The National Assembly recently approved a package of tax reforms aimed at strengthening the country’s competitiveness, modernizing the tax and customs system, and aligning national regulations with international foreign trade standards.
These reforms directly affect the benefits and incentives of the Free Trade Zone Regime. The Tax Coordination Law modifies the application of the Selective Consumption Tax (ISC) by introducing a new list of rates for the tariff headings applicable to various products, and the Self-Clearance Law new import and export procedures are standardized, preventing the importation of goods linked to forced labor, thereby strengthening supply chain traceability and the country’s commercial reputation.
I- Law No. 1278, which amends and supplements Law No. 917
Law No. 1278, which amended Law No. 917, the Export Free Trade Zone Law, enhances the attractiveness of the Free Trade Zone regime. Its objective is to strengthen the framework of tax incentives to attract domestic and foreign investment, ensure legal stability, and encourage companies to remain within this regime.
- Expansion and Extension of Tax Benefits
A- Operating Companies:
- 100% exemption from Income Tax (IR) and Dividend Tax for 15 years, starting from the commencement of operations.
- Possibility of successive extensions for equal periods, subject to authorization by the National Free Trade Zone Commission.
2- User Companies:
- 100% exemption from IR and dividend tax for the first 10 years.
- Starting in the 11th year, a 60% exemption.
- The possibility of successive extensions is also included.
- Scope of the Exemption
- It is confirmed that the exemptions do not apply to wages or personal income.
- Payments to non-resident foreigners for interest, fees, commissions, and professional services related to the operation remain exempt.
- Indefinite validity of other benefits
a) Article 20 bis is introduced, establishing that the tax benefits of the regime are indefinite in nature, except for income tax and dividend tax.
b) Once the term and its extensions have expired:
- Operators will pay 100% of income tax.
- Users will pay 40% of the IR until operations cease.
- Institutional strengthening
- The powers of the National Free Trade Zone Commission to approve facilities and extensions of benefits are reinforced.
II- Law No. 1279 amending and repealing Law No. 822,
Law No. 1279, which amended Law No. 822, modernizes the structure of the ISC and improves its enforcement; therefore, the reforms aim to update the structure of the Selective Consumption Tax (ISC), improve tax collection, correct distortions in the tax base, and clarify rules for tax credits. This strengthens tax control and adjustments that may affect consumer prices and production chains
- The ISC tax base is modified as follows:
a) For alcoholic beverages, beer, soft drinks, energy drinks, and similar products: The tax base becomes the price to the distributor, for both domestic sales and imports.
b) For alcoholic beverages, a distinction is made between:
- Ad valorem: price to the distributor.
- Specific tax: liter of pure alcohol.
- Recognition of tax credits
a) ISC paid may be credited against:
- Raw materials.
- Inputs.
- Taxed imported finished goods.
b) In exempt transactions, the ISC is recognized as a cost or expense deductible from income tax.
- Modification of tax rates
a) ISC rates are revised for the tariff headings of various agri-food products and specific goods detailed in Annex I (e.g., fruits, nuts, meats, processed products).
b) In practice, many of these products now face a lower tax burden, which promotes their commercialization. - Regulatory repeal: Paragraph 3 of Article 130 is repealed, which referred to the application of the tax base whereby imports or domestic entries of goods whose tax base was the retail price were excluded. This repeal eliminates provisions that were inconsistent with the new tax scheme,
III. Law No. 1280 Amending Law No. 265
Law No. 1280, which amended Law No. 265 (the Self-Clearance Law for Import, Export, and Other Regimes), introduces responsible trade criteria and labor rights into the customs system. Its objective is to prevent the importation of goods linked to forced labor, thereby strengthening supply chain traceability and the country’s commercial reputation.
It added a new provision, Article 16 bis, which requires foreign trade operators to submit a written declaration stating that the goods have not been manufactured or produced, either wholly or partially, through forced labor when clearing or importing goods.
Furthermore, the General Directorate of Customs Services (DGA) is empowered to:
- Request additional information when there are alerts or reasonable doubts regarding whether the supply chain of the goods subject to import or admission originates from forced labor.
- In the event of a presumption of falsification, it may coordinate investigations with the National Police and the Attorney General’s Office to impose the corresponding administrative sanctions.
The MIFIC and the DGA are authorized to issue general administrative provisions to implement this regulation. This underscores the importance of aligning with international standards for ethical trade, mitigating commercial risks, and strengthening customs control.
Link to access La Gaceta´s news: https://www.lagaceta.gob.ni/la-gaceta-no-61-jueves-09-de-abril-de-2026/