Art. 237 of Law No. 822, the “Tax Concertation Law” (LCT), establishes the Stamp Tax, also known as “ITF.” This indirect tax applies to the consumption of certain legal acts outlined in art. 240 of the law, each with its applicable rate.
According to art. 239 of the LCT, stamp taxes must have designations and other characteristics defined by the Ministry of Finance and Public Credit of the Republic of Nicaragua (MHCP), to be established through ministerial agreement.
On December 18, 2023, the Ministry of Finance and Public Credit of the Republic of Nicaragua published Ministerial Agreement No. 011-2023, determining new rates, designations, and characteristics of stamp taxes. The changes in stamp tax outlined in this agreement came into effect on January 1, 2024, and will be applicable until December 31 of the same year.
The update to the Stamp Tax rate follows the provisions of art. 240 of Law No. 987, “Law of Reforms and Additions to Law No. 822, Tax Concertation Law,” which establishes:
“The ITF rate will be updated annually from January 1, 2020, based on the higher of the annual devaluation of the official exchange rate of the córdoba against the United States dollar and the annual inflation rate of the Consumer Price Index (CPI) published by the Central Bank of Nicaragua (BCN), observed in the last twelve available months.
The update of the ITF rate will be calculated and published by the Ministry of Finance and Public Credit, through ministerial agreement, during the first twenty days of the month of December of the previous year to its entry into force.”
To review the details of the new Stamp Tax rates applicable to various legal acts outlined in current legislation, as well as their new designations, refer to the update table in Agreement No. 011-2023, which can be found here.