Legal Bulletin


DECREE 2150 OF 2017

The Government issues a macro-decree which contains the guidelines for the tax treatment of non-profit entities that belong to the Special Tax Regime

Donations to non-profit entities belonging to the Special Tax Regime will have a tax credit treatment for the donor, of 25% of the value of the donation


By means of Decree 2150 of 2017, the Ministry of Finance regulated, among others, the application of the tax credit for donations, the requirements for its admissibility, the reporting obligation, the opportunity of the tax credit and the applicable limits.

Among the requirements for the recognition of the tax credit equivalent to 25% of the value donated in the income tax, it is required:

  1. That the beneficiary entity of the donation meets the conditions established in article 125-1 of the Tax Code and also, the qualification in the Special Tax Regime of the income tax.
  1. That the donee issues a certification addressed to the donor, signed by the legal representative, public accountant or tax auditor of the granting entity stating the date of the donation, the value, the way in which the donation was made and its destination, according with article of Decree 2150 of 2017.

Additionally, Decree 2150 establishes the requirements that non-profit entities must comply with in order to qualify to the Special Tax Regime and the formula to be used for calculating the taxable benefit of these entities.

Finally, according to the Decree, all non-profit entities shall carry out a registration process before DIAN before April 30th 2018, in order to be a part of the Special Tax Regime.