Tax Credits: Deadlines for Transfers Change

With the approval of the tax reform, in Nicaragua the period for exporting companies to transfer the tax credit to the producer or manufacturer was reduced from three to two months.

Thursday, April 4, 2019

At the end of February, the National Assembly approved the amendment to the Tax Concertation Law, which increases from 1% to 3% the income tax of large taxpayers and also shortens the deadline for exporters to transfer the tax credit to producers, which is 1.5% on the value of FOB exports.

See "More Taxes in Times of Crisis"

The change is not well received by the business sector, because according to Guillermo Jacoby, president of the Association of Producers and Exporters of Nicaragua (APEN), this change "... brings greater illiquidity to the sector."

In statements given to Laprensa.com.ni, Jacoby argued that "... The exporter is paying more INSS, is paying more for inputs and fertilizers, and those raise your costs, in addition that there is no financing, all that takes away liquidity and if you add this reduction of the term, the pressure is greater, taking one month off the exporter means increasing the shortage of money."

The article reviews that "... Based on article 180 of the regulations to the reform of the Tax Concertation Law, Erwin Rodriguez, senior manager of Taxes and Legal of PwC Nicaragua, explained that 'if not transferred, the exporter will not be entitled to the tax credit and if the exporter already credited it in their declarations, must return it to the General Revenue Directorate (DGI)'."

Do you need more information about your business sector?

Request more information:








this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Exports Rebound, But Pessimism Continues

October 2019

Although between January and September 2019, Nicaraguan exports grew 2% compared to the same period in 2018, businessmen say it is because of an atypical behavior of gold and fish sales, not a general improvement.

According to figures from the Center for Export Procedures (Cetrex), between January and September 2018 and the same period in 2019, sales of companies in Nicaragua abroad went from $2.075 million to $2.108 million.

Nicaragua Loses Trade Partners

June 2019

During the first five months of the year, exports totaled $1.145 million, 10% less than in the same period in 2018, and export destinations also declined in the period concerned.

According to data from the Centro de Trámites de Exportaciones (Cetrex), between January and May 2018 and the same period in 2019, foreign sales decreased by $134 million, going from $1.279 million to $1.145 million.

Reversal in Air Freight Collection

June 2019

In Nicaragua, authorities reported a decision to suspend collection of the additional fee of $0.05 for each kilogram exported or imported by air.

The extra charge came into effect last April 25, but from the beginning the private sector spoke out against it, because it was argued that the tariff that the Nicaraguan government would apply, would put some local companies on the border of closure and cause a decrease of about $50 million annually.

Gloomy Prospects for Exports

June 2018

Nicaraguan business leaders estimate that in the months of June and July there will be drastic drops in exports.

In the first five months of the year, the country sold $1.282 billion worth of goods abroad, which is 2% more than what was reported in the same period in 2017. However, the business sector says that this increase was due to the fact that many exporters decided to liquidate most of their inventory at the beginning of the crisis. 

 close (x)

Receive more news about Exports & imports

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Looking for Importers and distributors of furniture

Mexican manufacturer of office furniture seeks importers and distributors interested in dealing their products in Central America.
PM Steele is a 100% Mexican company, with more than 67...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Feb 21)
Brent Crude Oil
57.820
Coffee "C"
110.35
Gold
1,642
Silver
18.455