Honduras

The Servicio de Administración de Rentas (SAR) is the tax authority in Honduras and is responsible for the administration of the tax system. Taxpayers may request approval from the SAR regarding direct or indirect taxes (e.g. accelerated depreciation methods on new assets acquired by corporations with monetary activities requiring constant technological update, higher installed production capacity and productive re-conversion processes in order to maintain and strengthen their competitive advantage).

Taxable period

The statutory tax year runs from 1 January through to 31 December. However, taxpayers may apply to use a special tax year by requesting an authorisation from the SAR.

Tax returns

Companies must file a CIT return on 30 April every year.

Payment of tax

Mandatory advance tax payments are payable each quarter, based on the income tax paid for the preceding tax year. Final tax is due with the CIT return on 30 April every year.

Tax audit process

The audit cycle can begin after (i) the date the tax return should have been filed or (ii) sometime after the taxpayer made a request before the tax authority (e.g. tax credit, loss carryforward).

Statute of limitations

The statute of limitations applies both to taxpayers, for purposes of challenging assessments and requesting refunds or payments, and to the tax authorities, for reviewing, assessing, notifying, and collecting taxes. The applicable limitation periods are as follows:

• Four years for taxpayers carrying out operations under the customs regime and five years for taxpayers registered with the tax authorities.
• Seven years in all other cases.

Interruption of the statute of limitations

The limitation periods applicable to the powers and actions of the tax authorities may be interrupted in any of the following circumstances:

• Determination of tax by the tax authority, counted from the day following the notification of the corresponding resolution.
• Notification of judicial collection proceedings, counted from the day following such notification.
• Notification of a resolution confirming assessments, interest, penalties, or fines in liquid and payable amounts, counted from the day following notification.
• Filing of a legal appeal by the taxpayer, counted from the day following the filing date.
• Express acknowledgement of the debt by the taxpayer, counted from the day following such acknowledgement.
• Granting of a payment plan to the taxpayer in accordance with the law, counted from the day following formal approval.
• Initiation of the relevant legal actions, counted from the day following their commencement.

Repeated failure to make full or partial payment by the taxpayer, as defined in the Tax Code, may be considered criminal tax fraud.