Recently, the Tax Administration has issued two notices, one of them was to invite taxpayers to check if they are in compliance with the data update required by law. Subsequently, we have identified that the Tax Administration issued a clarification on this first notice and explained that it is not necessary to go to your Tax Administration to carry out these procedures if you have no changes to report on the board of directors, shareholder composition, legal representative, etcetera.
With respect to the change of legal representatives, in the provision issued under the name “Board No. 1 – IR 2022 – Update of data” and the notice called “Clarification of Board No. 1″, it was established that, in the case of the change of legal representatives, in the case of the change of the legal representative, it was established that, in the case of the change of the legal representative, it is necessary to report the change of the legal representative. 1”, it was established that, by virtue of the provisions of Article 103 of the Tax Code of the Republic of Nicaragua, all registered taxpayers have the obligation to update the information provided to the General Directorate of Revenue (DGI), including the changes of legal representative that they have suffered; for such purpose, they must provide all the necessary documents to make such update of their representative effective, such as: the revocation of the power of the previous Legal Representative and the presentation of the registered power of the new representative, in case it is necessary.
In view of the above, we clarify to our clients that such notices do not apply to everyone in general, only to those who have pending changes to report, and it is not a requirement for the filing of the annual income tax return 2022, since compliance with this notice is not a prerequisite. However, it is appropriate to review the compliance with these formal obligations, since, it is an obligation that every taxpayer has to comply with in due time and form as established in the current tax legislation; in this case, every two years or every time a relevant modification is made in the taxpayer’s information.