Nicaragua Income Tax Reminder for 2021

The Tax Agreement Law requires all taxpayers registered under the general regime to declare and pay an annual Income Tax on Business Activities. Payable tax is the higher of:

1. 30% over taxable net income of the year 2021; or
2. Minimum Definite Payment of 1%, 2%, or 3%, as applicable, over the taxable gross income of the year 2021.

February 28, 2022 is the last day to declare and pay the 2021 annual Income Tax. Delays in the filing of the tax statement and/or tax payment are subject to fines for late filing or late payment as stated in the Tax Code.