Nicaragua – Regulations for the constitution of savings and/or pension funds established in the Tax Agreement Law and its regulations

On 23 June 2022, the interinstitutional agreement “Regulations for the creation of savings and/or pension funds established by the tax consultation law and its reforms” entered into force. By this regulation, the creation of the Savings and/or Pension Funds Commission was agreed, formed by the Ministry of Finance and Public Credit (MHCP), which presides, the Superintendency of Banks and Other Financial Institutions (SIBOIF ) and the Ministry of Labor (MITRAB).

  • Some of the functions of the Commission will be to: review applications for funds and/or pensions and verify compliance with requirements; if the requirements are not met, the correction of these will be requested, through the intermediary of the MHCP. If the request complies with the requirements, the committee must approve or reject it.
  • Concerning savings and/or pension funds: they must be in favor of workers, have a minimum of 20 affiliated workers, be funded by contributions from workers and the employer if so agreed; they must provide savings, credit and guarantee benefits. Requests should be directed to MHCP. The funds cannot be invested in the economic activities of the employer.
  • Concerning the request for authorization: A series of documents must be presented, including general documents from the employer and draft operating regulations for the savings and/or pension fund. The authorization granted by the Commission will be valid for 5 years and may be renewed at the request of a party for a shorter or equal period.
  • Tax provision: The savings and/or retirement funds that companies or public and private establishments are in the process of creating will have a period of sixty days from June 23, 2022 to submit the corresponding application for approval.