DIAN issues revenue ruling on tax benefits for companies that invest in the development of patents.

Revenue Ruling No. 31709 of November 4, 2015


In its Revenue Ruling No. 31709 of 2015, DIAN differentiated patents and Projects of Scientific Character. A patent is a right given by the State to an inventor, in recognition for the investment and effort made in order to achieve a technical solution that provides benefits to humanity. Projects of Scientific Character are the integral and coherent activities, resources and instruments employed for achieving specific goals, with a defined methodology, in a determined period of time for improving a situation, satisfying needs or solving problems.

Those who invest in the development of patents acquire the following benefits:

  1. The resources taxpayers receive for developing projects qualified as scientific, technological or of innovative character, as well as the payments received by individuals for the direct execution of these kinds of activities, are not considered as taxable income or capital gains.
  2. It is possible to deduct up to 175% of the value invested in projects qualified of scientific, technological or innovative character, in the respective fiscal period in which the investment was made, without exceeding 40% of the taxpayer taxable income.
  3. Exempt income for new medicinal products and software made in Colombia for a period of ten (10) years since the expedition of Law 788 of 2002.
  4. Sales of imports destined for the development of projects qualified as scientific, technological or of innovative character by investigation and technological development centers recognized by Colciencias are VAT exempted.