Yes. In order to encourage taxpayers in the development of certain activities, Colombian tax rules provide several tax benefits regarding the development of technologies and behaviours that can positively impact the environment. For example, section 255 of the Colombian Tax Code sets forth a tax credit equivalent to 25% of the corporate income tax, for legal entities that performed investments in the control, conservation and improvement of the environment.
In respect to VAT, Colombian tax rules set forth that, the import of equipment intended for the construction, installation and operation of control and monitoring systems, aimed for the fulfilment of environmental standards, are excluded from the value added tax,.
In addition, to incentivize the use of alternative transport methods, Law 2010 of 2019 (“Tax Reform”) has established an exclusion of VAT in the purchase of bicycles, electric bicycles, electric motorcycles and electric skateboards, among others.
Finally, Colombian tax rules also offer a tax credit for the investments made in the generation of electric energy with nonconventional renewable energy sources. The tax credit can be up to 50% of the investment made and, in addition, machinery and equipment intended to these investments are exempted from custom duties.