These Are the Tax Benefits for a Company That Uses Sustainable Practices

Tax attorney Juan Camilo Riveira was mentioned in an article published by La República highlighting tax benefits available for companies that implement sustainable practices. Law 1715 of 2014 and Colombia's Tax Statute include measures to incentivize the adoption of projects related to renewable energy, energy efficiency and emissions reduction, such as the deduction of 50 percent of the value invested in sustainability projects and accelerated depreciation of assets. Mr. Riveira explained how these provisions work.

"The accelerated depreciation allows an accelerated amortization of the assets related to renewable energy projects and efficient energy management, such as the machinery, equipment and other tools necessary for these projects. It allows the depreciation of up to 33.33 percent of the value of the asset each year as a deductible expense from income tax," he said. "On the other hand, the tax discount: Entities that make direct investment in environmental control, management and improvement have the right to discount their income tax with 25 percent of the investments they have made in the taxable year."

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