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April 25, 2024

Honduran Tax Authority issues Agreement on CbCR

  • The Agreement establishes the obligation to file the Country-by-Country Report (CbCR) and corresponding notification.

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.

Obligation to file the CbCR

The following entities will be required to file the CbCR:

  1. Any UPE of a Multinational Group that resides for tax purposes in Honduras
  2. Likewise, a Constituent Entity of a Multinational Group that resides for tax purposes in Honduras, other than the UPE, if one of the following criteria is met:
    1. The UPE of the Multinational Group is not required to file the CbCR in its jurisdiction of tax residence.
    2. The jurisdiction where the UPE is tax resident has a valid international agreement of which Honduras is part, but does not have a competent authority agreement in effect in which Honduras is part at the time the CbCR must be filed for the reporting tax year.
    3. The UPE's jurisdiction of tax residence has made a systemic failure that the Honduran Tax Authority has reported to the constituent entity resident in Honduras for tax purposes.

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.

Tax Administration will communicate the format and means of the notification.

Reporting tax year

The reporting tax year is the fiscal year for which financial and operating results are reflected in the CbCR.

Form and deadline for submission

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.

Effective date

The Agreement will apply to the Reporting Tax Years of Multinational Groups that begin on 1 January 2025.

Penalties and sanctions for noncompliance

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.

* * * * * * * * * *
Contact Information

For additional information concerning this Alert, please contact:

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

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

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