IMF Recommends Tax-Boosting Reforms For Nicaragua

by Mike Godfrey, Tax-News.com, Washington

08 May 2017

Nicaragua should focus on broadening the country's tax base and further strengthening tax administration, the International Monetary Fund (IMF) has said.

The IMF said that the country also needs to introduce further legislation covering international taxation, to respond to the OECD's base erosion and profit shifting Action Plan and to transfer mispricing.

It added that advances in tax administration and the implementation of tax reform measures announced in 2012 had boosted revenues by 0.6 percent of gross domestic product in 2016. Looking ahead, it said additional fiscal consolidation needed to address the country's current challenges could be obtained by eliminating tax expenditures, and rationalizing and better targeting subsidies.

TAGS: tax | Nicaragua | International Monetary Fund (IMF) | transfer pricing | tax reform