Leyes.HN
Search with AI

Jump to

Support Leyes.HN

Leyes.HN is free for everyone. Your donation helps keep it that way.

Donate
April 16, 2016In force

Exemption for CCG and Palmerola International Airport

Congreso Nacional

  • Decree: 30-2016
  • Published: April 16, 2016
  • Issuing body: Congreso Nacional
  • Gazette: 34,009
  • Category: Financial & Tax
  • Type: Other

Summary

AIThis summary was generated by AI and may contain errors. Always verify against the original law text below. Not legal advice. Learn how we use AI

This law exempts (relieves from paying) taxes and tariffs for private investors who build and operate the Civic Government Center and the Palmerola International Airport. The exemption covers sales taxes, import duties, income tax, and permits for the entire life of these projects, with the goal of reducing costs for the State and citizens who use these public facilities.

Considerations

Whereas by Decree No. 307-2013 of January 13, 2014 and published in the Official Gazette La Gaceta on May 12, 2014, the Trust Contract for the administration of the project called "Governmental Civic Center" was approved; while Decree No. 369-2013 of January 20, 2014 and published in the Official Gazette La Gaceta on March 22, 2014, approved various Public-Private Partnership Contracts through fiduciary instruments.

Whereas Decree No. 278-2013 approved on December 21, 2013, which entered into force as of January 1, 2014, repealed the vast majority of the customs franchises, exemptions and exonerations granted in favor of the three Branches of State, including the Armed Forces, decentralized institutions and state-owned enterprises, leaving in force only those expressly listed in the aforementioned Law.

Whereas certain tax impositions on projects whose final beneficiary is public institutions of the State of Honduras impose financial burdens that increase the prices and costs that the State of Honduras must pay to Private Operating Investors under Public-Private Partnership contracting processes, such as those called "Governmental Civic Center," "Palmerola International Airport," "National Property System," "Information Technologies," "Vehicle Registry, Vehicle Inspection Centers, License Plates and Traffic Fines," among others.

Whereas investments made under public-private partnership modalities, whether in public infrastructure or in services, may be granted to the administration of Private Operating Investors, without these increasing their costs for the State of Honduras or for the citizens who benefit from the aforementioned enabled infrastructure and services, due to tax burdens that increase the cost of projects and the means to finance them.

Whereas projects under public-private partnership constitute investments in infrastructure and management of necessary public services of interest for the country's development, job creation, improvement of quality of life for benefited population and social sectors, long-term public resource savings, and efficiency in the quality of public spending.

Whereas in accordance with Article 7 of the Law for the Promotion of Public-Private Partnership and Article 7 of its Regulation, the State of Honduras may establish firm obligations and commitments that it must deliver to the private party charged to the Public Administration, whether in rights, payments or others of similar nature, by virtue of mitigating project risks and enabling the execution of acts provided in a public-private alliance contract, intended for the execution of projects, works and/or public services.

Amendments

Articles

Article 1.-

Exemption from Taxes and Duties for the Projects of the "GOVERNMENTAL CIVIC CENTER" AND "PALMEROLA INTERNATIONAL AIRPORT": Private Investment Operators and Special Purpose Companies of the projects denominated "Governmental Civic Center" and "Palmerola International Airport" structured under Public-Private Partnership schemes are hereby exempted. For the "Governmental Civic Center" project, exemption is granted from the payment of Import Tariff Rights, Selective Consumption Taxes, Tax on Contributions for the Care of Social Programs and Conservation of Road Patrimony (ACPV) and Sales Tax, in the importation and local purchase of inputs, goods, equipment, materials and services, for the construction, equipping and operation of the aforementioned project; this includes and shall encompass the design, financing, construction, operation, lease to state entities, until the completion of all construction stages, administration, operation, maintenance, repair, replacement of equipment related to the real properties and their appurtenances, and services provided for the operations of state institutions, during the life of the project. For the "Palmerola International Airport" project, exemption is granted from the payment of Import Tariff Rights, Selective Consumption Taxes, Tax on Contributions for the Care of Social Programs and Conservation of Road Patrimony (ACPV) and Sales Tax, in the importation and local purchase of inputs, goods, equipment, materials and services, for the design, financing, construction and equipping of the aforementioned project. The exemption from the same import rights and other taxes shall encompass administration and maintenance during the life of the project. For both projects, exemption from Sales Tax is granted for all services and benefits that during the life of the projects the Private Investment Operators provide to the Trustee of the Trust of the "Governmental Civic Center" and "Palmerola International Airport", as well as to the State of Honduras. For both projects, the exemption from import tariff rights and taxes includes contracts and the acquisition of inputs, goods, equipment, materials and services, related to the aforementioned projects and contracted and acquired by the Private Investment Operators and Exclusive Purpose Companies, from contractors, subcontractors and other suppliers throughout the entire chain of acquisitions of inputs, goods, equipment, materials and services. Not included under the present exemption from taxes and tariff rights are the contractual relationships entered into by the Private Investment Operators and Exclusive Purpose Companies, with natural and legal persons that sell or supply goods and services in favor of governmental institutions and their personnel, as well as persons who occupy, under any title, the facilities of the aforementioned projects, such as: rentals and services to non-governmental persons, food and beverages, photocopiers, parking, entertainment and any other services or sale of goods provided or performed to third parties. Nor shall the contractors of public institutions that are part of the projects enjoy these tax benefits, except those that by special legal provision, so contemplate.

