Are you planning to cease your tax residency in Nicaragua? This comprehensive guide will walk you through the necessary steps to legally and effectively end your tax obligations in the country.
Step 1: Notify the Tax Authority
Prepare a formal written notice to inform the Nicaraguan tax authority (Dirección General de Ingresos, DGI) of your intention to cease your tax residency. This notice should include your full name, tax identification number, and the date you intend to cease residency.
Step 2: Settle Outstanding Tax Obligations
Ensure that all your tax liabilities are settled before you cease your tax residency. This includes payment of any outstanding income tax, VAT, or other applicable taxes. Obtain a certificate of tax clearance from the DGI, confirming that there are no pending obligations.
Step 3: Provide Proof of New Tax Residency
Submit evidence of your new tax residency status in another country. This can include a residency certificate or other official documentation from the relevant tax authority in your new country of residence.
Step 4: Update Personal Information
Update your address and contact information with the DGI to ensure that any future communications are directed to your new address. This step is crucial for receiving any final correspondence or tax documents related to your Nicaraguan tax obligations.
Step 5: Confirm Cessation of Residency
Request a formal acknowledgement from the DGI confirming the cessation of your tax residency in Nicaragua. This document will serve as official proof that you are no longer considered a tax resident in the country.
Legal References
- Ley de Concertación Tributaria, Ley No. 822
- Reglamento de la Ley de Concertación Tributaria, Decreto No. 01-2013
- Código Tributario de la República de Nicaragua, Ley No. 562
Useful Links
