Transfer Pricing Deadline in Nicaragua

August 6, 2021

Documentation Filing

Only the taxpayer shall file the information in question within ten working days after being requested by the Tax Administration.

This point is not clear due to the contradiction regarding the stipulation of the same legal article, which states that the filing deadline is 45 days after request. Clarifications are eventually expected.

Transfer Pricing Studies Preparation

According to Article 104 of the LCT (Ley de Concertación Tributaria – Tax Concertation Law), the information or supporting documentation of prices must be available when filing the tax return. Conversely, the taxpayer should only provide the established documentation when requested by the Tax Administration within 45 days after the notification.

Filed Documentation

According to Article 103 of the Law, taxpayers must have the documentation of related-party transactions when filing the Income Tax return.

Such documentation or technical Transfer Pricing study must consider information relating to the taxpayer and the business group to which the former belongs, as well as concerning the description and analysis of transactions subject to the rules in this matter.

Gathered Information Keeping

Under the general provisions of the Tax Code in Article 43, the prescription period established to retain tax information is four years. To date, the taxpayer must safeguard the Transfer Pricing study until expressly required by the tax authority.

Entity Obligated to File the Transfer Pricing Study

  • Transactions between a taxpayer resident in the country and non-resident-related parties.
  • Transactions between a resident and those operating in a free trade zone regime.

Article 95 of the LCT indicates the objective scope of the Transfer Pricing application, which reaches the following:


Source: Dirección General de Ingresos (DGI)