Agreement-SAR-022-2021
Poder Ejecutivo
- Decree: SAR-022-2021
- Published: January 14, 2021
- Issuing body: Poder Ejecutivo
- Gazette: 35,487
- Category: Financial & Tax
Summary
This agreement automatically adjusts Honduras' income tax rates for 2021, increasing the exempt income limits and tax brackets based on inflation (4.01%). It benefits workers and income earners by allowing them to keep more money before paying taxes.
Considerations
That in accordance with Article 351 of the Constitution of the Republic, the National Tax System shall be governed by the principles of legality, proportionality, generality and equity according to the economic capacity of the taxpayer.
That Article 1, first paragraph of the Income Tax Law establishes an annual tax called Income Tax, which taxes income from capital, labor or a combination of both, as determined by said Law.
That Article 22, literal b) of the Income Tax Law establishes that natural persons domiciled in Honduras, for the fiscal year 2016 and successive periods shall pay the tax in accordance with the scale of progressive rates.
That Article 22, second paragraph of the Income Tax Law establishes that the scale of progressive rates shall be adjusted automatically on an annual basis starting in 2017 and shall be carried out by applying the year-over-year variations of the Consumer Price Index (CPI), published by the Central Bank of Honduras (BCH) from the previous year.
That Press Release No. 01/2021 issued on January 7, 2021 by the Central Bank of Honduras, establishes that the year-over-year percentage variation of the Consumer Price Index (CPI) for the period 2021-2020 is 4.01%.
That Article 195 numeral 1 of the Tax Code creates the Tax Administration as a decentralized entity of the Presidency of the Republic, with functional, technical, administrative and national security autonomy, with its own legal personality, responsible for the control, verification, inspection and collection of taxes, with authority and competence at the national level and with domicile in the capital of the Republic.
That Article 195 numeral 2 of the Tax Code establishes that the primary mission of the Tax Administration is to administer the tax system of the Republic of Honduras.
That Article 197 numeral first of the Tax Code establishes that the Tax Administration is headed by an Executive Director, appointed by the President of the Republic.
That Article 198 numeral 12 of the Tax Code establishes as an attribution of the Tax Administration to approve agreements for the efficient application of the provisions in tax matters, in accordance with the Tax Code and the Law.
That by means of Executive Agreement Number 01-2017 the Tax Administration of the State of Honduras is named REVENUE ADMINISTRATION SERVICE or with its abbreviations SAR.
Articles
To extend the validity for one more year of the tax benefits contained in Agreements No. 232-2020 and No. 241-2020 published in the "Official Gazette La Gaceta" dated April 21 and May 24, 2020 respectively, only in those provisions derived from Decree No. 33-2020 containing the Law for Aid to the Productive Sector and Workers in the Face of the Effects of the Pandemic Caused by Covid-19 and its reform contained in Decree No. 43-2020 in accordance with the validity of Decree No. 182-2020.
