Honduras Corporate Income Tax

Corporate income tax

Resident companies pay corporate income tax (ISR) at 25% of net taxable income on a territorial basis, plus a 5% solidarity contribution on taxable income above HNL 1 million. Several minimum-tax and anti-evasion measures can override the regular calculation.

• Standard corporate income tax rate — 25% of net taxable income percent (Ley del Impuesto sobre la Renta (Income Tax Law) — https://taxsummaries.pwc.com/honduras/corporate/taxes-on-corporate-income)
• Solidarity contribution (aportacion solidaria) — 5% surcharge on net taxable income exceeding HNL 1,000,000 (non-deductible); top effective rate 30% percent (Ley del Impuesto sobre la Renta (Income Tax Law) — https://taxsummaries.pwc.com/honduras/corporate/taxes-on-corporate-income)
• Tax base — Net taxable income = Honduran-source gross income less allowable deductions and costs incurred to produce that income (Ley del Impuesto sobre la Renta (Income Tax Law))
• Minimum tax on gross income — 1% of gross income for entities with prior-year gross income exceeding HNL 1,000,000,000, applied when it exceeds the regular ISR percent (Ley del Impuesto sobre la Renta (Income Tax Law) — https://taxsummaries.pwc.com/honduras/corporate/taxes-on-corporate-income)
• Reduced minimum tax (special sectors) — 0.50% of gross income for cement, steel, construction-derivative, pharmaceutical, public-service and coffee production/export activities percent (Ley del Impuesto sobre la Renta (Income Tax Law) — https://taxsummaries.pwc.com/honduras/corporate/taxes-on-corporate-income)
• Anti-evasion measure (loss-making entities) — 1% of gross income for taxpayers with gross income of HNL 100,000,000 or more reporting losses in two consecutive years (or two of five years); creditable against ISR percent (Ley del Impuesto sobre la Renta (Income Tax Law) — https://taxsummaries.pwc.com/honduras/corporate/taxes-on-corporate-income)
• Foreign transport entities deemed base — Net taxable income deemed at 10% of Honduran-source gross income for foreign sea/land/air transport providers percent (Ley del Impuesto sobre la Renta (Income Tax Law) — https://taxsummaries.pwc.com/honduras/corporate/taxes-on-corporate-income)
• Withholding tax on dividends — 10% on dividends and distributions of retained earnings (residents and non-residents) percent (Ley del Impuesto sobre la Renta (Income Tax Law) — https://taxsummaries.pwc.com/honduras/corporate/withholding-taxes)
• Withholding tax on interest (non-resident) — 10% on interest from commercial operations, bonds, securities and obligations percent (Ley del Impuesto sobre la Renta (Income Tax Law) — https://taxsummaries.pwc.com/honduras/corporate/withholding-taxes)
• Withholding tax on royalties (non-resident) — 25% percent (Ley del Impuesto sobre la Renta (Income Tax Law) — https://taxsummaries.pwc.com/honduras/corporate/withholding-taxes)
• Branch profit remittance withholding — 10% on profits transferred from a Honduran branch to its head office percent (Ley del Impuesto sobre la Renta (Income Tax Law) — https://taxsummaries.pwc.com/honduras/corporate/withholding-taxes)
• Annual corporate return filing and payment deadline — 30 April following the close of the tax year ((approx - confirm)) (Ley del Impuesto sobre la Renta (Income Tax Law))
• Advance income tax payments — Quarterly advance payments (pagos a cuenta) are due during the year, credited against the annual ISR liability ((approx - confirm)) (Ley del Impuesto sobre la Renta (Income Tax Law))