Towards a Stronger Industry: The Implications of Reforms in Microfinance in Nicaragua
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Towards a Stronger Industry: The Implications of Reforms in Microfinance in Nicaragua

Since July 11, 2011, Microfinance Institutions (MFIs) have been subject to the regulation of Law No. 769, known as the “Microfinance Promotion and Regulation Law.” However, the regulatory framework underwent a significant change on November 7, 2023, with the enactment of Law No. 1168, which amended the law previously mentioned. These reforms have brought about…

Electronic Submission for Qualifying Foreign Institutions: Income Tax Law, VAT Law, and Tax Code
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Electronic Submission for Qualifying Foreign Institutions: Income Tax Law, VAT Law, and Tax Code

This year, the modification of the Instructions for Qualifying Institutions Domiciled Abroad in the context of the Income Tax Law, Value Added Tax Law, and Tax Code came into effect. This instruction is jointly developed and reviewed by the Central Reserve Bank and the General Directorate of Internal Revenue. What is the purpose of this…

Printing of tax documents from the Tax Electronic Window (VET) in Nicaragua
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Printing of tax documents from the Tax Electronic Window (VET) in Nicaragua

On March 12 of the current year, the General Directorate of Revenue (DGI) issued “NOTICE-059-03-2024” whereby taxpayers under the general regime and fixed quota regime were informed that they can now, through the Tax Electronic Window (VET), print the following tax documents: Unique Taxpayer Registry (RUC) ID. Registration certificate. Definitive registration/modification certificate. In this regard,…

Legal theft of tax credit in VAT in Guatemala
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Legal theft of tax credit in VAT in Guatemala

Continuing with the line of comments already made regarding the reforms undergone by the VAT in Guatemala, which have led to eliminating the right to claim tax credit, we now address the reforms to art. 16. Let’s start with the original article: ARTICLE 16. Inadmissibility of tax credit. The right to tax credit does not…

Digital Disruption of Evidence
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Digital Disruption of Evidence

In early February, the XV International Arbitration Congress CAI Costa Rica 2024 was held. This event brought together key figures in Ibero-American arbitration to discuss the latest developments, experiences, and trends in international arbitration. In 2024, I had the honor of moderating one of the final panels of the event, titled “Digital Disruption and Integrity…

Fintech Laws in El Salvador
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Fintech Laws in El Salvador

Although the Fintech ecosystem is growing in El Salvador, following the global trend, there is still no specific legal framework for it. The absence of specific regulation has led these activities to develop within the free market, respecting the general financial regulations established for traditional financial participants. However, this has generated uncertainty for investors and…

Deductions in Labor Matters in Nicaragua
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Deductions in Labor Matters in Nicaragua

As salary constitutes the compensation paid by the employer in exchange for services rendered and, in many cases, the sole source of income for salaried workers, labor legislation has regulated the issue of deductions, establishing the general rule in art. 88 of the Labor Code that legal deductions shall be made from the salary. These…

Simplified National Employer Registry System´s creation in Honduras
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Simplified National Employer Registry System´s creation in Honduras

The Simplified National Employer Registry System (RNSP) has recently been established under the auspices of the Ministry of Labor and Social Security, through the General Directorate of Labor Inspection. As a result, it is mandatory for all natural persons, legal entities, individuals, and public or private entities exercising activities in Honduras, either for their benefit…

Considerations on Capital Reduction in Guatemala
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Considerations on Capital Reduction in Guatemala

Within the social and financial operation of a commercial company, it is common to see an increase or decrease in the capital contributed by its partners or shareholders, depending on the results that the business reflects at certain times in the life of the company. While increasing capital is more familiar within the corporate sphere,…

Profits and returns from abroad will be non-taxable income in El Salvador
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Profits and returns from abroad will be non-taxable income in El Salvador

On March 12, 2024, the Legislative Assembly of El Salvador approved an amendment to the Income Tax Law (LISR), by adding a numeral 4) to Article 3 of the Law. The amended article regulates the cases of non-taxable income, and to this effect, the new numeral establishes the following: “Income for this Law does not…

Aspects of Corporate Governance Regulations for CNBS-Supervised Institutions
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Aspects of Corporate Governance Regulations for CNBS-Supervised Institutions

On October 22, 2022, in the Official Gazette No. 36,057, the Corporate Governance Regulation for Supervised Institutions (hereinafter referred to as the Corporate Governance Regulation) was published, establishing an adaptation period of 8 months. During the adaptation period, we had the opportunity to advise banks, insurance companies, and other institutions supervised by the CNBS in…

Transfer Pricing Obligation in Nicaragua
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Transfer Pricing Obligation in Nicaragua

Transfer prices refer to the amounts set between related parties for the transfer of tangible and intangible goods or services. The guiding principle behind these is the “Principle of Free Competition“, which means that prices agreed upon between related parties cannot differ from those agreed upon by independent companies in similar operations and circumstances. Nicaraguan…