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25 April 2024 Honduran Tax Authority issues Agreement on CbCR
On March 19, 2024, the Honduran Tax Authority (SAR) issued Agreement SAR-653-2023, establishing the obligation for certain entities to file Country-by Country Reports (CbCRs) and corresponding notifications. The Agreement establishes that, in accordance with Article 17 of Decree 232-2011, the CbCR is part of the information that must be submitted before the Tax Administration, with the objective of aligning transfer pricing documentation in accordance with Action 13 of the Base Erosion and Profit Shifting (BEPS) Action Plan of the Organisation for Economic Co-operation and Development (OECD). Provisions established in the Agreement apply to taxpayers that are Ultimate Parent Entities (UPEs) or, in some cases, Constituent Entities of a Multinational Group that are residents in Honduras and their consolidated revenue is equal to or greater than €750m or its equivalent in Honduran lempiras, at the exchange rate in force as of January 2015.
When several Constituent Entities of the same Multinational Group are residents for tax purposes in Honduras and one or more of the previously mentioned conditions are met, the Multinational Group must designate one of those Constituent Entities to submit the CbCR. Through a transitory disposition, the provisions set forth in section II above are suspended until the Executive Director of the Tax Administration reestablishes them through a general communication. The legal representative of a Constituent Entity that resides for tax purposes in Honduras must digitally notify the Executive Director of the Tax Administration: (i) if it enjoys the status of UPE or Surrogate Parent Entity; or (ii) to provide the identity and tax residence of the Reporting Entity. The reporting tax year is the fiscal year for which financial and operating results are reflected in the CbCR. The CbCR must be submitted using an XML file. The electronic portal that will be enabled to receive the XML file will be announced through a general communication. The CbCR must be submitted no later than 12 months from the last day of the Multinational Group's Reporting Tax Year. On the other hand, the CbCR notification must be submitted no later than 31 December of the Reporting Tax Year of the Multinational Group. The Agreement will apply to the Reporting Tax Years of Multinational Groups that begin on 1 January 2025. In the case of CbCR notification, non-submission or late submission will be sanctioned in accordance with Article 160 of the Tax Code. For the CbCR, non-submission, providing false or manifestly incomplete/inaccurate data, or late submission will be sanctioned with a penalty of US$10,000, in accordance with the provisions of Paragraph 1 of Article 19 of the law "Ley de Regulación de Precios de Transferencia," for failing to comply with the provisions of Paragraph 1) of Article 18 of the same Law. Finally, the Agreement includes an Annex, which details the information that the CbCR must contain, as well as filing instructions.
Document ID: 2024-0861 | ||||||