Nicaragua

Ease of Doing Business in

Nicaragua

This page summarizes Doing Business 2013 data for Nicaragua. The first table lists the overall "Ease of Doing Business" rank (out of 185 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

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Economy Summary
Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering Property
Getting Credit
Protecting Investors
Paying Taxes
Trading Across Borders
Enforcing Contracts
Resolving Insolvency
Region Latin America & Caribbean
Income Category Lower middle income
Population 5,869,859
GNI Per Capita (US$) 1,170
Doing Business 2013 Rank Doing Business 2012 Rank Change in Rank
119 120 down 1

Doing Business 2013 DTF** (% points) Doing Business 2012 DTF** (% points) Improvement in DTF** (% points)
57.7 57.1 down 0.6
Topic Rankings DB 2013 Rank DB 2012 Rank Change in Rank
Starting a Business 131 131 No change
Dealing with Construction Permits 154 149 up -5
Getting Electricity 129 127 up -2
Registering Property 123 123 No change
Getting Credit 104 97 up -7
Protecting Investors 100 98 up -2
Paying Taxes 158 156 up -2
Trading Across Borders 81 86 up 5
Enforcing Contracts 55 55 No change
Resolving Insolvency 80 82 up 2

Economy Profile

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Paying Taxes

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This data shows the tax that a medium-size company must pay or withhold in a given year, as well as measures of the administrative burden in paying taxes. These measures include the number of payments an entrepreneur must make; the number of hours spent preparing, filing, and paying; and the percentage of their profits they must pay in taxes.

DB 2013 Rank 158 DB 2012 Rank 156 Change in Rank down-2
DB 2013 DTF** (% points) 47.5 DB 2012 DTF** (% points) 46.5 Improvement in DTF** (% points) up1.0
Indicator Nicaragua Latin America & Caribbean OECD

The total number of tax payments per year. The indicator reflects the total number of taxes and contributions paid, the method of payment, the frequency of payment and the number of agencies involved for a standardized case during the second year of operation.

View methodology Payments (number per year)
42 30 12

The time it takes to prepare, file and pay (or withhold) the corporate income tax, the value added tax and social security contributions (in hours per year).

View methodology Time (hours per year)
207 367 176

The amount of taxes on profits paid by the business as a percentage of commercial profits.

View methodology Profit tax (%)
22.9 21.5 15.2

The amount of taxes and mandatory contributions on labor paid by the business as a percentage of commercial profits.

View methodology Labor tax and contributions (%)
20.3 14.4 23.8

The amount of taxes and mandatory contributions paid by the business as a percentage of commercial profit that are not already included in the categories of profit or labor taxes.

View methodology Other taxes (%)
21.8 11.3 3.7

The total tax rate measures the amount of taxes and mandatory contributions payable by the business in the second year of operation, expressed as a share of commercial profits.

View methodology Total tax rate (% profit)
65.0 47.2 42.7
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% profit) Notes on TTR
Corporate income tax 1 online filing 67 30% taxable profit 22.9
Employer paid - Social security contributions 12 76 16% gross salaries 18
Turnover tax 12 1% sales (purchase cost) 17.7
Assets tax 1 1% assessed total asset value 4.7 included in other taxes
Profit tax 1 10% distributed profits 2.7
Employer paid - Training tax 12 2% gross salaries 2.3
Real estate tax 1 1% property value 1.2
Fuel tax 1 1% fuel consumption 0.2
Value added tax (VAT) 1 online filing 64 15% value added 0 not included
Totals: 42 207 65.0

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the indicators across all economies included in Doing Business since each indicator was included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

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