Colombian Tax law incentives investment, thus it recognizes an additional 30% deduction in Fixed Real Productive Assets.

1.Tax Benefit

Since 2007, Colombian tax law allows companies and natural persons whom invest in Fixed Real Productive Assets to deduct an extra 30% of their income tax statement. Thus it recognizes a value of 130% of the asset the year that the investment is done, even when it is purchased through a lease.

2.What is considered a Fixed Real Productive Asset?

There is no list established by law, thus the definition is set by jurisprudence of the Administrative Supreme Court (Consejo de Estado).

• Tangible goods and non tangible goods which are not sold in the ordinarily, within the economic activity of the tax payer.
• It is imperative that there is a relation between the goods that are produced and the Fixed Real Productive Asset.

For further information about what is considered a Fixed Real Productive Asset, please contact the National Tax and Costumes Administration (DIAN) and explain each case.