Nicaragua

Individual - Other taxes

Last reviewed - 08 December 2019

Social security contributions

Social security contributions exist at 7.00% for employees and 21.50% for employers with 50 or less employees and 22.50% if greater than 50 employees, and are determined on the gross salaries and wages.

Consumption taxes

Value-added tax (VAT)

VAT is imposed at a 15% rate on the sale of goods, rendering of services, grant of use of assets, and import of goods. Export of goods and services are subject to a 0% rate.

VAT exemptions are available for certain items, including medicine, real estate transfer, sale of used goods, basic food products, credit instruments, tuition, and textbooks and educational supplies.

See the Other taxes section in the Corporate tax summary for more information.

Selective consumption tax

A selective consumption tax is applied to goods that are considered to be non-essential.

See the Other taxes section in the Corporate tax summary for more information.

Net wealth/worth taxes

There are no net wealth/worth taxes in Nicaragua.