Companies should be prepared to make a number of payments to the tax authorities each year exceeding the average for the Latin American region. Paying value added taxes (VAT) and corporate income taxes are among the activities that require the most payments annually. The US Department of State 2011 reports that tax audits of foreign investors have increased in frequency and duration to the point where they may hinder normal business operations. Furthermore, the same report also notes that the government has occasionally used the tax authorities to pressure individuals and companies into accepting non-commercial terms in concessions or contracts. The same source reports that investors cite arbitrariness in taxation procedures, as well as a lack of delegation of decision-making authority.
According to Global Integrity 2011, tax laws are not always enforced uniformly or without discrimination in Nicaragua. Nevertheless, only a small amount of the surveyed companies expect to give gifts when meeting with tax inspectors, according to the data from the World Bank & IFC Enterprise Surveys 2010.