globaltaxnews.ey.comSign up for tax alert emailsForwardPrintDownload | ||||||||||||
22 March 2018 Honduran Executive Power submits to Congress a bill to reform 1.5% alternative minimum income tax The Honduran Executive Power recently submitted to Congress a bill (the Bill) to modify the 1.5% alternative minimum income tax (AMT). This proposed reform results from a negotiation between the Government and the private sector. It would benefit small and medium-sized enterprises and favor job creation by increasing over time the threshold amount of annual gross income that triggers the application of the AMT. Under current rules, the AMT applies to resident business entities or individuals with annual gross income in a tax year equal to or greater than 10 million Lempiras (approx. US$420,345). The AMT is calculated by applying a rate of 1.5% to gross income. Entities must apply the ordinary rate of 25% to net taxable income and the alternative minimum tax rate of 1.5% to gross income. The income tax payable is the higher amount resulting from these two calculations. The AMT is reduced to 0.75% of gross income for entities or individuals producing or selling the following products or services: cement production and distribution, public utility services provided by state-owned companies, products and medicines for human use (at the importation and production levels) and bakery-related products.
1 If the Bill is enacted prior to 30 April 2018, which is the deadline to file the annual corporate income tax returns for the tax year-end 2017. 2 The special sectors are the following: (i) cement production and distribution, (ii) public services provided by state-owned companies, (iii) medicines and pharmaceutical products for human use (at the importation, production and commercialization levels), and (iv) the bakery sector.
Document ID: 2018-5448 | ||||||||||||
