Law 788/2002, establishing ... - Colombia - Climate Change Laws of the World

Colombia

Law 788/2002, establishing the Tax Reform

Legislative

Law

Passed in 2002

The comprehensive tax reform introduces several provisions in support of the development of renewable sources of energy. The sale of electricity from wind energy, biomass or agricultural waste is to be exempted from income tax for 15 years, as long as the following criteria are satisfied: participation in CO2 permit trading in accordance with the Kyoto Protocol, and reinvestment of at least 50% of revenues from the sale of permits in social projects situated within the area served by the utility.

In addition, it was established that the importation of machinery and equipment for the project which generate GHG reduction certificates will be exempt from sales tax (IVA), both on the product and on related services.