Nicaragua

Corporate - Significant developments

Last reviewed - 07 July 2020

On 27 February 2019, the Nicaraguan government enacted Law 987, a tax reform of Law 822, Tax Agreement Law; such reform was published into the official government newspaper on 28 February 2019. This reform brought an important change related to corporate income tax (CIT) determination and modified the withholding tax (WHT) rates for payments of capital incomes and capital gains, as well as to territories deemed as tax havens. It derogated value-added tax (VAT) exemptions on some goods and modified dates of filing and payment of tax returns.

On 11 March 2019, the Nicaraguan government enacted Decree 08-2019, a tax reform of Decree 01-2013 - Regulation of Law 822, Tax Agreement Law; such reform was published into the official government newspaper on 15 March 2019. The purpose of this reform was mostly to regulate the changes incorporated in law 987.