Honduras

Honduran resident companies are taxed on a territorial basis. Non-resident companies are subject to Corporate Income Tax (CIT) only on income derived from Honduran sources.

The CIT rate applicable to resident companies is 25% of net taxable income.

Foreign entities providing sea, land, or air transportation services in Honduras are required to determine a net taxable income equivalent to 10% of their total gross income derived from Honduran sources, to which the applicable income tax rate is applied.

Individuals or entities that obtained gross income exceeding one billion Honduran Lempiras (L) in the previous fiscal year are required to pay 1% of such income when the application of the rates established in Section 22 of the Honduran Income Tax Law results in a tax burden lower than 1% of the declared gross income.

This rate is reduced to 0.50% for the following sectors: the production, distribution, or commercialization of cement, steel, and construction-related derivatives (excluding scrap metal sales and mining activities); public services provided by state-owned companies; pharmaceuticals and medicinal products for human use at the producer, importer, or distributor level; and the production, commercialization, or export of coffee.

The Solidarity Contribution is a non-deductible surcharge levied on companies with taxable income exceeding L 1 million. The applicable Solidarity Contribution tax rate is 5%.

Legislation aimed at combating tax evasion and fraud imposes a 1% income tax on gross income of L 100 million or more for taxpayers that incur losses for two consecutive years or two years within a five-year period. The amount paid is creditable against the income tax, surtax, or net asset tax determined in the annual returns, subject to specific exemptions.