# Colombia mileage reimbursement policy: a DIAN- and UGPP-ready template

> Mileage reimbursement policy template for Colombia: approval tiers, 5-year record retention, electronic-invoice reconciliation and UGPP reclassification safeguards.

**Author:** Valentina Osorio — Colombian Tax Specialist (DIAN)  
**Published:** 2026-04-28  
**Updated:** 2026-04-28  
**URL:** https://quilometragem.com/blog/colombia-mileage-reimbursement-policy-a-dian-and-ugpp-ready-template

**TL;DR:** Mileage reimbursement policy template for Colombia: approval tiers, 5-year record retention, electronic-invoice reconciliation and UGPP reclassification safeguards.

- In Colombia, mileage reimbursement for personal-vehicle use on company business is not set by an official rate; each employer chooses its own per-kilometer value.
- Deductibility rests on Article 107 of the Tax Statute: causality, necessity and proportionality with the income-producing activity.
- Seven sections: scope, definitions, per-kilometer rate, supporting documents, approval tiers, filing deadlines, and control and sanctions regime.
- Set a single per-kilometer rate built from real costs (fuel, maintenance, depreciation, insurance).
- Up to COP 50,000 per trip: direct supervisor.

## Why you need a written policy

In Colombia, mileage reimbursement for personal-vehicle use on company business is not set by an official rate; each employer chooses its own per-kilometer value. The lack of a written policy is the leading cause of DIAN findings and of UGPP reclassifying the payment as salary. A policy that is board-approved, published and enforced turns reimbursement into a deductible expense and shields the employer.[^dian-deducciones]

## Legal framework

Deductibility rests on Article 107 of the Tax Statute: causality, necessity and proportionality with the income-producing activity.[^dian-deducciones] On the labor side, Article 128 of the Labor Code lets payments meant to cover expenses fall outside salary, provided the reimbursement matches a real, documented cost.[^ugpp-naturaleza] The electronic sales invoice is the gold-standard support before DIAN.[^dian-fe]

## Recommended structure

Seven sections: scope, definitions, per-kilometer rate, supporting documents, approval tiers, filing deadlines, and control and sanctions regime. Sign it through the legal representative, date and version-control it, and acknowledge receipt with every employee.

## Per-kilometer rate

Set a single per-kilometer rate built from real costs (fuel, maintenance, depreciation, insurance). Review it annually using the Banco de la República CPI and the gasoline-price variation. Record the calculation in an internal minute; that minute is the first document UGPP will request.[^banrep-ipc]

## Tiered approvals

Up to COP 50,000 per trip: direct supervisor. Between COP 50,001 and 200,000: area manager. Above COP 200,000: finance director. Monthly accumulated reimbursements that exceed 25% of base salary require dual approval to avoid being read as disguised wages.[^ugpp-naturaleza]

## Per-trip documentation

Each claim must include: date, origin and destination, business purpose, kilometers per a verifiable route (Google Maps or GPS), client name, electronic fuel or toll invoice when applicable, and signature. Invoices must carry the company's name and NIT to support VAT credit and deductible cost.[^dian-fe]

## Five-year retention

Article 632 of the Tax Statute requires keeping accounting and tax records for the firmness term of the return, generally five years. Store every claim, approval, payment voucher and invoice in an indexed digital archive with cloud backup.[^dian-deducciones]

## Monthly reconciliation

Each month, accounting reconciles paid reimbursements against received electronic invoices, the bank statement and payroll. Unexplained differences are returned for correction before closing the period. This is the most effective shield against DIAN adjustments.[^dian-fe]

## Preventing UGPP reclassification

Avoid flat monthly stipends without support, always require the trip log, vary the amount with actual kilometers and document the business purpose. Keep review minutes that prove the policy is being enforced.[^ugpp-naturaleza]

## References

## Frequently asked questions

### Is there an official mileage rate in Colombia?[^dian-deducciones]

No. Neither DIAN nor the Ministry of Labor publishes a single rate; each company sets its own per-kilometer value based on real cost and documents it in an internal policy, reviewed annually using objective drivers such as CPI and fuel prices.

### How long must I keep the supporting documents for each reimbursement?

Five years, in line with Article 632 of the Tax Statute and the general firmness term for tax returns. Keep the request, approval, electronic invoice and payment voucher in an indexed digital archive with cloud backup.

### How do I prevent UGPP from reclassifying the reimbursement as salary?

Avoid flat monthly stipends, tie every payment to a log of actual kilometers and business purpose, vary the amount with each trip, require electronic fuel invoices when applicable and keep minutes that show internal control and discipline.

## Sources

- [DIAN — Deducciones y soportes (Estatuto Tributario)](https://www.dian.gov.co/impuestos/personas/Paginas/default.aspx) — Dirección de Impuestos y Aduanas Nacionales (DIAN) (2026-04-28)
- [UGPP — Determinación de la naturaleza salarial de pagos a trabajadores](https://www.ugpp.gov.co/parafiscales) — Unidad de Gestión Pensional y Parafiscales (UGPP) (2026-04-28)
- [DIAN — Factura Electrónica de Venta](https://www.dian.gov.co/impuestos/factura-electronica/Paginas/default.aspx) — Dirección de Impuestos y Aduanas Nacionales (DIAN) (2026-04-28)
- [Banco de la República — Índice de Precios al Consumidor (IPC)](https://www.banrep.gov.co/es/estadisticas/indice-precios-consumidor-ipc) — Banco de la República (2026-04-28)