Nicaragua: forestry promotion
Nicaragua continues to promote forestry projects, including reforestation initiatives, following the publication in December 2012 of a new tax law, which took effect in January of this year and which provides that existing tax benefits in the forestry will continue until December 31, 2023.
Among other benefits, all individuals and corporations may deduct up to 100% of income tax, in the case of projects that promote reforestation or forest plantation, and which have been previously approved by the National Forestry Institute (INAFOR).
In addition, registered forest plantations will have an exemption of 50% of municipal sales tax, and 50% of income tax.
Companies in any line of business, which invest in forest plantations, may for purposes of national income tax, deduct as an expense 50% of the amount invested.
Meanwhile, companies other than sawmills, engaged in secondary and tertiary transformation of forest products, can import free of duty. machinery, equipment and accessories that enhance the technology of timber production.
For more information, please contact Belén Fonseca at [email protected], or (505) 2254-5454.