In international trade transactions, royalty payments can have a direct impact on the determination of customs value and, consequently, on the applicable tax burden.
In this analysis, our Nicaragua Partner, Melvin Estrada, explains how these payments must be included in the customs value when they constitute a condition of sale, regardless of how they are structured in the contract.
The article highlights the importance of evaluating the transaction as a whole, including contracts, payment flows, and the relationship between the parties, to ensure consistency and mitigate risks with customs authorities.
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Royalties and customs duties: how they affect the import value
