Deducibilidad de las regalías

The Constitutional Court declared unconstitutional the prohibition to deduct for income tax purposes the non-renewable natural resources royalty payments by O&G and mining companies to the Colombian Government, recently introduced through Tax Reform Act 2277-2023.

This decision of the Court is of utmost relevance for the future of the oil and gas and mining industries in Colombia. This is mainly because it puts an end to a protracted discussion on this issue, which left the industry with legal and tax uncertainty about the right of oil and gas and mining companies to deduct their royalty payments. This means that the deductibility of royalties from income tax for the tax year 2023 should not be challenge by the Colombian Tax and Customs Directorate (DIAN).

In any case, please note that this information is provided on the basis of the press release published by the Constitutional Court, so it will be necessary to know in detail the reasons for the ruling.

If you need assistance in analyzing the impact of the Constitutional Court ruling on your business development, feel free to contact us at

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