National Assembly Approves Reform Extending Tax Benefits to Free Trade Zone Law
The National Assembly unanimously approved reforms to the Export Free Trade Zone Law, which consist of extending the periods of tax benefits.
TL;DR
- The National Assembly unanimously approved reforms to the Export Free Trade Zone Law, extending tax benefits.
- The reforms aim to strengthen foreign investment, dynamize exports, and consolidate economic growth.
- Key goals include productive chaining, job creation, regional development, international trade, legal security, and sustainable production.
- The reform ensures tax exemptions are indefinite, not temporary, to prevent companies from migrating after their initial operational period.
- From 2007 to the present, free trade zone exports increased from $1.11 billion to $3.587 billion, with the number of companies growing from 121 to 169.
- Direct employment in these zones increased from 84,000 to 116,762 by 2025.
- The reforms are designed to avoid negative impacts from trade wars and promote new investments to generate wealth and employment.
- The article highlights Nicaragua as a 'trending topic' for investment due to peace, legal security, stability, and controlled crime.