Colombian fiscal residents and companies considered as Colombian income taxpayers may obtain a 50% tax discount on the donations made during the corresponding taxable year to the Covid-19 Emergency Mitigation subaccount of the Risk and Management National Fund. This tax discount does not include any balances in favor that could be reimbursed.

These donations must be intended for the acquisition of vaccines, experimental molecules, reimbursable and non-reimbursable down-payments to develop vaccines, transferring of science and technology, and other activities intended to implement the immunization program against Covid-19.

This tax benefit set forth in Article 3 of Law 2064 of 2020 (incorporated in Section 257-2 of the Colombian National Tax Code), will only apply for 2021 and 2022. Additionally, these donations must be previously certified by the Health and Social Protection Ministry and by the Risk and Management National Fund’s Director.

Lastly, the local and international health sector cannot apply for the tax benefit, including the health promoter companies (EPS) and the health provider institutions (IPS).

For further information, do not hesitate to contact us.

Author

Camilo Chávez | cchavez@lloredacamacho.com | Tax law