Taxes reforms tax reform Private Enterprise Council (Nicaragua) Nicaragua National Assembly José Adán Aguerri Ley de Equidad Fiscal Agronomy Animal husbandry Income tax Nicaragua's government Value Added Tax (VAT) tax exemption taxes Asociación de Exportadores de Café de Nicaragua

Nicaragua Passes Tax Reform for Rice and Milk

Although a reform reduces income tax (IR) from 1.5% to 1% for transactions of rice and raw milk in the bag, unsatisfied businesses are demanding that more areas be included.

Thursday, February 9, 2012

The reform of the Fiscal Equity Act was passed on Wednesday (8th February, 2012) in the National Assembly by 85 votes, the majority of which were from the group of the ruling Sandinista Front (FSLN), and the opposition.

The reform reduced from 1.5 to 1 percent income tax (IR) for transactions of rice and raw milk in the bag in excess of 60 million Cordobas ($2.6 million) a year . If these are greater than the annual IR, deductions will be considered final. In addition, the Selective Consumption Tax (ISC) for milk-based drinks has been eliminated.

"The news was welcomed by some and rejected by others," wrote El Nuevo Diario on its website.

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Nicaragua National Assembly Private Enterprise Council (Nicaragua) José Adán Aguerri

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Ley de Equidad Fiscal tax reform tax reform reforms Income tax Taxes Animal husbandry Agronomy

Nicaragua: Businesses Need More Fiscal Reform

February 2012

Business leaders see the government’s tax reform bill as insufficient and analysts suggest including more sectors in order to stimulate economic activity.

The Superior Council of Private Enterprise (COSEP) has stated that the tax reform bill that the government has sent to the National Assembly, was not consulted on with the private sector and they consider it "inadequate", reports El Nuevo Diario on its website.

Special Tax Deal for Rice and Milk Drinks

January 2012

With an amendment to the Fiscal Equity Act, the government of Nicaragua has eliminated the tax on milk-based drinks, and limited to 2% tax on rice.

The draft amendment to the Fiscal Equity Law, said the executive, aims to prevent a price rise of milk-based drinks and basic rice in this country and stimulate production.

Nicaragua: Tax Law Hurrying Businessmen

January 2010

Most companies are unprepared to apply the changes required by the new Tax Law.

This was confirmed by spokespersons from the private sector, who added they could spend months learning the new regulations, incurring in additional costs.

"Businessmen complain that not even the Tax Authority (DGI), is ready to comply with the changes", reported Laprensa.com.ni.

Nicaragua: Tax Reform Targets $46 Additional Million

December 2009

The Executive presented the tax reform bill to the Assembly, which aims to collect $46 million more, or 0.7% of the GDP.

42% of the projected collection depends on the Minimum Payment Tax (IPM in Spanish).

Legislator Eduardo Montealegre spoke about how this tax will impact businesses, "1% IPM over sales is equivalent to 75% of their earnings before taxes.