This Agreement shall enter into force as of the date of its approval, and must be published in the Official Gazette "La Gaceta". BE IT COMMUNICATED AND PUBLISHED MARCO ANTONIO MIDENCE MILLA Secretary of State in the Ministry of Finance FANNY LUCIA MARADIAGA VALLECILLO General Secretary Appointment Agreement No. 493-2020 dated November 12, 2020 Revenue Administration Service TAX ADMINISTRATION SERVICE AGREEMENT No. 022-2021 Tegucigalpa, M.D.C., January 8, 2021 THE EXECUTIVE DIRECTOR OF THE REVENUE ADMINISTRATION SERVICE CONSIDERING: That in accordance with Article 351 of the Constitution of the Republic, the National Tax System shall be governed by the principles of legality, proportionality, generality and equity in accordance with the taxpayer's economic capacity. CONSIDERING: That Article 1, first paragraph of the Income Tax Law establishes an annual tax called Income Tax, which taxes income from capital, labor or the combination of both, as determined by said Law. CONSIDERING: That Article 22, subsection b) of the Income Tax Law establishes that natural persons domiciled in Honduras, for the 2016 fiscal year and successive periods shall pay tax in accordance with the progressive rate scale. CONSIDERING: That Article 22, second paragraph of the Income Tax Law establishes that the progressive rate scale shall be adjusted automatically annually starting in 2017 and shall be made by applying the year-over-year variations of the Consumer Price Index (IPC), published by the Central Bank of Honduras (BCH) of the previous year. CONSIDERING: That Press Bulletin No. 01/2021 issued on January 7, 2021 by the Central Bank of Honduras, establishes that the year-over-year percentage variation of the Consumer Price Index (IPC) for the period 2021-2020 is 4.01%. CONSIDERING: That Article 195, numeral 1 of the Tax Code creates the Tax Administration as a decentralized entity of the Presidency of the Republic, with functional, technical, administrative and national security autonomy, with its own legal status, responsible for the control, verification, inspection and collection of taxes, with authority and jurisdiction at the national level and with headquarters in the capital of the Republic. CONSIDERING: That Article 195, numeral 2 of the Tax Code establishes that the primary mission of the Tax Administration is to administer the tax system of the Republic of Honduras. CONSIDERING: That Article 197, first numeral of the Tax Code establishes that the Tax Administration is headed by an Executive Director, appointed by the President of the Republic. CONSIDERING: That Article 198, numeral 12 of the Tax Code establishes as an attribute of the Tax Administration the approval of agreements for the efficient application of tax provisions, in accordance with the Tax Code and the Law. CONSIDERING: That through Executive Agreement Number 01-2017, the Tax Administration of the State of Honduras is named REVENUE ADMINISTRATION SERVICE or with its abbreviations SAR. THEREFORE, the Revenue Administration Service, exercising the powers granted to it by Law and in application of Articles 255, 321 and 351 of the Constitution of the Republic; 9 numeral 2), 10, 15, 29, 30, 47, 56, 196, 197, 198, 199 of the Tax Code; 1 and 22 of the Income Tax Law; Agreement Number 001-2017. AGREES: FIRST: To adjust the progressive rate scale for payment of Income Tax for natural persons as of the 2021 fiscal year by 4.01%, in accordance with the year-over-year variation of the Consumer Price Index (IPC), published by the Central Bank of Honduras (BCH), as follows: SECOND: Withholding Agents must use the previous table to calculate the amount of monthly withholding they must make to their employees, which is applicable as of January 1, 2021. THIRD: This Agreement must be published in the Official Gazette La Gaceta. MIRIAM ESTELA GUZMAN BONILLA EXECUTIVE DIRECTOR CARMEN ALEJANDRA SUAREZ PACHECO GENERAL SECRETARY PROGRESSIVE RATE TABLE 2021 Rate From To Exempt L 0.01 L 172,117.89 15% L 172,117.90 L 262,449.27 20% L 262,449.28 L 610,347.16 25% L 610,347.17 and above
Related laws
- Legislative Decree 373-2013 authorizing the Trust for Energy Generation through Public-Private Partnership — Legislative Decree 373-2013 authorizes a trust agreement between Honduras' state electric company (ENEE) and Banco Atlántida to promote electricity generation projects through public-private partnerships. It enables the design, financing, construction, and operation of power plants using natural gas or other energy sources, allowing private investors to participate in these national energy infrastructure projects. (Decree 373-2013, 2021)
- Acuerdo Ejecutivo — Ampliación de vigencia de beneficios fiscales contenidos en Acuerdos 232-2020 y 241-2020
- Contrato No. SAR-DNAF-022-2021 — Contrato de Servicio de Enlace de Datos e Internet para el SAR (Decree SAR-DNAF-022-2021, 2022)
- Resolución No. SAR-DNAF-022-2021 — Adjudicación de Licitación Pública Nacional LPN-SAR-005-2021 - Item 2.3 Soporte SAN HITACHI (Decree SAR-DNAF-022-2021, 2022)
- Acuerdo del Congreso Nacional No. 6-2022 — Aprobación del Contrato SAR-DNAF-024-2021 de Renovación del Soporte Platinum Microstrategy (Decree 6-2022, 2022)