Honduras flag Honduras:

Presentation of Honduras : Taxation

Value-added tax (VAT) - Impuesto sobre ventas (local name)
15% on goods and services.
18% for alcohol, cigarettes, and first, executive and business class air travel.
Exempt items include: goods that form part of the average weekly shopping; pharmaceutical products; cleaning fluids and disinfectants; raw materials and tools for agricultural and agro-industrial production; major and minor poultry species and fish, herbicides, insecticides, pesticides, rodenticides and other anti-rodents, live animals; means of animal reproduction; seed and vegetative material for the sowing and sexual and asexual spreading; raw material for the elaboration of balanced food in its final presentation, except that destined for pets; transfer of assets in a merger or liquidation; medical services; personal insurance and reinsurance; gasoline, kerosene and related oil products; firewood and coal; books and newspapers; leather, except fine leather goods; water and electrical services; education; passenger transport; financial services.
Company Tax :
Corporate tax: 25%
Social security surtax (in addition to the corporate income tax): 5% on net taxable income above HNL 1 million
Alternative minimum tax: 1% of income above HNL1 billon (only if the alternative minimum tax is higher than the regular income tax)
The rate is reduced to 0.5% for entities in the following sectors or industries: production, distribution, or commercialization of cement, steel, and steel derivatives for construction (this does not include the sale of scrap or mining industry activities); public services provided by state companies; medicines and pharmaceutical products for human use, at the producer, importer, or retailer level; bakery; and the production, commercialization, or export of coffee.
Withholding Taxes :
Dividends: 10%, Interests: 10%, Royalties: 0 (residents)/25% (non-residents)
Social Security Contributions Paid By Employers :
10% (8.5% for state welfare and 1.5% for the private contribution regime).
Other Domestic Resources
Fiscal Administration Services
Overview of Honduras' tax measures in response to Covid-19
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
 

Country Comparison For Corporate Taxation

  Honduras Latin America & Caribbean United States Germany
Number of Payments of Taxes per Year 59.0 28.2 10.6 9.0
Time Taken For Administrative Formalities (Hours) 203.0 327.5 175.0 218.0
Total Share of Taxes (% of Profit) 39.1 46.8 36.6 48.8

Source: Doing Business - Latest available data.

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Latest Update: May 2022