Taxes for Companies in Nicaragua (2026): Rates, VAT and Deadlines

This guide summarises the main taxes for companies in Nicaragua in 2026, using the figures published by the tax authority. Rates change by law or decree, so check with an adviser before you file.

Corporate income tax

Companies pay income tax (IR) at 30% of net income when annual gross income exceeds C$12 million; smaller taxpayers use the progressive table of the Tax Concertation Law. Annual IR is compared with the definitive minimum payment (pago mínimo definitivo) on gross income, and the higher amount is paid: 1% for most companies, 2% for principal taxpayers (PRICOS) and 3% for large taxpayers (GRACOS), under Law 987 of 2019.

VAT and indirect taxes

VAT (IVA) is 15%.

Dividends and withholding tax

Dividends are capital income taxed at 15% for residents and non-residents (Law 987, which amended article 87 of the Tax Concertation Law), withheld when the dividend is paid. Payments to tax havens are taxed at 30%.

Payroll taxes

Employers pay social security contributions every month on top of gross salary. Employee income tax is withheld through payroll and paid to the tax authority monthly. If you hire before you have an entity, an employer of record handles payroll for you.

Filing calendar

Monthly VAT, withholding and minimum-payment returns, and an annual IR return with the DGI.

Tax ID

RUC (Registro Único de Contribuyentes), issued by the Dirección General de Ingresos (DGI). You need it to invoice, open a bank account and register employees.

Get help from Easyco

Ready to set up your own company in Nicaragua? Easyco supports you through the setup and then with tax and accounting: bookkeeping, monthly returns, annual filings and payroll. Contact us for a quote.