Nicaragua to sign TIEA with U.S. soon. (Tax Information Exchange Agreement with the United States)

Nicaragua to sign TIEA with U.S. soon

The government of Nicaragua expects to sign and ratify a Tax Information Exchange Agreement (TIEA) with the U.S. in the coming weeks. Ratification of such an agreement will make the Central American nation eligible to receive loans using 936 funds, profits of local subsidiaries of U.S. mainland companies operating under Section 936 of the U.S. Internal Revenue Code, from Puerto Rico's Caribbean Development Program to finance economic development projects.

Nicaragua became eligible to participate in the federal Caribbean Basin Initiative (CBI) program last November (see CARIBBEAN BUSINESS, Nov. 29, 1990) as part of the new …