Colombia publishes Decree 1389 to channel Works for Taxes into earthquake reconstruction
Published · Updated
What happened
The national government published Decree 1389 on September 10 as part of reconstruction decrees signed on September 9. The decree adapts the Works for Taxes mechanism so companies can direct eligible tax payments to approved earthquake-recovery projects.
Why it matters
The decree changes the financing channel for reconstruction by allowing corporate tax liabilities to be converted into specific public works and recovery investments. That can shorten the gap between legal authorization and project execution if ministries and local entities publish eligible projects and approval procedures quickly.
Colombia made public on September 10 a package of September 9 decrees for post-earthquake reconstruction, including Decree 1389, which enables the Works for Taxes mechanism to finance eligible rebuilding projects. The measure opens a near-term route for companies to use tax obligations on approved reconstruction works across defined investment lines linked to quake damage. For the government, the decree creates a delivery tool that can mobilize private execution capacity while testing how quickly ministries can turn legal authority into bankable project pipelines.
Watch for
DIAN publication of operational guidance on how taxpayers can apply Obras por Impuestos under Decree 1389 by 2026-09-14 Ministry of Finance release of eligible reconstruction investment lines or fiscal quota details for the decree by 2026-09-14 ART or the competent reconstruction authority publication of the first bankable project list tied to quake-affected municipalities by 2026-09-14 ANDI or Consejo Gremial confirmation of member-company applications or intent letters for Decree 1389 projects by 2026-09-14