Nicaragua: Fiscal Solvency Requirement Affecting Competitiveness

In order to speed up timeframes and procedures, employers have asked that the requirement be eliminated or that the the timeframe, currently one month, be extended to at least one year.

Wednesday, June 1, 2016

In Central America, only authorities in Nicaragua are demanding compliance with fiscal solvency, which directly affects the competitiveness of local exporters against the rest of the region. In order to speed up the times and procedures, employers are asking for the requirement to be eliminated or that the timeframe, currently one month, be extended to at least one year.

"... 'The government is always trying to find a way to use procedures which include fiscal solvency requirements, to ensure that the taxpayer is up to date or solvent with taxes' said Juan Sebastián Chamorro, executive director of Funides. 'The problem with this is that no one else in Central America asks for this (as a requirement) and it turns it into an issue of competitiveness'. "

In this regard, Rosendo Mayorga, president of the Chamber of Commerce and Services of Nicaragua told that "...'I would suggest that fiscal solvency is not a straitjacket and I definitely agree that it be issued for a longer timeframe and that any discrepancy be resolved in that time in order not to hinder trade'. "

For his part, Francisco Javier Martínez, customs broker and president of the Chamber of Customs Brokers and warehouses in Nicaragua (Cadaen), said that 'the DGI should not ask for fiscal solvency at border crossings. 'The DGI in some cases is used to asking for fiscal solvency at customs offices (or border crossings), which is one more reason for delays in imports and exports'."

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