Tax benefits of Law 2380 of 2024: donate and deduct taxes

Every year-end, several companies in the southern Aburrá Valley write to us with the same question: "If we donate to a foundation, do we really save on taxes or is it just a myth?" The short answer is yes, and starting in 2024 the savings can be even greater. tax benefits of Law 2380 of 2024 The income tax deduction for certain donations has been expanded: the general rule remains a 251% deduction on the value donated to a non-profit organization under the special tax regime, but the new law has increased it to 371% when donating food suitable for human consumption and hygiene products to food banks. Here we explain what has changed, how much you can deduct, and how to do it correctly.

We are Hepacom, a foundation for dignified housing (non-profit organization with Tax ID 900.841.914-1) that supports families in the southern Aburrá Valley. We are not tax advisors or affiliated with the Colombian Tax and Customs Authority (DIAN), but we work daily with companies and individuals who want to make responsible donations and take advantage of the incentives offered by law. That's why we've compiled verified information from official sources here, so you and your accountant can make informed decisions based on clear data, not hearsay.

What changed with Law 2380 of 2024 for those who donate?

What changed is concrete. Law 2380 of 2024, The law, enacted on July 15, 2024, was created to promote food donations and advance toward "zero hunger" in Colombia. To achieve this, it added a paragraph to Article 257 of the Tax Code and increased the income tax deduction to 371% of the donated value when the donation consists of food suitable for human consumption or hygiene and cleaning products delivered to food banks. Furthermore, these same types of goods were exempted from VAT. Before the law, all donations to entities under the special tax regime received a 251% deduction; this minimum remains, and now a reinforced incentive for food security has been introduced.

If you're looking for the big picture, we have separate guides on how to company receives tax benefits when donating and how donate to a foundation and deduct taxes. This guide focuses on what's new: the reform of Law 2380.

How much can your company discount for donating to a foundation?

It depends on what you donate and to whom. Since it's a tax credit—not a deduction—the amount is subtracted directly from the income tax payable, not from gross income, and that's why it has a greater impact than it seems. This table summarizes the three scenarios outlined in the regulation.

There is a limit to keep in mind: Article 258 of the Tax Code establishes that these discounts, when added together, cannot exceed 251% of the company's income tax liability for the year. And if you don't manage to use the entire discount, Law 2380 allows you to carry over the excess to the next four tax periods.

Common mistakes when applying the discount

• Confusing discount with deduction: Form 25% or 37% is subtracted from the tax payable, not from gross income. Treating it as a deduction will result in an incorrect calculation and the DIAN (Colombian Tax Authority) will reject it.
• Believing that every donation gives the 37%: That percentage is exclusively for food and hygiene products donated to food banks. The rest remains under the general 25%.
• Donate without requesting a donation certificate: Without that support signed by the entity, the DIAN does not accept the discount, no matter how real the donation was.

Which donations qualify for the 37% discount?

Form 37% is not for just any donation. Law 2380 reserved it for a specific case: food fit for human consumption and hygiene and cleaning products donated to food banks established as non-profit entities, food banks of religious organizations, or their associations. The benefit even covers the transportation costs and expenses you incur to make these goods available to the food bank. On the other hand, if your company donates money, building materials or other assets to a foundation with a different purpose—such as housing—the applicable incentive is the general discount of 25%, not 37%. It's important to be clear about this to avoid promising management savings that are not warranted.

How is the discount applied and what document do you need?

The discount isn't automatic: you have to put up with it. The key is the donation certificate Signed by the legal representative of the receiving entity and, when applicable, by the accountant or auditor, this document must indicate the date, the type of donated asset, its value, and its intended use. Without this certificate, the DIAN (Colombian Tax Authority) will not accept the discount. It is also advisable to confirm that the foundation is registered with the DIAN. special tax regime, Because only donations to entities within the RTE (as opposed to non-taxpayers under Articles 22 and 23) qualify for the discount. For details on each requirement, the DIAN explains it in its concept regarding donations to entities under the special regime.

Does donating to Hepacom provide tax benefits?

Yes, within the general tax regime. Hepacom is a non-profit organization under the special tax regime, so a donation in cash or goods entitles you to the 25% tax discount under Article 257, with the corresponding certificate. It does not qualify for the 37% tax discount because that percentage is reserved for food and hygiene products donated to food banks, which is a different category than ours. And what's truly valuable, beyond the amount, is where your contribution goes: each donation becomes materials, improvements, and support to help a family in the Aburrá Valley go from a house with a dirt floor to a... decent housing. The tax incentive is the push; the result is a family with a secure roof over their heads.

How Hepacom accompanies you

If your company wants to donate and take full advantage of these benefits, at Hepacom we provide you with a valid donation certificate and transparently show you how every peso is invested. We don't charge fees or handle paperwork with the Colombian Tax Authority (DIAN)—your accountant does that—but we do provide the information and supporting documentation so that the donation is recognized, both for tax purposes and for the human benefit it brings. Contact us at donaciones@hepacom.org or from contact us We'll coordinate a donation that benefits both your company and a family in need. If you're still deciding who to donate to, see how. choosing a reliable foundation.

Frequently Asked Questions

Does Law 2380 of 2024 apply to individuals or only to companies?
The discount under Article 257 is available to income tax payers who donate to entities under the special tax regime, whether they are legal entities or individual taxpayers, provided they have a donation certificate. Your accountant will confirm how this is reflected on your tax return, based on your specific situation.

Can I deduct the donation from my income?
No. Since the reform, it is no longer an income deduction, but a discount that is subtracted from the tax due (25% or 37% as the case may be), with the limit of 25% of the tax set by article 258.

What happens if the discount is greater than my tax this year?
Law 2380 allows you to transfer the surplus that you cannot use up to a maximum of four subsequent tax periods, within your private settlement of the same tax.

Does every foundation entitle you to the discount?
No. Only those classified under the special tax regime (or non-taxpayers under articles 22 and 23). Before donating, request the certificate and verify the RUT (taxpayer identification number) and the entity's classification.

Last updated: July 2026. This is an informational guide, not tax advice. Percentages, limits, and requirements are defined by the DIAN (Colombian Tax Authority) and the Tax Code and are subject to change; consult your accountant and verify on the official channels. Hepacom does not charge fees or manage tax payments or procedures.