Nicaragua
Corporate Tax Guide
Time of Update: 4/06/2026
Nicaragua's tax system includes several key taxes applicable to businesses and individuals. The Corporate Income Tax (CIT) is set at a rate of 30%, with tax returns and payments due within two months after the fiscal year-end. The Personal Income Tax (PIT) is 30% for residents and 20% for non-residents, with filings and payments due 90 days after year-end. Capital gains are taxed at 15% for both corporations and individuals. The Value-Added Tax (VAT) is levied at a standard rate of 15% on goods and services, with certain exemptions available. Additionally, the Municipal Registration Tax is an annual levy of 2% on businesses based on average income during the last quarter of the previous year. For new businesses, this tax is 1% of the invested capital.
Nicaragua Corporate Income Tax (CIT)
General CIT Rate:
headline rate of 30%
CIT Return Due Date:
within two months following the fiscal year-end
CIT Payment Due Date:
due within two months after the end of the fiscal year
CIT Estimated Payment Due Date:
Monthly advance payments of 1-3% of gross income
Nicaragua Withholding Tax (WHT)
Resident Withholding Tax (Dividend/Interest/Royalty):
15/15/15
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/15/15
Nicaragua Value-Added Tax (VAT)
General VAT Rate:
15
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Nicaragua Capital Gain Tax (CGT)
General Capital Gain Tax Rate:
15%
Nicaragua Effective Tax Rate (ETR)
Composite Effective Average Tax Rate:
26.85%
Composite Effective Marginal Tax Rate:
12.89%
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TKEG Expat ™ (CH) Nicaragua Corporate Tax Guide
1.
Nicaragua Corporate Income Tax (CIT)
In Nicaragua, the Corporate Income Tax (CIT) is applied at a headline rate of 30%. Companies are required to file their CIT returns within two months following the fiscal year-end. Similarly, the final payment of CIT is due within two months after the end of the fiscal year. Additionally, companies must make monthly advance payments towards their CIT obligations to ensure timely compliance with tax requirements.
2.
Nicaragua Personal Income Tax (PIT)
Nicaragua applies a Personal Income Tax (PIT) rate of 30% for residents and 20% for non-residents. The PIT return due date is 90 days after the year-end for both residents and non-residents. The final payment for PIT must also be made within 90 days of the year-end, and taxpayers are required to make monthly estimated payments to meet their annual tax liability.
3.
Nicaragua Capital Gains Tax (CGT)
Capital gains in Nicaragua are subject to a headline tax rate of 15% for both corporate entities and individuals. This tax applies to gains from the sale of assets and other investments. The consistent rate for both corporations and individuals simplifies the process for those with capital gains within the country.
4.
Nicaragua Value-Added Tax (VAT)
The Value-Added Tax (VAT) in Nicaragua is levied on the supply of goods and services, imports, and exports. The standard VAT rate is 15%. Exported goods and services are exempt from VAT, while exemptions also exist for specific items like medicines, educational supplies, and certain basic food products. VAT credits can be claimed on goods and services purchased to generate taxable income, and businesses must file VAT returns monthly. High taxpayers must also submit bi-weekly payments based on their sales or services rendered.
5.
Nicaragua Municipal Registration Tax
Nicaragua imposes a Municipal Registration Tax, which is an annual levy of 2% on the average income earned by businesses during the months of October, November, and December of the previous year. For newly established businesses, the tax is 1% of the invested capital. This tax is collected by each municipality where the taxpayer has an office or establishment and is an essential local tax for businesses operating within Nicaragua.
