Taxes in Honduras

The Honduran tax system is based on the Constitution, the Código Tributario Decreto 170-2016 and specific laws such as the Ley del Impuesto Sobre la Renta and Ley del Impuesto Sobre Ventas. The Servicio de Administración de Rentas (SAR) registers taxpayers, assesses and collects national taxes, reviews returns and issues tax certificates. Administración Aduanera de Honduras, commonly called Aduanas, handles customs procedures. Municipalities administer local taxes under the Ley de Municipalidades, including property tax, the municipal personal tax and the tax on industry, commerce and services. Local rates, registration requirements and due dates vary by municipality and ordinance. Individuals and companies may need a Registro Tributario Nacional (RTN), the taxpayer registration number used for tax administration. Initial RTN issuance is free and normally immediate through a personal application or an authorized representative. The Oficina Virtual allows taxpayers to file returns, make payments, request certificates, correct submissions and manage related procedures. Businesses may also need an authorized invoicing regime and compliant comprobantes, or tax receipts, for sales and services. Personal income tax, called Impuesto Sobre la Renta (ISR), generally covers employment, capital and business income. Resident or domiciled individuals may be taxed on Honduran and foreign-source income under the applicable rules. Individual rates are progressive at 15%, 20% and 25%, with the scale adjusted annually by the consumer price index. Employers commonly withhold employment ISR during the year. Companies generally pay 25% on taxable net income. Non-residents are taxed on Honduran-source income, with withholding rates that often fall at 10% or 25% depending on the income type and the applicable rule. The Impuesto Sobre Ventas (ISV) is a non-cumulative tax on taxable sales, services and imports. The standard rate is 15%; an 18% rate applies to certain goods and services, including alcohol, cigarettes and some privileged air tickets. ISV returns and payments are generally due by the tenth calendar day of the following month. Large and medium taxpayers and certain other taxpayers may also submit a Declaración Mensual de Compras (DMC) by the eighth day and a Declaración Mensual de Retenciones (DMR) by the tenth day. A taxpayer with one establishment and taxable annual sales of no more than L250,000 may qualify for the Régimen Simplificado ISV, subject to current SAR conditions. This regime removes the monthly ISV return and requires an annual sales report by January 31. Annual ISR returns are generally due by April 30. Pagos a Cuenta, or advance income-tax payments, are generally due on June 30, September 30 and December 31, with the balance or fourth instalment due by April 30. A company may also face the Aportación Solidaria of 5% on the portion of taxable net income above L1,000,000 under the applicable SAR calculation, as well as Impuesto Activo Total Neto calculated under the statutory basis. Other forms can apply to sectors, capital gains, rent and financial transactions. Imports can generate Derechos Arancelarios a la Importación (DAI), ISV, selective or other taxes and customs fees. Aduanas applies the customs valuation and declaration rules under the Ley de Aduanas and the CAUCA/RECAUCA framework. Preferential rates depend on the relevant trade agreement and proof of origin. A company involved in related-party transactions may also have transfer-pricing duties under Decreto 232-2011 and Reglamento 027-2015. An annual informative transfer-pricing return can apply especially to medium and large taxpayers, related parties, special regimes and transactions involving low-tax jurisdictions or tax havens. Missing or incorrect information can lead to a fine of USD 10,000 under the cited SAR guidance. Taxpayers have duties to register, update their information, issue and retain supporting documents, file returns, withhold and remit amounts when required, answer lawful information requests and cooperate with audits. They can use the Oficina Virtual, request corrections, seek a refund or credit note where permitted and use the remedies provided by the Código Tributario. Late Pagos a Cuenta can incur interest of 3% per month or fraction, up to 36%, according to SAR guidance. Limitation periods differ: four years for customs matters, five years for RTN-registered taxpayers and seven years in other cases under the Código Tributario. Honduras also has tax-information cooperation arrangements, including the United States agreement under Decreto 115-91, regional assistance and its 2022 signature of the OECD Convention on Mutual Administrative Assistance in Tax Matters. Double-tax agreements should be checked for the specific country rather than assumed from a general list.