Nicaragua

Individual - Deductions

Last reviewed - 07 July 2020

Employment deductions

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

The contributions from employees to saving funds and/or pensions, other than social security, are deductible, provided that these funds have the endorsement of the corresponding authority.

Personal deductions

25% of education, health, and professional services are deductible, up the amount of NIO 5,000 for 2014; this limit will be increased in the following three years by the same amount until reaching NIO 20,000 in 2017.

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.