Honduras

Companies operating under special tax regimes may benefit from exemptions from corporate income tax (CIT), sales tax, customs duties, and, in certain cases, municipal taxes. The principal special tax regimes currently available in Honduras include the following:

• Free Trade Zones (FTZs).
• Industrial Processing Zones (Zonas Industriales de Procesamiento or ZIPs).
• Temporary Import Regime (Régimen de Importación Temporal or RIT).
• Tourism Incentives Law.
• Law for the Promotion of Electric Power Generation from Renewable Resources (Ley de Promoción a la Generación de Energía Eléctrica con Recursos Renovables), which grants tax incentives to qualifying renewable energy projects.

The FTZ regime includes specific provisions for international service companies, such as business process outsourcing (BPO) providers, call centres, contact centres, and shared service centres, which may access the same benefits available under the regime. Additionally, the Call Centre and BPO Promotion Law provides exemptions on the importation of tools, equipment, furniture, spare parts, and other assets directly related to the authorised activity, as well as income tax benefits on qualifying revenues generated within the regime.

To qualify for any of these special regimes, taxpayers must comply with the applicable legal, regulatory, and administrative requirements and obtain the relevant governmental approvals.

Companies operating under special tax regimes may sell part or all of their production in the domestic market. However, income derived from local sales is generally subject to the ordinary corporate tax rules applicable in Honduras.

Amendments to customs and tariff legislation introduced by Decree No. 278-2013 established a list of customs and tariff exemption provisions that remain in force and continue to grant tax benefits. Likewise, amendments to the income tax framework confirmed the continued validity of certain income tax exemptions previously granted under specific legislative decrees. Given the complexity and scope of these provisions, consultation with local tax advisers is generally recommended.

Unless otherwise provided in the relevant authorising resolution or specific legislation, tax benefits granted under a special tax regime are generally limited to a period of 12 years.

The Law for the Promotion and Protection of Investment (Ley para la Promoción y Protección de las Inversiones) was amended to establish a 15-year term for tax stability agreements, except in the case of Public-Private Partnership (PPP) projects. The amendment also repealed the special income tax credits previously available under the law.

In addition, Honduras grants incentives to export-oriented manufacturing operations that import semi-finished goods or raw materials for processing, assembly, or transformation and subsequently export the finished products. These incentives generally include exemptions from customs duties and related import taxes on raw materials, components, and machinery used in the production process.