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22 March 2023

Honduran Government to file new tax reform before the National Congress

  • Taxpayers and the general audience will want to closely follow a recently introduced tax bill to determine the impact of the potential tax reforms.

The Honduran Government announced that they will file before the National Congress the “Bill on Tax Justice,” (Bill) which would significantly reform the current tax system. Some of the main provisions of the Bill would:

Add a worldwide income taxation principle that would tax all the local source and foreign source income, obtained by Honduran natural or legal persons, residents or domiciled, originated from the work or capital, or a combination of both

Eliminate bank secrecy for tax and customs purposes

Ratify the Convention on Mutual Administrative Assistance in Tax Matters

Create an Ultimate Beneficial Owner Registry managed by the Tax Authority (in Spanish “Servicio de Administración de Rentas”)

Amend provisions regarding the benefits of 10 different tax exoneration regimes, including the benefits contained in the Law of Free Zones (in Spanish, “Ley de Zonas Libres”, ZOLI); grandfathering provisions for benefits already granted may apply

Create the Development Incentives Regime (in Spanish, “Régimen de Incentivos para el Desarrollo, RINDE) and the Free Trade Zone Regime for new investments.

It is important to note that provisions in the Bill on Tax Justice may undergo changes during the parliamentary process, discussion, and approval of the Bill in the National Congress.

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For additional information with respect to this Alert, please contact the following:

Ernst & Young Honduras, S. de R. L.

Rafael Sayagues | rafael.sayagues@cr.ey.com

Juan Carlos Chavarria | juan-carlos.chavarria@cr.ey.com

Antonio Ruiz | antonio.ruiz@cr.ey.com

Guillermo Leandro | guillermo.leandro@cr.ey.com

Randall Oquendo | randall.oquendo@cr.ey.com

Paola Castro | paola.castro@cr.ey.com

Juan Herrera | juan.herrera@hn.ey.com

Ernst & Young LLP (United States), Latin American Business Center, New York

Lucas Moreno | lucas.moreno1@ey.com

Ana Mingramm | ana.mingramm@ey.com

Pablo Wejcman | pablo.wejcman@ey.com

Enrique Perez Grovas | enrique.perezgrovas@ey.com

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

Raul Moreno, Tokyo | raul.moreno@jp.ey.com

  • Luis Coronado, Singapore | luis.coronado@sg.ey.com

    Document ID: 2023-5347

     
     

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