TODAY NICARAGUA – As part of the reform to the tax concentration law cooperatives are calling for the elimination of the retention of 1% per month on their gross income and for a special tax rule to be created.

The Concertación Tax Act indicates that cooperatives are free to pay income tax if their gross annual incomes are less than or equal to $1.5 million. However, this same law also states that 1% must be retained per month in advance even if the stated income level is not reached.

Ariel Bucardo, president of the National Council of Cooperatives, told Elnuevodiario.com.ni that “… We have come here to raise with the Members of the Economic Commission [the idea that] before approving this reform they thoroughly analyze the problem of cooperatives and we have noted that there should be a special tax regime for this sector. That special regime should eliminate the withholding of 1%, as to do otherwise would mean all cooperatives would be forced to pay, regardless of whether or not their income reaches $1.5 million. ”

Source: elnuevodiario.com.ni