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Works for taxes (obras por impuestos) in Colombia: paying up to half of income tax by building projects in conflict affected areas

Last verified: 2026-10-27 · Status: Stable

Colombia lets larger income taxpayers turn part of their income tax into public works in the municipalities most affected by the armed conflict (ZOMAC) and in PDET municipalities. There are two routes: the trust route of Ley 1819 de 2016 art. 238, where a company pays up to 50 percent of its assessed income tax by funding an approved project, and the agreement route of Estatuto Tributario art. 800-1, where the taxpayer builds a project under an agreement with a national entity and is paid in negotiable Títulos para la Renovación del Territorio (TRT) usable for up to 50 percent of income tax. Both require gross income of at least 33,610 UVT (about COP 1,760,290,140 at the 2026 UVT) and projects approved by the Agencia de Renovación del Territorio (ART) with the Departamento Nacional de Planeación.

USD figures use the TRM (tasa representativa del mercado) of COP 3,157.94 per US dollar, valid 27 October 2026, from the official TRM series certified by the Superintendencia Financiera and published on the national open data portal. Conversions are for orientation only.

Key facts

Minimum gross income to use works for taxes	33610 UVTEstatuto Tributario art. 800-1; Ley 1819 de 2016 art. 238, as of 2026-10-27 · in force
Minimum gross income to use works for taxes at the 2026 UVT of COP 52,374	1760290140 COPEstatuto Tributario art. 800-1; DIAN Resolución 238 de 2025, as of 2026-10-27 · in force
Maximum share of assessed income tax payable through a works for taxes project (trust route) or with TRT (agreement route)	50 %Ley 1819 de 2016 art. 238; Estatuto Tributario art. 800-1 num. 6 lit. n, as of 2026-10-27 · in force
Cap on works for taxes agreement commitments, share of prior year book equity	30 %Estatuto Tributario art. 800-1, as of 2026-10-27 · in force
Penalty for definitive non completion under the trust route, share of amount executed	100 %Ley 1819 de 2016 art. 238, as of 2026-10-27 · in force
Minimum term of contractors' stability guarantees after delivery (trust route)	4 yearsLey 1819 de 2016 art. 238 num. 4, as of 2026-10-27 · in force
Tax value unit (UVT) for 2026	52374 COPDIAN Resolución 238 de 2025, as of 2026-10-27 · in force
TRM used for USD conversions (valid 27 October 2026)	3157.94 COP per USDResolución Externa 1 de 2018 of the Board of Banco de la República, art. 40 (TRM), as of 2026-10-27 · in force

The rule

1. Companies that are income taxpayers with gross income of at least 33,610 UVT in the tax year may pay up to 50 percent of the income tax assessed in their return by investing that amount directly in viable, prioritized projects of social importance in ZOMAC municipalities approved by the ART with the prior approval of the DNP, in drinking water, sewerage, energy, public health, public education or road construction and repair. The taxpayer chooses the project within the first three months of the following year, with its board's approval, by writing to DIAN, DNP and ART. Once approved, it deposits the full amount in a trust dedicated to the project, hires a project manager and contractors through open private tender, requires contractors to post guarantees in favour of the Nation for at least 4 years after delivery, and delivers the finished work. The tax obligation is extinguished only on delivery of the completed work with the supervisor's approval; delays accrue late payment interest, and definitive non completion means paying the tax in cash with interest plus a penalty equal to 100 percent of the amount executed.
Cost to do it: The project cost replaces up to 50 percent of the income tax; the trust, project manager and supervision costs are borne inside the project budget (supervision must be included in the project budget).
Example: A company with assessed income tax of COP 2,000,000,000 may allocate up to COP 1,000,000,000 to an approved ZOMAC project and pay the other COP 1,000,000,000 in cash. / About US$316,662 of a US$633,324 tax bill can go into the project.Ley 1819 de 2016 (Diario Oficial 50.101 of 29 December 2016), Art. 238, first to eighth paragraphs, 2016-12-29 official text · verified 2026-10-27

2. A taxpayer funding ZOMAC infrastructure projects above 50 percent of its tax may use the trust contributions as a discount of up to 50 percent of its income tax, in equal instalments over 10 years from the start of works (par. 2). Several taxpayers may fund one project together (par. 3). CONFIS sets an annual ceiling of approved projects, distributed among ZOMAC by the ART (par. 4). Mining, hydrocarbon and large taxpayer port concession companies may use the mechanism, with priority for ZOMAC that coincide with PDET municipalities (par. 5, added by Decreto Ley 883 de 2017). Taxpayers may choose between this mechanism and the agreement route of Estatuto Tributario art. 800-1 (par. 7, Ley 2010 de 2019 art. 78).Ley 1819 de 2016, art. 238 par. 2 to 7 (par. 5 and 6 added by Decreto Ley 883 de 2017 art. 2; par. 7 as amended by Ley 2010 de 2019 art. 78), Art. 238, par. 2, 3, 4, 5 and 7, 2019-12-27 official text · verified 2026-10-27

