The Ministry of Finance and Public Credit (MHCP) published on June 20, 2022, Ministerial Agreement No. 011-2022 (“Rules and Procedures for the Application of Exemptions to Electric Mobility”), in order to provide of an exhaustive list of all those electric vehicles, spare parts and Charging Stations that will have a series of temporary tax incentives.
In this sense, with the approval of Law No. 1,111 (“Law of Reform and Additions to Law No. 554 Energy Stability Law”), published in La Gaceta, Diario Oficial No. 35 of February 22, 2022 and as we stated in our previous article (Nicaragua – Towards electric mobility), a series of temporary tax incentives were created for the introduction of new electric vehicles into the country, with exemptions from the Import Tariff Right (DAI), Selective Consumption Tax ( ISC) and Value Added Tax (VAT), as well as the charging centers for the batteries of these vehicles, and must have prior authorization from the Ministry of Energy and Mines (MEM).
Said reform mandated the Ministry of Finance and Public Credit (MHCP) to determine the exhaustive list for the purposes of applying the exemptions, which was recently fulfilled through the aforementioned Ministerial Agreement, which contemplates the procedure to process, approve and validate the exemptions contemplated by Law No. 1,111, for which the series of requirements that applicants must prove is established.
Its sixth article establishes the exhaustive list of exemptions, for which a breakdown is made in attention to various types of vehicles, such as electric cars and vans, motorcycles and velocipedes, minibuses and buses, boats for the water transport of people or goods; or spare parts, such as electric motors, battery modules, adapters, connectors, cables, throttle or automatic control modules. Electric trucks for freight transport are also benefiting, as well as Charging Stations and their spare parts.
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If you require more information in this regard, you can contact CENTRAL LAW at the following email address: info@central-law.com.
Álvaro Molina Vaca
Socio
CENTRAL LAW en Nicaragua
Avil Ramírez Mayorga
Asociado
CENTRAL LAW en Nicaragua
