- Nicaragua’s 2020 tax reform increased government revenue by imposing heavier taxes on businesses and workers, such as advance income tax payments and fewer exemptions. Recently, the Ortega-Murillo regime announced a temporary VAT exemption for small businesses during national holidays, which experts see as a short-term relief rather than a substantive fiscal policy. Economists argue that the regime’s fiscal surplus is due to excessive tax collection rather than economic growth, and they call for broader reforms to reduce the tax burden on the population. The 2020 reforms have been criticized for their impact on consumers and the productive sector, with measures like increased income tax prepayments and higher wage withholding rates.
Source: divergentes.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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