Corporate - Taxes on corporate income

Last reviewed - 09 February 2024

Honduran resident companies are taxed on territorial income. Non-resident companies are subject to corporate income tax (CIT) only on income derived from Honduran sources.

The CIT rate for a resident company is 25% of its net taxable income.

Foreign entities providing sea, land, and aerial transport services in Honduras should consider a net taxable income equivalent to 10% of their total Honduran-source gross income in order to apply the correspondent income tax rate.

Minimum tax

Individuals or entities who have obtained gross income greater 1 billion Honduran lempiras (HNL) in the previous fiscal period must pay 1% of the aforementioned income when the application of the indicated rates in Section 22 of the Honduran Income Tax Law are less than 1% of declared gross income.

The rate will be reduced to 0.50% for the following sectors: production, distribution, or commercialisation of cement, steel, and their derivatives for construction, which does not include scrap metal sales or the activity of the mining industry; public services provided by state companies; drugs and pharmaceutical products for human use, at the level of producer, importer, or marketer; and production, commercialisation, or coffee exportations.

Solidarity Contribution

The Solidarity Contribution is a non-deductible surcharge levied on all companies on taxable income over HNL 1 million. The Solidarity Contribution tax rate is 5%.

Income tax anti-evasion measures

A law created in response to tax evasion and fraud establishes payment of an income tax of 1% on gross income equal to or greater than HNL 100 million for all taxpayers who report losses for two years in a row or two out of five. The 1% tax paid will be considered as a credit in the resulting income tax, surtax, or net asset payable in the annual returns. There are some exemptions to the rule.

Municipal income taxes

Industry, commerce, and services tax

Companies doing business in Honduras are levied the following municipal tax on annual gross income:

From (HNL) To (HNL) Range (HNL) Tax per ´000
0 500,000 500,000 0.3
500,001 10,000,000 9,500,000 0.4
10,000,001 20,000,000 10,000,000 0.3
20,000,001 30,000,000 10,000,000 0.2
30,000,001 And over   0.15