Article 2.-

EXEMPTION FROM INCOME TAX AND OTHER ECONOMIC CHARGES: Exemption is hereby granted, for the entire life of the projects, from Income Tax (Decree No. 25 of December 20, 1963 and its amendments), from Net Asset Tax and Temporary Solidarity Contribution contained in Legislative Decree No. 51-2003 of April 3, 2003 (Tax Equity Law); from the Advance of one percent (1%) in concept of Income Tax, contained in Decree No. 96-2012 of June 20, 2012 (Anti-Evasion Measure Law in Income Tax); from the modality of Income Tax corresponding to 1.5% of declared gross income contained in Article 22-A of the Income Tax Law; from the rates created pursuant to Decree No. 105-2011 of June 24, 2011 and its amendments (Population Security Law); from the rates for payments made to non-resident natural and legal persons; to the Trust of the "Governmental Civic Center", to the Private Investment Operators and Exclusive Purpose Companies of this project and of the "Palmerola International Airport" project. Not included in the present exemption are Capital Gains Tax, Dividend Tax or any other form of profit participation, the Single 10% Tax on Interest on Income contained in Decree No. 110-93 and its amendments; and, the 1% in concept of Advance Income Tax or Asset Tax, whichever is greater, which must be retained from national and foreign suppliers and contractors, pursuant to Article 19 of Decree No. 17-2010 of March 28, 2010 (Law for Strengthening Income, Social Equity and Rationalization of Public Spending). Exemption is granted from rates, surcharges and rights, for construction permits, environmental authorizations and licenses, that are processed before the central and municipal government, to the Trustee of the Trust of the "Governmental Civic Center", to the Private Investment Operators and Special Purpose Companies of this project, as well as from the "GOVERNMENTAL CIVIC CENTER" project to investors, private operators and special purpose companies, and equally to the "PALMEROLA INTERNATIONAL AIRPORT" Project. This exemption from rates shall extend and apply to the renewal or expansion of permits that must be requested during the life of the projects.

Article 3.-

AMENDMENTS TO DECREE No. 143-2010 FOR THE FEASIBILITY OF PUBLIC-PRIVATE PARTNERSHIPS: Amend Articles 5 and 7 of Decree No. 143-2010 of August 11, 2010, published on September 16, 2010, containing the Law for the Promotion of Public-Private Partnership Alliance, which shall be read as follows:

Article 5

FORMS OF ORGANIZATION WITHIN THE PUBLIC-PRIVATE PARTNERSHIP REGIME. The parties, both public and private, within a public-private partnership model, may organize themselves as joint venture, consortiums, legal entities with or without profit motive, participation contracts, management contracts, trusts or any other form or modality, legally typical or atypical, that proves suitable for the execution of works and/or provision of required services. Any form of organization within the Public-Private Partnership regime shall conduct all its operations in accordance with the norms of private law. This is without prejudice that reports requested by the State Department in the Ministry of Finance, the Commission for the Promotion of Public-Private Partnership (COALIANZA) and the Superintendent of Public-Private Partnership (SAPP) must be submitted, regarding the administration of public goods and resources contributed by the State or municipalities.

Article 7

CONTRIBUTION OF PUBLIC ADMINISTRATION. Within the Public-Private Partnership Regime (APP), the State and, as the case may be, municipalities, may assume commitments in a firm manner, provided that such commitments are of certain and known amount and their contributions within the Public-Private Partnership model (APP) which the parties choose can be made by the following means: 1)… 2)… 3)… 4)… 5)… 6)… 7)… 8)… The State and Municipalities…. Projects organized within the public-private partnership regime, pursuant to Article 5 of this Law, shall enjoy the following tax incentives:

  • 1)

    Exemption, for the entire life of the project, from Internal and Customs Taxes, Sales Tax, Selective Consumption Tax and Tariff Rights and other tariffs, rates, surcharges, rights, general and special contributions, administrative services charged by the State, in the importation and local purchase of inputs, goods, equipment, materials, rights and services, that are used in the design, study, financing, development, installation, construction, equipping, administration, repair, replacement and maintenance of the aforementioned projects;

