Honduras

Honduran resident companies are subject to CIT on income derived from Honduran sources under the country's territorial tax system. Non-resident companies are subject to CIT only on income derived from Honduran sources.

The general CIT rate is 25% of net taxable income.

Foreign entities engaged in sea, land, or air transportation services are deemed to earn net taxable income equal to 10% of their gross income derived from Honduran sources. The applicable CIT rate is then applied to such deemed taxable income.

Minimum tax

Entities that reported gross income exceeding 1 billion Honduran lempiras (HNL) in the preceding fiscal year are subject to a minimum income tax of 1% of gross income when their CIT liability, calculated under the general rules of the Income Tax Law, is lower than 1% of the gross income declared for the year.

A reduced rate of 0.5% applies to taxpayers engaged in the production, distribution, or commercialisation of cement, steel, and construction-related products (excluding scrap metal sales and mining activities); public services provided by state-owned enterprises; pharmaceuticals and medicinal products for human use at the producer, importer, or distributor level; and the production, commercialisation, or export of coffee.

Solidarity Contribution

The Solidarity Contribution is a non-deductible surtax applicable to entities with taxable income exceeding HNL 1 million. The applicable rate is 5% of the excess taxable income.

Income tax anti-evasion measures

As an anti-tax evasion measure, taxpayers with gross income of HNL 100 million or more that report tax losses for two consecutive years, or for any two years within a five-year period, are subject to an income tax equal to 1% of gross income. The amount paid may be credited against the CIT, Solidarity Contribution, or net asset tax determined in the corresponding annual tax return, subject to applicable exemptions.

Municipal income taxes

Industry, commerce, and services tax

Companies doing business in Honduras are levied the following municipal tax on annual gross income: