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DIAN REVENUE RULING

Application of Tax Benefits for Investments in the Environment

The Colombian Tax Authority issued a Revenue Ruling analyzing whether the benefits on income tax and VAT for investments in the environment could be applied concurrently

  

Through the Revenue Ruling No. 023209 of August 28th 2017, the Tax Authority considered that the discount for investments carried for control, conservation and improvement of the environment and the VAT exclusion for equipment destined to construction, installation, assembly and operation of control systems for compliance of environmental standards, are benefits that can be applied concurrently by taxpayers.

For being able to receive both benefits, the VAT-excluded equipment hall be destined for an investment in control and improvement of the environment. Additionally, the Tax Authority considered that the deduction for depreciation of the equipment can be applied concurrently.