Promulgation of Law 2380 of 2024 – Incentive for Food Donations

On July 15, 2024, the Congress of the Republic approved Law 2380 of 2024, designed to promote the donation of food suitable for human consumption and to contribute to food security in the country. This law seeks to align with the Sustainable Development Goal “Zero Hunger,” driven by the United Nations and adopted in September 2015 as part of the 2030 Agenda. It represents a comprehensive effort to combat food waste and improve nutrition among vulnerable populations.

One of the key features of Law 2380 is its encouragement of food donations to food banks, which are essential in the fight against hunger. According to Article 1, the law establishes that food banks must be constituted as non-profit entities under the Special Tax Regime. This includes banks affiliated with religious organizations recognized by the Ministry of the Interior or the law, as well as associations of food banks.

The legislation not only allows for food donations but also includes hygiene and personal care products, thus expanding the range of resources available to the most needy populations.

To incentivize the participation of businesses and citizens, the law introduces a series of tax incentives. Article 2 adds a paragraph to Article 257 of the Tax Statute, allowing donors to deduct up to 37% of the value of food donated during the taxable year or period. This deduction also includes the costs associated with transporting the donated food, further facilitating donations by reducing logistical expenses for donors.

Additionally, if donors cannot apply the benefit in the year the donation was made, they may do so in up to four subsequent taxable periods, providing greater flexibility for companies and individuals to take advantage of these tax benefits.

The new law also modifies numeral 9 of Article 424 of the Tax Statute, extending VAT exemptions to donated food as well as hygiene and personal care products directed to food banks. This aims to discourage food waste and facilitate distribution to those most in need. This measure is crucial to ensure that the donation of products does not impose additional burdens on donors.

To ensure that donated food is of high quality and meets food safety standards, Article 5 establishes that products must comply with the acceptance criteria of food banks and follow the guidelines set out in Law 1990 of 2019.

Law 2380 of 2024 not only aims to improve the food conditions of vulnerable populations but also has a positive economic impact. By reducing tax barriers for the donation of food and goods, the law encourages businesses to actively engage in the fight against hunger. At the same time, the creation or strengthening of food banks nationwide will facilitate the efficient distribution of these resources.

This approach of the law will help reduce food loss and waste, one of the most serious problems in the country’s food supply chain, and ensure that resources reach those who need them most.

Please do not hesitate to contact us if you have any questions regarding the application of the law and the benefits it offers.

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This document is for informational purposes only and does not constitute legal advice, nor does it commit the responsibility or professional opinion of Brick Abogados.