Bank Accounts website
Flag Theory website
We are not currently operating in this jurisdiction.
For a full list of countries where we operate, please click below.

Honduras

Taxes

If you want to do business in Honduras, reading this will help you becoming knowlegeable on the specific tax laws and rates for a LLC(Sderl) which is the most common company structure in Honduras.

Honduras taxes income accrued abroad in the same way that income earned within the territory. The highest estimated tax rate for offshore income, from our research, and this is not personal tax advice, is 26.28%. Honduras doesn't have known exemptions to transfer in income earned abroad made internationally. Companies in Honduras are subject to a Corporate Income Tax of 25% plus a surcharge of 5% on companies with taxable income over HNL 1m, and a municipal industry, commerce and service regressive tax from 0.03% to 0.015%. Resulting a highest effective tax rate of 26.28%. This ranks Honduras as 126th overall with regards to corp. taxation rate internationally.

The value added tax (VAT) rate in Honduras is 15.00%, that ranks Honduras as 79th overall with regards to VAT globally. In terms of other taxation, an employee will contribute 5% to the equivalent of a social security fund. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 93hours. Contributing to this is the number of yearly labor tax payments, which is 1 in HN.

Thin capitalisation mandates are not in effect. Thin capitalisation refers to any type of requirements on a business and the debt-to-asset ratios. Dividends paid by resident entities to other resident entities are subject to a final withholding tax of 10%. Dividends are distributions of company profits, voted by the board, to a particular class of shareholders. Dividends can be either shares of stock, cash payments, or other property. Capital Gains are taxed separately from CIT and subject to a Capital Gains tax of 10%. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 10%. Which means that the tax authorities expects legal entities to pay tax on at least 10% of interest payments to non-residents. The dividends withholding rate is 10%. This should be interpreted that usually the tax authorities expects companies to pay tax on at least 10% of payments abroad on dividends. The royalties withholding tax rate is 25%. This means that the tax authorities expects LLCs to automatically withhold 25% of money remitted abroad on royalties.
There is no known tax on wealth in Honduras. There are no known inheritance taxes in HN. There are real estate and transfer taxes. There are not many popular and well known research and development tax relief in Honduras.

The above is not tax or legal advice for your individual circumstances. We can refer you to a tax advisor in Honduras who can properly advise you. Contact us today. Click incorporate now if you are in a hurry, or press the free consultation button above.

Country details

Honduras
HNL
Tegucigalpa
North America
Spanish (Honduras)
7,989,415

Tax treaties

Country Type Date Signed
Costa Rica TIEA 2006-04-26
El Salvador TIEA 2006-04-25
Guatemala TIEA 2006-04-25
United States TIEA 1990-09-27

Tax treaties Map

>

Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

Newsletter

Flag Theory is an internationalization and offshore solutions provider, and the creator of incorporations.io. We offer expert consultation advice and assistance.

Your privacy is important for us and we will keep your information secure. View our privacy policy

View past newsletters

Consultation with

Flag Theory is an internationalization and offshore solutions provider, and the creator of incorporations.io

In order to better serve you, we ask that you please fill out the following form as accurately as you can and provide as many details as possible. Thank you.

Your privacy is important for us and we will keep your information secure. View our privacy policy