Honduras

Sales tax (ISV) is levied on the sale of goods and the provision of services within Honduran territory.

The general sales tax rate is 15% and applies to most goods and services. Certain goods and services are exempt, including machinery and equipment, basic grains, pharmaceutical products, raw materials used in the production of exempt goods, petroleum products, school supplies, and insecticides, among others.

An 18% rate applies to the importation and sale of beer, alcoholic beverages, cigarettes, and other tobacco products.

A 15% rate applies to certain telecommunications services, including PCS, cellular, broadband Internet, and cable television services, as well as to certain energy services, depending on the level of consumption billed by the service provider.

An 18% sales tax is imposed on first-class and business-class airline tickets.

Customs duties generally range from 0% to 15% for most goods imported into Honduras.

Honduras is a member of the Central American Common Market (CACM), together with Costa Rica, El Salvador, Guatemala, and Nicaragua. As a result, a common tariff system applies to most goods imported from outside the CACM.

Under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), qualifying goods may benefit from preferential tariff treatment, including duty-free access, provided the applicable rules of origin are met. Eligibility for preferential treatment is determined based on the relevant Harmonized System (HS) classification and the applicable tariff elimination schedule.

Ad valorem import duties may reach up to 20% in certain cases. In addition, imports are generally subject to sales tax at rates of 15% or 18%, calculated on the aggregate of the cost, insurance, and freight (CIF) value, applicable customs duties, and customs fees.

The net assets tax is an annual tax imposed at a rate of 1% on the net asset value of resident companies. The tax base is determined based on the gross value of assets less reserves for accounts payable, accumulated depreciation allowed under the Income Tax Law, other deductions permitted by law, and a statutory deduction of HNL 3 million.

The net assets tax applies when the amount of corporate income tax payable is lower than the net assets tax liability.

Resident companies during their pre-operational period, as well as companies operating under free trade zone (FTZ) regimes and certain other exempt entities, are not subject to the net assets tax.

Non-resident companies are not subject to the net assets tax.

Capital gains are generally subject to tax at a rate of 10% on the net gain, regardless of the taxpayer's residence status. Under the ZOLITUR regime, capital gains are subject to a reduced flat tax rate of 4%.

Capital gains tax must generally be paid within ten business days following the date on which the transaction value is determined.

Where the seller is a non-resident, the purchaser is required to withhold 4% of the transaction value as an advance payment of the capital gains tax and remit the amount to the tax authorities within ten days following the transaction. 

When the payer is a government entity, a 10% withholding tax applies to capital gains arising from purchases of goods, indemnifications, and transfers of rights or securities.