Nicaragua

Employment deductions

An employee's social security contribution (7.00%) is considered as a deductible expense for income tax purposes.

Personal deductions

25% of the gross labour income related to education, health, and professional services expenses is deductible, up the amount of NIO 20,000. These deductions require the authorisation of the tax authorities.

Business deductions

Personal business-related expenses are deductible if properly documented and accounted for and if accepted by the fiscal authorities as proportional to income originated by the business activities. Total business expenses can be determined ex officio by the fiscal authorities as a percentage of gross income.