tax Law

TAX LAW NICARAGUA

As of my last update in January 2022, Nicaragua’s tax laws are subject to change, so it’s important to consult with a local tax expert or legal advisor for the most current information. However, I can provide you with a general overview of the tax system in Nicaragua as it stood at that time:

• Corporate Income Tax: Nicaraguan resident companies are companies are taxed only on their Nicaraguan source income. The standard corporate income tax rate is 30%.
  
  

• Personal Income Tax: Individuals in Nicaragua are depending on income levels, with higher earners subject to higher rates. Deductions and exemptions may apply.
  
  

• Value Added Tax (VAT): Nicaragua imposes a value-added tax on the supply of most goods and services. The standard VAT rate is 15%.
  
  

• Withholding Taxes: Nicaragua has various withholding tax obligations, including on dividends, interest, royalties, and payments for technical services. The rates for withholding taxes can vary depending on the nature of the payment and the residency status of the recipient.
  
  

• Property Tax: Nicaragua imposes property taxes on real estate holdings. The tax rate varies depending on the location and value of the property.
  
  

• Customs Duties: Import duties apply to certain goods brought into Nicaragua. The rates can vary depending on the type of goods and applicable trade agreements.
  
  

• Excise Taxes: Excise taxes may apply to specific goods such as alcohol, tobacco, and gasoline.
  
  

• Tax Administration: The Directorate General of Revenue (DGI) is responsible for tax administration and enforcement in Nicaragua.
  
  

It’s important to note that tax laws and regulations can change, so it’s essential to verify any information with local authorities or tax professionals. Additionally, specific industries or activities may be subject to additional taxes or regulations not covered here.