This article explains the tax laws in Nicaragua, this article will educate you on the tax laws for a Sociedad Anónima (S.A.) which is the most common company type in Nicaragua.
The country has a tax on foreign earned income earned outside the borders differently then it it was derived locally. Theestablished rate for offshore income, from our research, but seek professional advice, is 0%. NI does not have known exemptions to transfer in income earned abroad accrured abroad. Taxes are lower than average in Nicaragua as the is 30%. This ranks Nicaragua as 134th overall with regards to corp. taxation rate internationally. . .
The valued added tax rate in Nicaragua is 15.00%, that ranks Nicaragua as 134th when compared to value added tax rate worldwide. In terms of other taxation, an employer will contribute 1,600.00% to the equivalent of a social security fund and an employee will contribute 6.25%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 76hours. Contributing to this is the number of yearly labor tax payments, which is 2 in NI.
Thin cap standards aren't in effect. Thin capitalisation refers to any type of restrictions on a business and the debt-to-asset ratios. A dividend is a distribution of a portion of an earnings of the business, established by the board, to shareholders.Dividends can be either cash payments, shares of stock, or other property. The capital gains taxation rate in NIis 0%. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.
The interest witholding rate is estimated at 10%Which means that the taxman expects legal entities to pay tax on at least 10% of payments offshore for on interest payments. The dividends witholding rate is 10%This should be interpreted usually that the tax authorities expects legal entities to automatically withhold 10% of money remitted abroad on dividend payments. The royalties witholding rate 21% This means that the taxman expects legal entities to withold 21% of payments abroad for royalty payments.
There is no known tax on wealth in Nicaragua. There are inheritance taxes in NI placed on an estate. There are no widely used research and development tax incentives in this country.
The above is not tax or legal advice for your particular circumstances. We are able to to refer you to an expert in Nicaragua who will consult with you. Click the free consultation button above.
It takes approximately 67 hours to file and prepare documents for a Nicaragua Civil Law.
The corporate tax is approximately 30% which is 134 in the world.
Owners of a company in Nicaragua are not allowed to carry back a loss and may be allowed to carry forward a loss for 3 years.
The vat rate in Nicaragua is 15% which ranks 78 in the world.
Thin capitalization rules are not in effect.
A corporate director is permitted, meaning this country is a good option if you are setting up a structure where you want to protect director liability.
The directors are not disclosed in the public registry of Nicaragua, MIFIC. Shareholders are not disclosed in the MIFIC.
Typically companies take 30 days to setup and there are 1 director(s) required and 2 shareholder(s) required at the time of incorporation.
Overall we think Nicaragua is a ok option and have given it a score of 34 as an IO score, using the Incorporations.IO proprietary formula.
We can help you form a company in Nicaragua. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Nicaragua, which is required by law.
We can help you with your incorporations needs for an initial payment of just $1000.
Easy Step by Step Process:
The standard process typically takes between two (2) to three (3) weeks depending on when we receive all the required information from you. Once we receive your information, we will email you a complete set of documents for your review within 3 working days upon confirmation of payment. After executing the documents, you will need to mail them to us and we will formally submit your application for filing with the Registry. The Registry will then take about 3-8 working days to process the incorporation and produce certificates necessary for opening your bank account.
Applying for Your Bank Accounts:
Incorporations.IO maintains close working relationship within our extensive network of partner banks to help you apply for and receive banking services that are most appropriate to your specific situation. From the time of verification of incorporation it can take (1) one week to (2) two weeks to apply for and receive a bank account. We work primarily with banks that allow for remotely opened accounts to ensure you are ready to do business as soon as possible.
Applying for Payment Processing:
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we have partners that can assist you and are happy to help you with introductions that can empower your business.
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We can get started for you whenever you are ready via a US$1000 initial payment via credit card. I get notified whenever a payment is made here and would send out the welcome letter and initial forms we would need within 12 hours. If you prefer, we can also process via a phone or Skype call.