  • 2)

    Exemption from Income Tax (Decree No. 25 of December 20, 1963 and its amendments), from Net Asset Tax and Temporary Solidarity Contribution contained in Legislative Decree 51-2003 (Tax Equity Law) of April 3, 2003; from the Advance of one percent (1%) in concept of Income Tax contained in Decree No. 96-2012 dated June 20, 2012 (Anti-Evasion Measure Law in Income Tax); from the modality of Income Tax corresponding to 1.5% of declared gross income contained in Article 22-A of the Income Tax Law; as well as from all taxes connected to income, exemption that shall be granted only once for the entire life of the project and counted from the date of commencement of operations;

  • 3)

    Exemption from the rates created pursuant to Decree No. 105-2011 of June 24, 2011 and its amendments (Population Security Law), for the entire life of the project;

  • 4)

    Exemption from the Tax on Contributions for the Care of Social Programs and Conservation of Road Patrimony (ACPV);

  • 5)

    Exemption from Income Tax and any of its withholdings on payments of services or fees contracted with foreign natural or legal persons, necessary or indispensable for the studies, installation or implementation, engineering, administration and construction and monitoring of the public-private partnership project, for the life of the project, with the exception of the withholding by way of advance contained in Article 19 of Decree No. 17-2010 dated March 28, 2010 containing the Law for Strengthening Income, Social Equity and Rationalization of Public Spending;

  • 6)

    Exemption from the application of the provisions contained in the Transfer Pricing Regulation Law and its Regulation; and,

  • 7)

    The projects shall enjoy all benefits established in the Customs Law in relation to the importation of machinery and equipment necessary for construction, provision of services and maintenance, during the life of the project. Such machinery and equipment shall be destined solely and exclusively for the public-private partnership project. Not included in the present exemption are Capital Gains Tax, Dividend Tax or any other form of profit participation, the Single 10% Tax on Interest on Income contained in Decree No. 110-93 and its amendments; and, the 1% in concept of Advance Income Tax or Asset Tax, whichever is greater, which must be retained from national and foreign suppliers and contractors, pursuant to Article 19 of Decree No. 17-2010 of March 28, 2010 (Law for Strengthening Income, Social Equity and Rationalization of Public Spending).

Article 4.-

PROCEDURE FOR EXEMPTIONS: Exemption requests shall be submitted by the Private Investment Operators, Concessionaires, Exclusive Purpose Companies or by the aforementioned Trusts and shall be processed through the State Department in the Ministry of Finance (SEFIN), which must incorporate the opinion of the supervisory companies of the operators of each project, in order to ensure that the lists of goods and services to be exempted contain a relation to the aforementioned works and services; procedure and authorization that shall be subject to what is established in Article 28 of the Law of Efficiency in Income and Public Spending. Exemption requests shall be resolved in a single resolution and for the time or period of life that the project lasts, with the exception of Sales Tax exemptions, which must be requested annually or in the frequency that the interested party requires; and may be modified or expanded within the framework of this Decree, at the request of the applicant. Applicants shall not be required to annually submit exemption renewal requests, except for the Sales Tax exemption and the annual submission of the statements and reports requested by the State Department in the Ministry of Finance (SEFIN) and the Tax Administration, to perform their control and verification tasks, as well as to assess the fiscal sacrifice of the authorized exemptions. No institution of the State of Honduras, at the national, regional or municipal level, shall request a resolution, authorization, permit, license or additional waiver to enjoy the tax benefits contained in this Decree. Likewise, the State Department in the Ministry of Finance (SEFIN) shall cancel of its own motion the tax benefits granted in this Decree if improper use or abuse in the enjoyment thereof by the Private Investment Operators is proven to the detriment of the Public Treasury; and shall transfer the case to the Tax Administration so that it may proceed with the liquidation and collection of taxes and rights not collected, plus the administrative, civil and criminal sanctions that legally correspond.

Article 5.-

This Decree shall enter into force as of the day of its publication in the Official Gazette La Gaceta. Given in the city of Tegucigalpa, municipality of the Central District, in the Session Hall of the National Congress, on the seventh day of the month of April of two thousand sixteen. ANTONIO CÉSAR RIVERA CALLEJAS PRESIDENT JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY SARA ISMELA MEDINA GALO SECRETARY To the Executive Power Therefore: Let it be executed. Tegucigalpa, M.D.C., April 15, 2016. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE STATE SECRETARY IN THE DEPARTMENTS OF INFRASTRUCTURE AND PUBLIC SERVICES. ROBERTO ANTONIO ORDOÑEZ

Notes

Loading…