environment.

2. The excess that came from the rebate that is referred to in Article 256 of the Tax Statue may be taken within the four (4) taxable periods following that in which the investment was made in research, development, and innovation. 

3. The excess that came from the rebate that is referred to in Article 257 of the Tax Statue may be taken within the taxable period following that in which the donation was made.