The Tax Concertation Law 822 mainly aims to modernize and improve tax administration, simplify payment and regulate exemptions to reduce tax evasion and broaden the tax base.

Here is a list of the main taxes charged in the country:

  1. Income Tax (IR): Nicaragua's income tax rate for income from economic activities is 30 percent.
  2. Value Added Tax (IVA): The Value Added Tax (IVA, by its Spanish acronym) is 15 percent of the value of a product or an activity. Article 111 of the Tax Concertation Law establishes a series of activities, which are exempt from the IVA.
  3. Selective Consumption Tax (ISC): Some products subject to ISC include alcoholic beverages, beer, cigars, cigarettes, sodas, and sparkling water.
  4. Stamp Tax: This tax applies to certain documents listed in article 240 of the Tax Concertation Law when they are issued in Nicaragua, or when issued in foreign countries, but take effect in Nicaragua.
  5. Real Estate Tax (IBI): The Real Estate Tax is applied to properties located within the boundaries of each municipality. Land, stable or permanent plantations and the fixed and permanent constructions or installations on them as defined in articles 599 and 600 of the Civil Code, are considered real estate.
  6. Municipal Tax on Incomes (DAI): Customs duties on import taxes are contained in the Central American Import Tariff and apply to the CIF value of goods imported from outside Central America.