Corporate - Withholding taxes

Last reviewed - 10 January 2020

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:

Income source WHT(%)
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
Dividends 10
Royalties 25
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
Insurance premiums 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

Tax treaties

Honduras has not signed any tax treaties with foreign jurisdictions.