Corporate donations: tax benefits

For every peso your company donates to an authorized foundation, you can deduct 25 cents directly from your income tax. This isn't just any deduction: it's a tax credit that lowers, peso by peso, what you pay to the Colombian tax authority (DIAN). And at the same time, that money becomes a roof over a family's head for a home they currently lack.

Here we explain how it works corporate donation To learn about housing foundations, what you need to qualify for the benefit, and how you can partner your company with Hepacom without complicated procedures. The tax information you'll read here is general, not advice: always confirm it with your accountant.

Why corporate donations are beneficial

There are three concrete reasons, and none of them are empty marketing. The first is financial: corporate donations to a non-profit organization under the Special Tax Regime entitle the donor to a 25.1% discount on their income tax. The second is impact-related. In Colombia, the housing deficit reaches 25.6% of households—4.8 million families according to DANE (National Administrative Department of Statistics)—and 75.1% of that deficit is qualitative: houses that exist but have dirt floors, lack bathrooms, or have walls that don't provide adequate protection.

The third reason is reputational. A company that contributes to decent housing has a real story to tell its clients, its team, and its partners. It's not just a logo in a brochure: it's a building that can be visited, photographed, and showcased.

how the tax benefit works

The discount is outlined in Article 257 of the Tax Code. The process is straightforward: your company donates to an authorized non-profit organization, receives a donation certificate, and uses this certificate to apply a discount equivalent to 25% of the donated amount against its annual income tax.

It's important to understand the difference that many overlook. A deduction lowers the taxable base; a tax credit, like this one, lowers the tax itself. That's why it has a greater impact. If you'd like to see the calculation step by step with an example, we explain it in our guide on [topic missing]. How to donate and deduct taxes in Colombia. You can review the official text of the regulation in the Article 257 of the Tax Code.

What does your company need for the benefit to be valid?

Basically, two things. First, the foundation must be registered under the Special Tax Regime (RTE). Not every social organization qualifies; it must be formally registered with the DIAN (Colombian Tax Authority). Second, you need the donation certificate, which is the document that verifies the amount and date of the contribution and which your accountant needs to apply the discount.

Hepacom meets both requirements. We are the Hechos Para la Comunidad Foundation, NIT 900.841.914-1, registered as ESAL S0001780, based in Itagüí with national reach. Every company that donates receives a certificate, and our financial information is publicly available: you can review it on our website. transparency before committing a single penny.

how much does the discount represent in practice?

Think of it this way with a simple example. If your company donates 20 million pesos to a non-profit organization in the RTE (Regional Taxpayer Registry), the 25% discount is 5 million pesos that you no longer pay in rent. The net cost of your contribution decreases, and the difference stays behind, working on the project: materials, labor, helping a family move from a shack to a solid home.

We don't promise this replaces professional advice. The exact benefit amount depends on your tax return, applicable limits, and your specific circumstances. That's why we emphasize: use this guide to understand the logic and let your accountant do the detailed calculations. What we can guarantee is the certification and transparency regarding where every penny goes.

How to partner your company with Hepacom

The first step is a conversation, not a contract. You tell us what kind of contribution you have in mind—a one-time donation, sponsoring a project, or a long-term partnership—and we'll show you which project it would fit into and what impact it would have.

Contact us via WhatsApp at +57 300 143 7951 or by email at contactanos@hepacom.org. You can also leave your information at contact us And we'll find you. If you want to understand the other side of partnering—volunteering and social strategy beyond the benefits—check out our article on Corporate social responsibility applied to housing.

Requirements for your company's donation to be tax-valid

In Colombia, a corporate donation only generates a tax benefit if it meets certain formal requirements. Simply transferring the money is not enough: the receiving entity must be authorized to make donations, and the donation must be properly documented. This table summarizes the general requirements; the specific percentages, limits, and treatment in the income tax return are defined by current regulations and should be confirmed with your accountant or the Colombian Tax Authority (DIAN) before filing.

Requirement	Why it matters
Authorized non-profit entity	Only donations to entities under the Special Tax Regime entitle the donor to the benefit.
Donation certificate	It is the supporting document that backs up the contribution to the DIAN (Colombian Tax Authority).
Accounting record of the donation	It allows the contribution to be reflected in the accounting records and in the tax return.
Verification with accountant or DIAN	The limits and the exact calculation depend on current regulations and the company's profile.

General requirements. The calculation of the benefit and its limits must be confirmed with an accountant or with the DIAN; this information does not replace professional advice.

Common mistakes with the tax benefit for donations

• Assume a fixed discount percentage: The tax treatment depends on the current regulations and the type of taxpayer; it is advisable to calculate it with an accountant, not estimate it from memory.
• Donating to an unauthorized entity: If the organization does not belong to the Special Tax Regime, the donation does not generate the benefit even if the contribution is real.
• Do not ask for the donation certificate: Without that support, the company cannot substantiate the contribution to the DIAN.

Frequently Asked Questions

What percentage discount can my company offer when donating?

The 25% of the donated value is directly deducted from income tax, according to Article 257 of the Tax Code, provided the foundation is under the Special Tax Regime and issues the donation certificate. This is general information; your accountant will confirm the calculation based on your tax return.

Is the donation a tax deduction or discount?

It's a tax credit, which reduces the tax payable directly, not just the taxable base. That's why its effect is greater than that of a regular deduction. The final amount depends on your situation, so check with your tax advisor.

What document will you provide as supporting documentation?

A donation certificate showing the amount and date of the contribution. This is the document your accountant uses to claim the tax deduction on your tax return. Hepacom issues this certificate to each donating company.

Is Hepacom eligible to receive tax-deductible donations?

Yes. We are a registered non-profit organization (S0001780, NIT 900.841.914-1) and our information is available on our transparency page. You can review it before donating and send us any questions via WhatsApp at +57 300 143 7951.

This guide is part of our Complete guide to decent housing in Colombia, where we bring together how to access housing and how to help another family have their own.