DECREE OF THE MINISTRY OF FINANCE
Regulation of the “Projects and Buildings for Taxes”
The Ministry of Finance issued the regulation for companies to have access to the tax payment mechanism “Projects for Taxes”
By means of the Decree No. 1915 of 2017 the Ministry of Finance regulated the tax payment mechanism “Projects for Taxes”. With this mechanism companies have the alternative of paying their taxes and tax liabilities with the development of projects of social interest (potable water supply, sewerage, energy, education and construction or repair of road infrastructure) in the so-called ZOMAC.
To access to this tax payment mechanism, the following aspects have to be taken into account:
- It applies only for companies that in the preceding taxable year have accrued a gross income equal or greater than 33.610 UVT ($1.071.000.000).
- The tax liability shall be extinguished once it is certified that the Project is in conditions and working.
- The taxpayer shall choose the Project of a list the Territorial Renewal Agency will keep updated. Once the Project has been chosen, the taxpayer has to submit a request indicating the Project, develop it, set up a trust, transfer the amount of the taxes and finally execute and finish the Project.