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Latin America Investment News on Viva Tropical

Nicaragua’s $50,000 Tax Benefit

Article Summary:

Tax exemptions for tourism investments in Nicaragua are under scrutiny by the country’s Chamber of Small and Medium Tourism Businesses, who say only those investors who shell out between $50,000 and $100,000 are eligible to receive tax benefits.

Photo Credit: El Nuevo Mundo

Original Article Text From El Nuevo Mundo via Google Translate :

Cantur Ask to Review exemptions to tourism system

The Nicaraguan Chamber of Small and Medium Enterprises in Tourism, Cantur, yesterday demanded the government to improve the system of exemptions to the sector in the new tax law to be adopted later this year.

President Cantur, Leonardo Torres Cespedes declared Law 306 Incentives Act Tourism Sector, provides that access to exemptions for small businesses must invest between U.S. $ 50,000 and U.S. $ 100,000, which he considered “very high” for that sector.

“Then the entrepreneur that maybe wants to make an investment of U.S. $ 10,000 or U.S. $ 15,000 must pay all fees, while the medium and large employer that invests more than $ 100,000 do not pay income tax, property tax and exonerate him all imports of equipment for 10 years, “he said.

Cespedes Torres suggested that the new tax law will lower the investment ceiling for micro and small tourism entrepreneurs access exemptions.

The proposal submitted to the Government Cantur is that incentives be granted to microentrepreneurs tourism sector where investments are between $ 5,000 and $ 10,000.

In the case of small businesses, would benefit when their investments are between $ 10,000 and $ 15,000, and the medium when injected up to $ 30,000.

He said that since 2007 have approved nearly $ 500 million in tax benefits for the tourism industry, of which less than 20% have been for small and medium businesses.

Torres Cespedes said only last year exemptions to the tourism industry totaled U.S. $ 140 million.

The Government disagreed with the private sector a new tax law passed in December would be in the National Assembly.

Nicaragua is the country in Central America that less wealth generated from tourism and, according to official figures, last year the country received 1.1 million tourists.

The Nicaraguan Tourism Institute, Intur, reported that tourism in 2011 generated $ 377 million this year and expect to exceed $ 400 million.

For its part, the Ministry of Finance, estimated that in 2010 the overall revenue loss due to exemptions schemes, exemptions and special treatments given to different sectors of the economy, rose to C $ 10,544.9 million.

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From El Nuevo Mundo

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