Agreement Sar 009-2018 - Progressive Income Tax Scale 2018
Poder Ejecutivo
- Decree: 009-2018
- Published: January 3, 2018
- Issuing body: Poder Ejecutivo
- Category: Financial & Tax
Summary
This agreement adjusts the income brackets for calculating the Income Tax for individuals in 2018, increasing them according to inflation (4.73%). It establishes that income up to L. 152,557.15 is tax-free, and higher incomes pay between 15% and 25% based on income level. It applies from January 2018.
Considerations
Whereas 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 economic capacity of the taxpayer.
Whereas Article 1, first paragraph of the Income Tax Law establishes an annual tax denominated Income Tax, which taxes income derived from capital, labor, or a combination of both, as determined by this Law.
Whereas Article 22, literal b) of the Income Tax Law establishes that natural persons domiciled in Honduras, for the fiscal year 2016 and subsequent periods, shall pay the tax in accordance with the progressive rate scale.
Whereas Article 22, second paragraph of the Income Tax Law establishes that the progressive rate scale shall be adjusted automatically on an annual basis as of 2017 and shall be effected by applying the year-over-year variations of the Consumer Price Index (CPI), published by the Central Bank of Honduras (BCH) of the previous year.
Whereas Press Release No. 1/2018 issued on January 3, 2018 by the Central Bank of Honduras establishes that the Consumer Price Index (CPI) is 4.73%.
Whereas Article 195, first numeral of the Tax Code creates the Tax Administration as a deconcentrated entity of the Office of the President 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 jurisdiction at the national level and domiciled in the Capital of the Republic.
Whereas Article 195, second numeral of the Tax Code establishes that the primary mission of the Tax Administration is to administer the tax system of the Republic of Honduras.
Whereas 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.
Whereas 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.
Whereas by means of Agreement Number 01-2017 the Tax Administration of the State of Honduras is denominated REVENUE ADMINISTRATION SERVICE or by its acronym SAR.
Whereas by means of Agreement Number SAR-1876-2017 the functions and attributions corresponding to the position of Minister Director were delegated to Citizen Angela María Madrid López, in her capacity as Sub-Executive Director of the Revenue Administration Service (SAR), and consequently, the powers to issue this type of acts.
Articles
Ajustar la escala de tasas progresivas para el pago del Impuesto Sobre la Renta para las personas naturales a partir del ejercicio fiscal 2018, conforme a la variación interanual del Índice de Precios al Consumidor (IPC), publicado por el Banco Central de Honduras (BCH), de la siguiente manera: De L 0.01 a L 152,557.15 Exentos De L 152,557.16 a L 232,622.61 15% De L 232,622.62 a L 540,982.82 20% De L 540,982.83 en adelante 25%
Los Agentes de Retención deberán utilizar la tabla anterior para calcular el monto de la Retención mensual que le deben realizar a sus empleados, el cual es aplicable a partir del primero de enero del 2018.
El presente Acuerdo deberá publicarse en el Diario Oficial La Gaceta.
Related laws
- Acuerdo Ministerial No. SAR-009-2018 — Ajuste de la escala de tasas progresivas para el Impuesto Sobre la Renta para personas naturales, ejercicio fiscal 2018 — This agreement adjusts the income brackets for the Income Tax of individuals in Honduras for 2018, automatically increasing them according to inflation (4.73%). It affects all workers and employees who pay this tax. The purpose is to maintain tax fairness by considering the increased cost of living. (Decree SAR-009-2018, 2018)
- Adjustment of Income Tax Payment Rates — This agreement automatically increases income tax rates for individuals in Honduras by applying the 2017 inflation rate (4.73%). It affects all workers and employers, who must apply the new rates starting January 2018 when calculating how much tax to withhold from salaries. (Decree SAR-009-2018, 2018)
- Income Tax Law - Consolidated Text (25-06-2018) — This law establishes an annual income tax that taxes all income from work, capital, or business activities for individuals and companies in Honduras. It applies to residents and foreigners earning income within the country, with rates varying by income type and whether the taxpayer is a natural or legal person, allowing deductions for necessary expenses to generate that income. (Decree 25-1964, 2018)
- Agreement SAR 015-2019 - Progressive Tax Table ISR 2019 — This agreement updates the income tax brackets for Honduran workers in 2019, increasing the amounts to be collected by 4.22% based on inflation reported by the Central Bank. Employers must use this new table to calculate monthly tax withholdings from their employees starting January 1, 2019. (Decree 015-2019, 2019)
- Legislative Decree No. 278-2013 Establishing the Subsidy for Electric Energy Consumers — This law establishes a monthly subsidy of 120 lempiras for residential electricity consumers who use up to 75 kWh. The subsidy benefits low-income households that have historically received state support, reducing the impact of rate increases on their electricity bills. (Decree 278-2013, 2019)