On November 17, 2025, the Presidency of the Republic issued the General Regulations to the Law for the Strengthening of the Armed Forces and National Police, which enable the application of up to a 30% reduction of the income tax caused. This benefit may be accessed by taxpayers who make donations to the National Police or the Armed Forces.

Donations may consist of any of the items listed below, including those from the donor’s own inventory, provided they are new when applicable:

• Vehicles (patrol cars, ambulances, armored vehicles, etc.)
• Technological equipment (radars, drones, software)
• Forensic equipment
• Weapons (non-lethal weapons and all types of firearms)
• Personal protection (vests, helmets)
• Aircraft (helicopters, airplanes)
• Others included in official catalogs

The taxable base used to calculate the Income Tax must not include the donated amount. On the other hand, the value of the donation must include VAT as part of it, when applicable. Therefore, the VAT paid on the purchase of donated goods is neither a deductible expense nor may it be treated as a tax credit.

To access the benefit, the donor must submit a letter of intent to the corresponding ministry and execute a donation instrument containing an irrevocability clause and a declaration of the lawful origin of the funds. A sales receipt or invoice issued by a local supplier is required, respecting market prices; for real estate, the maximum allowable value will be the corresponding cadastral appraisal.

This regulation also creates the Qualification and Certification Committee, responsible for issuing guidelines to identify and consolidate the needs of the National Police and Armed Forces, verifying the fiscal space and available tax expenditure, approving the catalogs of goods eligible for donation, issuing supplementary regulations, and ensuring donations comply with the maximum allowable tax expenditure. The Committee will include the General Secretariat of Public Administration, the regulatory entities for security, defense, public finance, and the Internal Revenue Service (SRI).

Within one month, the Committee must issue the regulations necessary to carry out its duties. In the same timeframe, the SRI will issue secondary regulations, and the Ministry of Economy and Finance will establish the parameters to verify the maximum allowable tax expenditure.

This benefit applies to donations completed under these rules from October 25, 2025, onward. Donations completed between January 2025 and October 24, 2025, are subject to the additional deduction provided in the Internal Tax Regime Law.