Tax incentives for investments in non-conventional energy sources 

 DIAN Revenue Ruling No. 260 of April 1st 2016


In the Revenue Ruling, the Colombian Tax Authority clarifies that it is not possible to be beneficiary simultaneously of the special deduction set out on Section 158-2 of the Colombian Tax Code, and Section 11 of Law 1715 of 2016. This, taking into account that Section 23 of Law 383 of 1997 established that one economic event may not generate more than one tax benefit for the same taxpayer. In addition, it is mentioned that only tax benefits may concur when the deductions are authorized by law and they do not have direct causal link with income and tax discounts.

The Tax Authority also established that it is possible for the taxpayer to acquire both benefits set for income tax and VAT, in the event that the required certifications have been obtained. Moreover, it is clarified that the certification of Environmental Benefits issued by the Ministry of Environment and Sustainable Development with respect to pre-investments and investments that contribute to the production and use of energy from non-conventional energy sources, is acceptable for requesting all of the benefits in custom duties, income tax and VAT.