WHT for residents
Distribution or payment of dividends or any other form of distribution of retained earnings or reserves to resident or domiciled individuals and/or legal entities is taxed via WHT at 10%.
The tax authority is empowered to withhold 3% on CIF from import operations for commercial purposes as an advance payment to income tax to those companies or individuals not duly registered with the tax authority, not complying with CIT filing, or in liquid arrears for any tax administered by the Servicio de Administracion de Rentas (SAR). There are some exceptions to the rule.
WHT for non-residents
For non-residents in Honduras, any income derived from Honduran sources is taxable under the following table of the Income Tax Law:
|Real estate and movable property rent, except dividends and interest||25|
|Royalties from mining operations and other natural resources||25|
|Salaries paid for services and other remuneration for rendering of services within national territory or abroad||25|
|Profit transfers from branch office to head office||10|
|Interest paid on commercial operations, bonds, securities or negotiable instruments, and other types of obligations||10|
|Income from operation of airplanes, ships, and vehicles||10|
|Income from operation of telecommunication companies||10|
|Income obtained from public shows||25|
|Films and video tapes for cinemas, TV, video clubs, and cable TV||25|
|Any other income not mentioned previously||10|
Honduras has not signed any tax treaties with foreign jurisdictions.