NICARAGUA NEWS — With the reform of the Tax Coalition Act only international cooperation funds for projects agreed by the Executive will be exempt from taxation.
The project to amend the Law on Tax Coalition seeks to eliminate tax exemptions enjoyed by international cooperation funds, leaving tax exemptions in place only for “… those who are registered with the Government.”
Laprensa.com.ni reports that “… the economist Adolfo Acevedo believes that with this measure the Government will seek greater control over international cooperation, which would affect donations, for example, to individuals.”
He added that “… If the reform is approved as set out in the proposal, taxes will be incurred, for example, on the donations received by various churches from abroad, or cooperatives, as well as funding channeled through NGOs who receive funds from private sources abroad, and all kinds of programs and projects, including scholarships, which are not run under a prior agreement or arrangement of the donor with the government. ”