The tax system in Honduras is based on a territorial concept of income. Citizens and residents are taxed on income earned from worldwide sources. Non-residents are taxed only on income from Honduran sources, and the tax on any type of income paid to a non-resident must be withheld by the payer.
Personal income tax rates*
|Taxable income (HN**)||Tax rate (%)|
40,000 are added for medical expenses
** This table is updated every year in the month of January
Domiciled individuals will be subject to 1.5% tax on gross income equal to or greater than HNL10 million when the progressive income tax for individuals is less.
Municipal income taxes
Companies who have five or more employees have to withhold this tax once every year as follows:
|Taxable income (HNL)||Tax per ´000|