Colombia: “Works for Taxes” mechanism implemented for Bogotá

Mechanism for taxpayers to pay district taxes through executed projects

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March 26, 2025

Decree 54 (dated February 6, 2025) implemented the “Works for Taxes” mechanism for the capital district of Bogotá.

Natural and legal persons with gross district income equal to or greater than 33,610 UVT (COP $1,581,855,000 for 2024) may use the mechanism to obtain recognition of the value of projects executed in the district in Titles for the Renewal of the District Territory (TRTD), which may be used to pay district taxes and/or to settle tax debts or negotiate them.

District taxpayers who plan to access this mechanism must consider the following conditions:

  • The investment may not exceed 30% of the taxpayer's book assets.
  • The quota and bank for investment projects eligible for financing through the agreement modality will be authorized by the District CONFIS through a call for proposals.
  • The Operational Manual of the Works for Taxes Mechanism (MOMOI) will establish the sectoral technical guidelines and projects of social significance and strategic importance for compliance with the Economic and Social Development and Public Works Plan of the capital district of Bogotá.

Read a March 2025 report (Spanish) prepared by the KPMG member firm in Colombia

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