The tax regime in Honduras is governed by a system based on the principle of territoriality of income for both natural and legal persons.
This regime includes direct and indirect taxes and although there are no special regimes for micro or small companies, there are special regimes for customs matters.
The purpose of this article is to provide information on the main aspects of the tax regime in Honduras and the special customs regimes.
Income Tax on Legal Entities
According to the Income Tax Law, this tax is levied on any type of income derived from labor, capital or the combination of these.
In case, the corresponding rate for this type of persons according to article 22 of said law is 25%, which is calculated on the taxable base. The latter is constituted by the gross income minus the deductions allowed by this law.
In the case of legal entities, the tax is paid through quarterly advances, due on June 30, September 30 and December 31, with the last payment being made with the tax return corresponding to April 30 of each year.
Net Assets Tax
Legal entities domiciled in Honduras must pay tax at a rate of 1% on the value of their net assets, which appear in the tax return, minus the deductions allowed by law.
Tax on employees and individuals
In this case the withholding will be applied for those individuals who have received income in a fiscal period for an amount higher than L.165,482.06. The applicable rate for this will depend on a progressive scale, whereby rates from 15% to 25% may be applied.
Honduras has different special regimes, two of the most important being the “Free Trade Zone” (ZOLI) and the Temporary Import Regime (RIT).
Free Trade Zone (ZOLI)
Its objective is to establish a free trade zone in Honduras, in which companies are dedicated to export.
To obtain this benefit, a permit must be requested from the Secretariat of Economic Development. Among the benefits of this regime are the exoneration of payment of tariffs, internal taxes, excise taxes and other taxes that could be levied on the merchandise in the free trade zone.
Temporary Import Regime (RIT)
The purpose of this regime is to encourage exports in the case of companies that do not have any benefit under any other law.
Among the benefits of this regime are the suspension of customs duties and other import taxes related to raw materials and samples. Also, the payment of income tax related to profits from the export of goods to non-Central American countries is exempted.