Prior to the enforcement of Law No. 987, Law of amendments and additions to Law N° 822 Nicaraguan Tax Law (hereinafter “Amendments to the Tax Law”) the taxpayers (individuals or legal entities) that were incorporated under the ordinary fiscal regime were required to submit the annual tax declaration of Income Tax and its payment within three months following the end of the fiscal period, all pursuant to Article number 69 item 1of the Tax Law.
With the entry into force of the Amendments to the Tax Law, the taxpayers that are incorporated under the ordinary fiscal regime must submit the annual tax declaration of Income Tax and process its payment by the last calendar day of the second month following the end of the fiscal period. For the submission and payment for the ordinary fiscal period for 2019 (from January 1 to December 31 of the same year), the taxpayers must submit the declaration and cancel the respective tax on or before February 29, 2020.
It is important to mention that Taxpayers have the responsibility of submitting their annual tax declaration of the Income Tax through the Electronic Tax System (“VET” due to its acronym in Spanish), even when such taxpayers are exempted of such tax, in accordance to Article number 69, item 1 of the Tax Law. Any failure to sumbit the tax declaration and payment of this Tax may constitute administrative and economic penalties imposed by the Tax Authority, including charges for currency exchange value and default interest over the amount of the unpaid tax fee.
Should you have any questions or would like more information on the subject, please do not hesitate to contact us.
Jeynner Gutiérrez Hernández