Nicaragua: Tax Increase for Non-resident Investors

With the reform to the law on Tax Concentration non-resident investors in the country will have to pay 15% instead of 10% on income earned from capital.

Friday, December 12, 2014

According to Juan Sebastian Chamorro, executive director of the Nicaraguan Foundation for Economic and Social Development, the new reform "... is a positive thing for the country because it will generate an increase in the collection of such taxes but is a negative blow to natural and legal non residents because the Revenue Department will no longer deduct 10% on capital transfers, but rather 15 %. "

José Adán Aguerri, president of the Superior Council of Private Enterprise, told Elnuevodiario.com.ni that "... These are technical situations, the government is seeking a balance, the idea is that taxes wont be left out altogether but that (non-resident) also pay taxes here. It does not represent a higher tax burden for investors. "

"... The tax burden carried by domestic firms is higher than the tax burden for companies operating outside of Nicaragua, that's one of the issues we are trying to balance out. "



More on this topic

More Taxes in Times of Crisis

February 2019

In the midst of Nicaragua's political and economic crisis, the National Assembly approved a tax reform that increases the income tax of large taxpayers from 1% to 3%.

On the morning of February 27th, the reform of the Tax Concentration Law was approved, which also contemplates raising from 1% to 2% the income tax for medium sized companies with higher incomes.

Costa Rica: Changes in Income Tax

March 2015

The reform under public consultation includes tax on remittances sent abroad, on the payment or crediting of interest, commissions and other financial expenses by natural or legal persons domiciled in Costa Rica.

From the order by the Ministry of Finance published in La Gaceta:

Regulations on Tax Law Repealed in Nicaragua

February 2014

The Government has abolished the regulations of the Tax Coalition Law which created new taxes and fiscal measures.

Jose Adam Aguerri, head of the Superior Council of Private Enterprise announced that the regulations on the Tax Coalition Law will be canceled by the Government of the country.

Reforms to Tax Law in Nicaragua

January 2014

Topics related to tax increases and the fiscal industry are to be addressed in the revision of the law.

In mid-2014, the process will start for a new amendment to the Law on Tax Coalition. Everything related to aspects of tax industry will be reviewed, the issue of bonuses and more technical issues "that are part of the process that must be continuously developed," said José Adán Aguerri, president of the Superior Council of Private Enterprise (Cosep).

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