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.
Individuals or entities who have obtained gross income equal to or less than 1 billion Honduran lempiras (HNL) in the previous fiscal period will be subject to the calculation of their income tax according to Section 22 of the Honduran Income Tax Law.
Individuals or entities who have obtained gross income greater HNL 1 billion 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 0.5% 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.
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|