Corporate - Taxes on corporate income

Last reviewed - 10 January 2020

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.

Non-resident companies providing sea, land, and aerial transport services are subject to 3% income tax on the annual gross income from Honduran sources in cases where the tax calculation resulting from the application of the CIT rate is less, based on the taxable base established by the corresponding regulation.

Minimum tax

Domiciled companies that have obtained gross income equal to or greater than 300 million Honduran lempiras (HNL) for the 2019 fiscal year will not be subject to the payment of 1.5% minimum tax. The domiciled companies with revenues ranging from HNL 300 million to HNL 600 million will instead be subject to payment of 0.75% minimum tax, and those that exceed HNL 600 million will be subject to payment of 1% minimum tax.

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