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…

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,…

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…

Update on minimum capital requirements in Nicaragua´s financial institutions
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Update on minimum capital requirements in Nicaragua´s financial institutions

In February of this year, the Superintendence of Banks and Other Financial Institutions of Nicaragua (SIBOIF) published regulations updating the minimum capital requirements for the following financial institutions: The minimum capital requirement for financial institutions is initially outlined in the laws applicable to each institution and is updated every two years through prudential regulations published…

The Impact of Tax Exemptions on Honduras’ Public Finances
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The Impact of Tax Exemptions on Honduras’ Public Finances

It is no secret that tax exemptions are at the center of debate due to their impact on public finances. Recently, SAR (Tax Administration Service) reported that in 2023, tax exemptions totaling L56,560 million were granted in Honduras. This note explores the significance of these exemptions and analyzes their effects on the country’s finances. Tax…

Non-compete agreements in share purchase transactions in Costa Rica
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Non-compete agreements in share purchase transactions in Costa Rica

During share purchase transactions between companies in Costa Rica, it is common for buyers and sellers to enter a non-compete agreement. This agreement aims to impose a “negative obligation” on the seller to refrain from participating in the acquired company’s market. Non-compete clauses or agreements represent ancillary restrictions agreed upon by the parties involved in…

Fiscal impact of the frozen exchange rate of the cordoba against the US dollar
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Fiscal impact of the frozen exchange rate of the cordoba against the US dollar

The Central Bank of Nicaragua (BCN) is the entity responsible for determining and executing monetary and exchange rate policy in coordination with the government’s economic policy, under Law No. 732 “Organic Law of the Central Bank of Nicaragua.” In this sense, the BCN sets the annual exchange rate policy and determines the official exchange rate…

Extension of deadline for the importation of used vehicles in El Salvador
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Extension of deadline for the importation of used vehicles in El Salvador

Recently, the General Directorate of Customs (DGA), under the provisions of art 440 of the Regulation of the Uniform Central American Customs Code (RECAUCA), has modified the period of stay for vehicles owned by foreign tourists, Salvadorans residing abroad, and Salvadoran students residing abroad. Until January 15, 2024, all foreign tourists, Salvadorans residing abroad, and…

Export and Phytosanitary Health Certificates and Their Electronic Transmission in Central America
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Export and Phytosanitary Health Certificates and Their Electronic Transmission in Central America

Central American origin goods requiring documentation of their sanitary and phytosanitary condition to any country part of Central American Integration must transmit the certificate electronically through the corresponding institution of the country of origin and the Central American Trade Platform (PDCC). As part of the Central American Trade Facilitation Strategy, approved in Agreement No. 01-2015…

Free Trade Agreement between the Government of the People’s Republic of China and the Government of Nicaragua
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Free Trade Agreement between the Government of the People’s Republic of China and the Government of Nicaragua

On November 17, 2023, the full text of the National Assembly No. 8868 Decree that approves the Free Trade Agreement between the Government of the People’s Republic of China and the Government of China was published in La Gaceta, Official Gazette No. 2023. Free trade agreements, between two or more countries, revitalize their trade reducing…

Simplified joint stock companies in El Salvador
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Simplified joint stock companies in El Salvador

In the plenary session of December 6, 2023, the Legislative Assembly of El Salvador approved a series of new reforms to the Commercial Code to implement certain provisions with innovative elements to facilitate business in the country, boost the economy, and contribute to economic growth. All of this is achieved through the modernization of commercial…