Exempt Base Communication for Income Tax 2019 (9-01-19)
- Decree: 20-2016
- Published: January 9, 2019
- Category: Financial & Tax
- Type: Communication
Summary
Decree 20-2016 automatically adjusts the income tax (ISR) paid by individuals each year based on inflation. For 2019, the tax-exempt threshold increased to L. 198,995.06 annually (equivalent to L. 16,582.92 monthly), which benefits lower-income workers by exempting them from this tax.
Considerations
Legislative Decree No. 20-2016 reformed Article 22 of the Income Tax Law, adjusting the progressive tax rate scale applied by natural persons.
In said reform it is established that the progressive rate scale shall be adjusted automatically on an annual basis beginning in 2017 and shall be applied using the year-over-year variation of the Consumer Price Index (CPI), published by the Central Bank of Honduras (BCH) of the immediately preceding year.
The Tax Administration Service (SAR) through Agreement has set the Income Tax table for natural persons for 2019 considering the year-over-year inflation level which, according to data from the Central Bank of Honduras, as of December 2018 was 4.22%, the progressive tax rate scale for the 2019 fiscal period is as follows: Table: Progressive Income Tax Rate Scale for Period 2019 From L.0.01 To 158,995.06 Exempt L.158,995.07 L.242,439.28 15% L. 242,439.29 L.563,812.29 20% L. 563,812.30 And Above 25%
The amount exempt from Income Tax payment expanded with the allocation of L. 40,000 annually designated for the payment of medical services, indicates that employed persons with a monthly income equivalent to L. 16,582.92 during 2019 shall be exempt from Income Tax payment. The exempt base increased from L. 192,557.15 in 2018 to L. 198,995.06 in 2019, with a net increase of L. 6,437.91.
COHEP considers this matter of utmost importance, since in addition to being relief for the Honduran working class, it allows the Honduran business and employer sector to work in a planned manner and correctly prepare their payroll from the month of January 2019. Tegucigalpa, M.D.C., January 9, 2019
Amendments
- Modified by: Acuerdo Ministerial No. SAR-01-2026 — Ajuste de la escala de tasas progresivas para el Impuesto Sobre la Renta para personas naturales 2026 (Amendment) — articles Artículo 22 literal b) de la Ley del Impuesto Sobre la Renta
Full text
This document is available in Spanish only - English translation not yet available.
CONSEJO HONDUREÑO DE LA EMPRESA PRIVADA COMUNICADO El Consejo Hondureño de la Empresa Privada (COHEP), debido a las consultas que nos han realizado varios de nuestros agremiados y en aras de fomentar el cumplimiento voluntario de las obligaciones materiales y formales de los obligados tributarios, comunica lo siguiente: PRIMERO: El Decreto Legislativo No. 20-2016 reformó el artículo 22 de la Ley de Impuesto sobre la Renta, ajustando la escala progresiva de pago de dicho impuesto que realizan las personas naturales. SEGUNDO: En dicha reforma se establece que la escala de tasas progresivas será ajustada de manera automática en forma anual a partir del año 2017 y se efectuará aplicando la variación interanual del Índice de Precios al Consumidor (IPC), publicado por el Banco Central de Honduras (BCH) del año inmediato anterior. TERCERO: Que el Servicio de Administración de Rentas (SAR) mediante Acuerdo, ha fijado la tabla de ISR para personas naturales para el 2019 considerando el nivel de inflación interanual que, según datos del Banco Central de Honduras, al mes de diciembre de 2018 fue de 4.22%, la escala de tasas progresivas del ISR para el período fiscal 2019, es la siguiente: Tabla: Escala de Tasas Progresivas del ISR para el Período 2019 De L.0.01 Hasta 158,995.06 Exenta L.158,995.07 L.242,439.28 15% L. 242,439.29 L.563,812.29 20% L. 563,812.30 En Adelante 25% CUARTO: El monto exento del pago del ISR ampliado con la partida de L. 40,000 anuales destinada al pago de servicios médicos, indica que las personas ocupadas con un ingreso mensual equivalente a L. 16,582.92 durante el año 2019 estarán exentas del pago del ISR. La base exenta subió de L. 192,557.15 en 2018 a L. 198,995.06 en 2019, con un incremento neto de L6,437.91. QUINTO: El COHEP considera de suma importancia este tema, ya que además de ser un alivio a la clase trabajadora hondureña, permite a las al sector empresarial y empleador hondureño trabajar en forma planificada y elaborar correctamente sus planillas salariales a partir del mes de enero de 2019. Tegucigalpa, M.D.C., 9 de enero de 2019
Related laws
- Resolución No. 1690-2018 — Reconocimiento de Personalidad Jurídica de Sustainable Empowerment Leadership Foundation (SELF) (Decree 1690-2018, 2018)
- Agreement 799-1969 - Income Tax Law Regulation — This regulation establishes the rules for applying the Income Tax in Honduras. It defines who must pay (people with income in the country), which income is taxed, what expenses can be deducted, and how to calculate and pay the tax. It affects businesses, workers, and people with investments that generate profits. (Decree 799-1969, 1969)
- Decree 360-2002 (including Other Decrees from 2002) — This law strengthens tourism in Honduras by creating regulations for the Honduran Tourism Institute and its functions. It establishes a 4% tax on hotels, vehicle rentals, and tourism agencies that businesses must collect and deposit in banks, benefiting national tourism development.
- Decreto No. 37-2022 mediante el cual se autoriza a la Procuraduría General de la República para traspasar el dominio de un bien inmueble a favor de la Corporación Municipal de la Ciudad de La Paz
- Decree 62-2026 — This decree approves Honduras' General Budget for 2026 totaling L444,335 million, with a fiscal deficit of 1.0%. It prioritizes investment in education, health, and infrastructure, allocating L48,229 million (4.4% of GDP) to productive projects. It establishes execution and budget control rules for all public institutions. (Decree 62-2026, 2026)