Honduras

Honduran resident companies are subject to corporate income tax on income derived from Honduran sources under the country's territorial tax system. Non-resident companies are subject to corporate income tax only on income derived from Honduran sources.

The general corporate income tax rate is 25% of net taxable income.

Foreign entities engaged in sea, land, or air transportation services are deemed to earn net taxable income equal to 10% of their gross income derived from Honduran sources. The applicable corporate income tax rate is then applied to such deemed taxable income.

Entities that reported gross income exceeding HNL 1 billion in the preceding fiscal year are subject to a minimum income tax of 1% of gross income when their corporate income tax liability, calculated under the general rules of the Income Tax Law, is lower than 1% of the gross income declared for the year.

A reduced rate of 0.5% applies to taxpayers engaged in the production, distribution, or commercialisation of cement, steel, and construction-related products (excluding scrap metal sales and mining activities); public services provided by state-owned enterprises; pharmaceuticals and medicinal products for human use at the producer, importer, or distributor level; and the production, commercialisation, or export of coffee.

As an anti-tax evasion measure, taxpayers with gross income of HNL 100 million or more that report tax losses for two consecutive years, or for any two years within a five-year period, are subject to an income tax equal to 1% of gross income. The amount paid may be credited against the corporate income tax, Solidarity Contribution, or net asset tax determined in the corresponding annual tax return, subject to applicable exemptions.