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NC: Grace period for the payment of capital gain tax for the transfer of assets subject to registry

May, 2019

Pursuant to Law 987 Law of Amendments and Additions to Law 822, "Nicaraguan Tax Law" (hereinafter "Law 987"), the tax rate for the transfer of assets subject to registry assets was increased. Notwithstanding the foregoing, the sixth Article of the Ordinal II "Transitional Provisions" of this Law establishes that for the assets that were acquired through a Public Deed and have started their registry procedure during the first three months since the Law 987 came into force, the applicable tax rate will be the one prior to the amendment (which varies according to the value of the asset), as detailed below:


The Tax Authority ("DGI" in Spanish), has notified through Resolution "AVISO/-073-/05-2019" that, the grace period to payout in accordance with the previous tax rate expires on May 31st, 2019, the fee of appraisal for the assets acquired. Consequently, effective June 1st, 2019, for those transfer of assets subject to the registry in a public office that has been executed prior the entry into force of Law 987 whose registry is still pending, the applicable tax rate will be the one established by Law 987, which is described as follows:

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