Honduras

Overview

Last reviewed - 10 January 2020

Honduras, strategically located in the heart of Central America, is bordered by Guatemala to the west, El Salvador to the southwest, Nicaragua to the southeast, the Caribbean Sea to the north, and the Pacific Ocean to the south. Honduras is divided into 18 departments. While its political capital is Tegucigalpa, San Pedro Sula is the industrial capital due to its contribution to the country's economy. The official language of Honduras is Spanish, and the currency is the lempira (HNL).

Honduras is a distribution centre, with Puerto Cortés as the main sea port in Central America. The economy relies heavily on a range of exports, notably apparel, bananas, and coffee. However, it has emerging sectors in agriculture, textile, light manufacturing, sustainable tourism, and business services. The gross domestic product (GDP) composition by sector is: agriculture 15%, industry 27%, and service 58%. The United States-Central America Free Trade Agreement (CAFTA) entered into force in 2006 and has helped foster investment in this country. The economy expects to register positive economic growth in 2020.

PwC InterAmericas is a regional entity comprised of seven firms: PwC Guatemala, PwC El Salvador, PwC Honduras, PwC Nicaragua, PwC Costa Rica, PwC Panama, and PwC Dominican Republic. Together, we have over 1,000 professionals ready to provide our clients with audit, tax, legal, and consulting services. PwC InterAmericas firms are backed by over 40 years of experience rendering a high standard of professional services to the private sector, public sector, and non-profits. PwC Honduras supports clients with the local knowledge and skills of its people and with access to a broad range of other professionals across the PwC global network of firms.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

25, plus a surcharge of 5% on net taxable income over HNL 1 million.

Corporate income tax (CIT) due dates
CIT return due date

30 April

CIT final payment due date

30 April

CIT estimated payment due dates

Advance tax payments are payable each quarter.

Personal income tax (PIT) rates
Headline PIT rate (%)

25

Personal income tax (PIT) due dates
PIT return due date

NP

PIT final payment due date

NP

PIT estimated payment due dates

Monthly

Value-added tax (VAT) rates
Standard VAT rate (%)

Sales tax: 15

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: 10 / 10 / 25;

Non-resident: 10 / 10 / 25

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

10

Individual capital gains tax rate (%)

10

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NP

Inheritance and gift tax rates
Inheritance tax rate (%)

NP

Gift tax rate (%)

NP

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.