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Honduras
Corporate - Income determination
Last reviewed - 27 February 2026Taxable income is computed based on generally accepted accounting and commercial principles, as adjusted in accordance with applicable tax legislation.
Inventory valuation
Inventory is generally valued using the first-in, first-out (FIFO), last-in, first-out (LIFO), or weighted-average cost methods.
Capital gains
Capital gains are not generally subject to CIT but may be subject to capital gains tax. See Capital gains tax in the Other taxes section for more information.
Dividend income
Dividend income is classified as “other income” and is therefore not subject to the general income tax rates. Dividends distributed to resident individuals or entities are subject to a 10% withholding tax (WHT).
A 10% WHT also applies to dividends paid to non-residents.
Any dividends or profit distributions that have already been subject to the applicable 10% dividend WHT are not taxed again upon redistribution.
Stock dividends
In principle, stock dividends are also not taxable when they are treated as a capitalization of the company. However, each transaction should be analyzed on a case-by-case basis, taking into account its specific facts and circumstances.
Interest income
Honduran Bank interests are subject to a 10% WHT at the moment the interest is given, when the sum is over L 50,000. Interests from abroad are considered as other income. For income tax reconciliation, interest income is considered non-taxable when subject to the 10% WHT.
Royalty income
Royalties are taxed as ordinary income when received by a local company or branch operating in Honduras. Where the recipient is a non‑resident, royalties are subject to withholding tax at source at a rate of 25% on the gross amount, in accordance with Article 5 of the Honduran Income Tax Law
Foreign income
Deferral and anti-deferral of foreign income are not regulated in Honduras.
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