The legal directory International Tax Review (ITR) recognized Consortium Legal as “Central America Tax Firm of the Year” at the annual gala held last Thursday, September 14 in New York City, United States. The event brought together the best law firms in the continent to highlight their work in the most innovative transactions of 2022,…
Article 103 of the Tax Code of the Republic of Nicaragua and its amendments (CTr) regulates the obligation of all taxpayers to register and keep their information updated in the Single Taxpayers Registry (RUC) of the General Revenue Directorate (DGI) of the Ministry of Finance and Public Credit (MHCP). For such purposes, the Tax Administration…
There are so many things that are attributed to invoices. Many qualities and functions that colloquially, even the authorities promulgate, are repeated, and repeated without really being functions of these documents. An invoice, in Guatemala, is a fiscal document of the VAT regime. Its function is only to document the obligation to charge VAT on…
The Digital Assets Law, which is in force since February 1, 2023, aims to establish a legal framework that provides legal certainty to the transfer operations of any title of digital assets used in public offerings issued in El Salvador. Likewise, it regulates the requirements and obligations of issuers, digital asset service providers, and other…
It may sound obvious, but historically, economics has recognised that the profits of any business are obtained after selling or transferring an asset, at a higher value than the cost of acquiring it by the transferor. This profit margin, or greater value, has always represented income and indicates that the recipient has gained something (hence…
In accordance with Art 82 of Law No. 562 “Tax Code of the Republic of Nicaragua” (CTr) and its reforms, in any procedure before the Tax Administration, the taxpayer may act personally or through a legal representative duly accredited with sufficient power of attorney. In this sense, Art 103 determines that it shall be the…
As a general rule, during the procedure of definitive importation of goods into Salvadoran territory, the owner of the goods must pay the taxes that are caused, unless these goods are subject to a tax exemption or are not subject to the payment of these taxes. However, there is an import modality that can be…
Transfer Pricing provisions originate to establish principles and regulations to the costs or amounts agreed by multinational entities in their international transactions and their impact on the calculation of the income tax base. This is done, mainly, to avoid a detriment or deferral of the payment of taxes in each jurisdiction. The objective is that…
Nicaraguan law requires companies to register as taxpayers with the General Revenue Directorate (DGI). The Single Registry of Taxpayers (DGI) contemplates basic data of the company, such as: Shareholder composition. Current Board of Directors. Tax domicile. Economic activity. Legal representative. It is the taxpayer’s obligation to keep this information updated, being necessary to carry out…
It is said and insisted that it is necessary, but the most important question is whether it is truly Law. An approach to competition law that seeks the existence of a competition authority that allows actions is undoubtedly a constitutional aberration. An authorization to sell my business is essentially an indirect expropriation. The justification that…
Regional Tax Team Concept and background: Capital gains are those that are generated by activities outside the taxpayers’ line of business. That is to say, they do not come from their line of business or usual activity. Capital gains occur when as a result of a monetary operation, there is a difference between the amount…
Since November 2021, the Tax Administration has made some communications with taxpayers requiring some specific forms regarding the presentation of reconciliations and audited financial statements, when applicable. It is important to start by defining who is obliged to submit such financial statements to the Tax Administration. Several legal bodies place this obligation. Income Tax In…