Honduras

Employment income

Compensation includes salary, premiums, living allowances, housing allowances, tax reimbursements, benefits-in-kind, house, car, retirement benefits, and any other compensation-in-kind. There is no concession to a foreign employee.

Individuals with annual compensation of HNL 199,039.47 or less are tax exempt. 

Non-residents are liable only for the applicable withholding taxes (WHTs), depending on the nature of the local income.

Capital gains

Capital gains are taxed at 10%.

The WHT rate on capital gains for non-residents is 4%, which is made by the purchaser. Government offices are required to make a corresponding 10% WHT on capital gains on payments made due to purchase and sale transactions of goods, indemnifications, and purchase of rights and securities.

Dividend income

Individuals are subject to 10% dividend tax.

Exempt income

The following income is tax exempt:

• Income from investment in bonds issued or guaranteed by the government.
• Income from pension funds.