3. Individuals or companies required to keep accounts that are income taxpayers and had gross income of at least 33,610 UVT in the previous year may sign agreements with national public entities to execute projects and receive negotiable Títulos para la Renovación del Territorio (TRT) in exchange. Investment commitments may not exceed 30 percent of the taxpayer's book equity of the previous year. Projects may be in ZOMAC and PDET municipalities in drinking water and basic sanitation, energy, public health and education, rural public goods, climate adaptation and risk management, payments for environmental services, ICT, transport, productive, cultural and sports infrastructure, rural social housing and others in the operating manual. The procedure is: expression of interest with board approval, structuring, viability opinions from the sector entity and DNP, ART approval by an unappealable administrative act, and signature of the agreement; TRT are paid on delivery, or against milestones for projects longer than one year. TRT may be used by any holder to pay up to 50 percent of income tax.
Cost to do it: Commitments capped at 30 percent of prior year book equity; the taxpayer must post the guarantees the national entity requires, and the supervision contract cost is part of the project value.
Example: A taxpayer with prior year book equity of COP 10,000,000,000 may commit at most COP 3,000,000,000 in works for taxes agreements. / About US$949,986 of commitments on equity of about US$3,166,621.Estatuto Tributario art. 800-1 as amended by Ley 2010 de 2019 art. 79; second paragraph as amended by Ley 2294 de 2023 art. 294; third paragraph as amended by Ley 2277 de 2022 art. 26, Art. 800-1, first to third paragraphs, num. 1 to 6 lit. n, 2023-05-19 official text · verified 2026-10-27

4. Agreements under art. 800-1 are governed by private law and may include arbitration clauses under Ley 1563 de 2012; contracts and subcontracts must be at market prices, with transparency conditions where subcontractors are related parties; the agreements are treated as part of the taxpayer's income producing activity, are not subject to income tax withholding or self withholding, and do not give access to the art. 258-1 or other tax benefits. Taxpayers may not use the mechanism for projects they are already obliged to carry out by law, administrative act or court order, and mining and hydrocarbon companies and large port taxpayers may not build physical infrastructure causally linked to their income producing activity. Companies with income tax debts may pay them with TRT; several taxpayers may share one project; CONFIS approves the maximum project quota.Estatuto Tributario art. 800-1 as amended by Ley 2010 de 2019 art. 79, Art. 800-1 num. 6 lit. f, h and l, par. 1 to 4, 2019-12-27 official text · verified 2026-10-27

Feature	Trust route (Ley 1819 art. 238)	Agreement route (ET art. 800-1)
Who	Companies, gross income 33,610 UVT or more in the tax year	Individuals or companies keeping accounts, gross income 33,610 UVT or more in the prior year
Where	ZOMAC municipalities	ZOMAC and PDET municipalities, and strategic areas the ART approves
How the taxpayer is paid	Tax extinguished when the finished work is delivered	Negotiable TRT on delivery or by milestones
Limit	Up to 50% of assessed income tax	Commitments up to 30% of prior year book equity; TRT pay up to 50% of income tax
Failure	Pay the tax in cash with late interest plus a 100% penalty on the amount executed	Fines and sanctions agreed in the agreement (Ley 1474 de 2011 art. 86 procedure)
Threshold in 2026 pesos	About COP 1,760,290,140 (US$557,417)	About COP 1,760,290,140 (US$557,417)

The two works for taxes routes compared (Ley 1819 de 2016 art. 238 and Estatuto Tributario art. 800-1). USD at the TRM of COP 3,157.94, for orientation only.

Worked example

A Colombian subsidiary of a foreign group has gross income of COP 80,000,000,000 and assessed income tax of COP 2,000,000,000 (about US$633,324). Under the trust route it may pay up to COP 1,000,000,000 by funding an approved water project in a ZOMAC municipality, choosing the project in the first three months of the following year (Ley 1819 de 2016 art. 238).
Under the agreement route, with prior year book equity of COP 10,000,000,000 it may commit up to COP 3,000,000,000 (about US$949,986), and the TRT it receives may pay up to half of its income tax, or be sold to another taxpayer (Estatuto Tributario art. 800-1).

Step by step

1. Confirm eligibility: gross income of at least 33,610 UVT (COP 1,760,290,140 at the 2026 UVT) and income taxpayer status (ET art. 800-1; Ley 1819 art. 238).
2. Pick a route: trust route (tax paid through a project, ZOMAC only) or agreement route (TRT, ZOMAC and PDET); the law lets taxpayers opt for one mechanism or the other (Ley 1819 art. 238 par. 7).
3. Select a project from the ART bank or propose your own; get board approval and file the expression of interest with ART and the sector entity (ET art. 800-1 num. 1).
4. Obtain viability from the sector entity and DNP and the ART approval act, then sign the agreement (num. 3 to 5).
5. Execute at market prices, with the required guarantees, supervision and site billboard, and deliver the work or milestones (num. 6).
6. Use or sell the TRT to pay up to 50 percent of income tax (num. 6 lit. n).

Common traps

Assuming the tax is paid when the money goes into the trust. Under the trust route the obligation is extinguished only when the completed work is delivered and approved; delays accrue late payment interest (Ley 1819 art. 238).
Underestimating failure costs. Definitive non completion means paying the tax in cash with interest, handing over the work done without refund, and a penalty equal to 100 percent of the amount executed (art. 238).
Overcommitting. Agreement route commitments may not exceed 30 percent of prior year book equity (ET art. 800-1).
Claiming extra benefits. Works for taxes do not give access to the art. 258-1 discount or other Estatuto Tributario benefits (art. 800-1 num. 6 lit. h).
Using the mechanism for obligations you already have, or, for extractive and large port companies, for infrastructure linked to your own operations (art. 800-1 par. 4).
Ignoring the annual quota. CONFIS caps the total value of projects that can be approved each year (Ley 1819 art. 238 par. 4; ET art. 800-1 par. 3).

Sources

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