In an increasingly complex global environment, businesses face the challenge of fulfilling their tax obligations without compromising their competitiveness. In Latin America, tax compliance is a key strategic factor for preserving and fostering business growth.

The General Directorate of Revenues (DGI) of Nicaragua has initiated the declaration and payment period for the Income Tax (IR) corresponding to the 2024 fiscal year. Additionally, it has provided a series of essential guidelines that businesses must follow, including the following:

• Inventories and Taxable Income: It is essential that reported inventories accurately reflect the nature and reality of the business.
• Transactions in the Agricultural Exchange: Transactions exceeding C$40 million must be registered as taxable income.
• Tax Treatment for Cooperatives: Cooperatives exceeding C$60 million must settle the IR proportionally to their costs and expenses.
• Assets and Depreciation: Tax revaluations of assets are not permitted, and only depreciation derived from the original acquisition of the asset will be deductible.
• Documentation of Assets and Withholdings: It is crucial to support asset acquisitions with invoices or contracts, and only withholdings that have been correctly declared and paid during the fiscal year will be accepted as deductible.

In an increasingly competitive global market, tax compliance enhances the reputation and competitiveness of businesses. Proper tax planning and strict adherence to local regulations are essential to ensure financial stability and facilitate expansion into new markets.

At Dentons, we understand that each business is unique and requires a personalized tax approach to meet its specific needs. We offer the following solutions to ensure efficient and seamless tax compliance:

• Optimization of the tax structure to support sustainable growth.
• Mitigation of tax risks through rigorous regulatory compliance.
• Efficient tax management aligned with business objectives.
• Maximization of tax opportunities to obtain more competitive and efficient financing.

At Dentons, we support our clients in successfully navigating an ever-changing environment, protecting their businesses, and promoting their sustainable growth.