NICARAGUA NEWS – The draft law on Tax Coalition will extend exemptions until to March 2015 and maintain tax free income for international cooperation given to nonprofit organizations.
Some of the goods included in the list of exemptions are books, magazines, school supplies, medicines, vaccines, agricultural goods, rice (except packaged rice or packages equal to or less than fifty pounds and higher quality presentation than 80/20), sugar cane (except for special sugars), vegetable cooking oil, corn, and coffee grounds, among others.
Elnuevodiario.com.ni reports that “… The reform bill indicates that the exemption is for the payment of Value Added Tax, VAT; Selective Consumption Tax, ISC; and Tariff Law, on local purchases and imports of raw materials, intermediate goods, capital goods, spare parts and accessories for machinery and equipment. ”
In the case of international cooperation, “… The draft amendment to the law also maintains the exemption from income tax, IR, for cooperatives or those with revenue less than C$40 million, and if these entities receive incomes higher than this sum they must pay tax on the excess of the C$40 million. ”