By: Ana Carolina Barquero
Any natural or legal person engaged in commercial operations, buying and/or selling any type of products or services is obliged to apply for municipal registration at the corresponding mayor’s office on an annual basis, in compliance with the provisions of art. 3 of the Municipal Tax Plan, and the Tax Plan of the Municipality of Managua.
Keeping the registration to date at all times is a fundamental requirement for the operations of the companies, as well as to obtain relevant documents such as Municipal Solvency, and other guarantees required for the commercial operations of such company.
The Municipal License granted to the companies or businesses, natural or juridical persons, whose obtaining allows them to develop their economic activity in the municipality they are requested, are subject to renewal, since they are valid from January 1 to December 31 of each year.
To renew the Municipal Registration, each taxpayer must previously manage and present as first requirements:
- Registration form.
- Membership update form.
- Photocopy of each member’s identification card.
- Photocopy of power of attorney and identity card of the legal representative. (General Power of Attorney or General of Administration).
In addition to this, the following obligations must be presented or processed:
- Valid RUC card.
- Tax solvency (DGI) and municipal (IBI, garbage collection, bearing, etc.).
- Tax of signs (the amount is determined according to the size and location, its declaration is annual).
- Environmental endorsement.
- Special notarized power of attorney and photocopy of identity card (if acting on behalf of the taxpayer).
- If your business requires special permits, such as from the National Police or MINSA, these must also be renewed.
It is important to note that the Management of the Collection Department of the corresponding district may carry out verifications of the reported category of the business, in order to check if it corresponds with the registration made.
For individuals, the Registration Tax requiered an annual payment and its value is determined according to the type of economic activity.
Legal entities will pay a 2% registration tax on the average gross income of the last 3 months of the previous year, or the last 3 months that there was income.
Finally, if the taxpayer does not comply with these obligations, the Plan de Arbitrios of the Municipality of Managua establishes the following penalties:
- 3% on the amount due for each month of delay in the payment of monthly taxes or fees.
- 5% of the amount due for each month of delay in the payment of annual taxes or fees.
- In both cases when the delay is greater than three months, the amount due shall be increased by 10%.
- In case of alteration or hidden information to partially or totally evade the payment of municipal taxes, a fine of 100% of the amount defrauded or evaded shall be applied, without prejudice to the respective criminal liability.
Executive Decree No. 455, approved on July 5, 1989, published in the Official Gazette No. 144 of July 31, 1989.
Executive Decree N°. 10-91, approved on February 5, 1991, published in La Gaceta, Diario Oficial N°. 30 of February 12, 1991.- Executive Decree N°. 10-91, approved on February 5, 1991, published in La Gaceta, Diario Oficial N°. 30 of February 12, 1991.