Colombia introduced temporary Corporate Income Tax and Value Added Tax (VAT) incentives for qualifying private investments in earthquake-affected areas, with benefits available through 31 December 2027. The measures covered preferential tax rates, accelerated depreciation and VAT exemptions for eligible imports.
Colombia’s Ministry of Finance and Public Credit and the President issued Decreto No. 1413 of 17 September 2026, introducing temporary tax incentives to encourage private investment in areas affected by the August 10 earthquake.
The measures apply to designated municipalities across 16 departments and aim to support reconstruction, restore productive capacity and essential services, and preserve or create employment. The framework was introduced under the State of Economic, Social, and Ecological Emergency declared by Decree 1261 of 2026, as modified by Decree 1348 of 2026.
Corporate income tax incentives
Qualified projects can apply a 20% rate to net taxable income directly generated by the project for tax years 2026 and 2027.
The rate can fall by 1 percentage point for every complete 250 new direct jobs created and verified, subject to a minimum rate of 15%.
Qualifying productive property, plant and equipment (PPE) can also receive accelerated depreciation at a fixed annual rate of 50% during tax years 2026 and 2027.
VAT exemption for imports
The decree provides a Value Added Tax (VAT) exemption through 31 December 2027 for imports of raw materials, inputs and capital goods essential to qualified projects, where equivalent goods are not produced domestically.
Eligible investments and sectors
Income taxpayers, including natural persons and legal entities that are domestic or foreign residents, can qualify if they meet conditions covering minimum investment, eligible assets, direct job creation, project execution, formal approval and separate accounting.
Projects must be formally qualified by the Ministry of Commerce, Industry, and Tourism (MINCIT), which must decide applications within 15 business days. Execution must begin within 12 months of the emergency declaration.
The incentives cover five sectors, with minimum investment thresholds ranging from COP 950,000 for tourism to COP 2,350,000 for manufacturing industry and services. Construction projects are limited to the building, rehabilitation or replacement of earthquake-damaged property and regional infrastructure.
Mining, non-renewable resource exploration and extraction, wholesale and retail trade, broad real estate operations, public administration, households as employers and general education services are excluded.
Duration and compliance
The preferential Corporate Income Tax rate, accelerated depreciation and VAT exemption expire on 31 December 2027.
Projects can have a physical execution period of up to three tax years from qualification. Failure to complete the committed investment within that period can result in loss of the benefits and tax clawback.
The incentives cannot be combined with other tax incentives for the same economic activity or asset. The Tax Authority (DIAN) retains audit and verification powers, while fraud, simulation or misuse can lead to the loss of benefits and statutory tax penalties.
