This article provides a clear and practical overview of the corporate tax regime in Nicaragua for the 2025 fiscal year. It details the main corporate tax rate, assessment basis, currency, and the structure of minimum tax requirements relevant to businesses operating in Nicaragua.
Corporate Tax Rate and Assessment Basis in Nicaragua (2025)
Nicaragua applies a flat corporate income tax rate to resident companies and foreign entities with Nicaraguan-source income. The primary assessment basis for corporate taxation is the company’s overall corporate income.
| Assessment Basis | Tax Type | Flat Rate (%) | Currency (NIO) |
|---|---|---|---|
| Corporate income | Flat | 30% | C$ (NIO) |
This means all taxable corporate income is subject to the 30% flat rate for 2025, with no progressive brackets. The assessment and payment are conducted in the Nicaraguan córdoba (NIO). Using a recent conversion rate of 1 USD ≈ 36.8 NIO, the flat rate is functionally applied regardless of earnings size or business sector.
Minimum Tax Surtaxes (2025)
The Nicaraguan corporate tax regime introduces specific minimum tax rules, particularly relevant for corporations reporting low net taxable income relative to gross income. The system incorporates several minimum tax thresholds, depending on the taxpayer’s classification and income structure.
| Surtax Rate (%) | Condition | Currency (NIO) |
|---|---|---|
| 1% | If 30% of net taxable income is less than 1% of gross income, a minimum tax of 1% of gross income applies | C$ (NIO) |
| 2% | If 30% of net taxable income is less than 2% of gross income, a minimum tax of 2% of gross income applies (depending on taxpayer classification) | C$ (NIO) |
| 3% | If 30% of net taxable income is less than 3% of gross income, a minimum tax of 3% of gross income applies (depending on taxpayer classification) | C$ (NIO) |
This structure means companies may face a minimum effective tax, even if deductions or business losses result in a very low net taxable profit. The determination of which minimum applies depends on how a taxpayer is classified under Nicaraguan law.
Key Compliance Points and Missing Data
There is no public data regarding progressive brackets, nor are there specified minimum or maximum holding periods for corporate taxation purposes as of 2025. All companies should assume the flat rate and surtax structure applies unless notified otherwise by official sources.
Pro Tips for Navigating Corporate Tax in Nicaragua
- Assess your minimum tax exposure carefully if your business has low profit margins, as the minimum tax based on gross income could exceed the standard corporate tax amount.
- Keep thorough and precise records of both gross and net income to verify which minimum tax level applies to your company under Nicaraguan law.
- Consult with a local tax expert annually to ensure your company’s taxpayer classification is accurate and that all relevant minimum tax rules are followed.
- Plan for tax payments in córdoba (NIO) and monitor exchange rates for accurate USD comparisons when budgeting for international business operations.
- Refer directly to official government sources for any regulatory updates. The principal site for Nicaraguan fiscal matters is the Ministry of Finance of Nicaragua.
Additional Resources
For further information or legislative updates, visit the official homepage of the Ministry of Finance of Nicaragua. This site provides access to tax codes, regimes, and all recent fiscal announcements.
In summary, Nicaragua’s corporate tax is straightforward at a 30% flat rate, but the minimum tax rules based on gross income are essential to understand and plan for—especially in low-margin industries. Companies benefit by tracking classification status and income types and by regularly consulting national tax authority sources for the most current guidance.