Reform to the Income Tax Law on Benefits for Senior Citizens (04-06-2020)
Congreso Nacional
- Decree: 59-2020
- Published: June 4, 2020
- Issuing body: Congreso Nacional
- Gazette: 35,273
- Category: Financial & Tax
Summary
This law benefits Hondurans over 65 years old with gross income up to L. 350,000 annually by exempting them from income tax without requiring administrative procedures. It also doubles their annual tax deductions from L. 40,000 to L. 80,000, improving their economic capacity and fulfilling constitutional protection for seniors.
Considerations
Whereas the application of the benefit contained in Article 14 of the Law of Financial Equilibrium and Social Protection, contained in Decree No. 194-2002, in favor of older adults consists of an exemption that requires an authorizing administrative procedure so that persons over sixty-five (65) years of age may obtain said benefit, which has made it difficult for them to obtain such benefit proportionally.
Whereas Article 351 of the Constitution of the Republic establishes that "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 it is necessary to implement relief measures to improve the quality of life of Hondurans and Honduran women over sixty-five (65) years of age, deriving many of these measures in tax benefits that adjust to the current economic reality of Hondurans, for which it is necessary to adapt tax norms to the current situation of citizens.
Whereas in accordance with Article 205 Attribution 1) of the Constitution of the Republic, it corresponds to the National Congress: to create, enact, interpret, reform and repeal laws.
Amendments
- Modifies: Transfer Pricing - CCIC (Amendment) — articles Artículo 13, literal a) de la Ley del Impuesto sobre la Renta
Articles
To amend by addition subsection a) of Article 13 of the INCOME TAX LAW, contained in Decree Law No. 25 dated December 20, 1963, and its amendments, through the addition of a final paragraph, which shall read as follows: "ARTICLE 13. From the taxable income of a natural person, the following deductions shall be accepted:
- a)
The annual sum of up to FORTY THOUSAND LEMPIRAS (L.40,000.00) ….. In the case of persons over sixty-five (65) years of age, the annual sum for the taxpayer's expenses and fees for services rendered to such person, to which the preceding paragraph refers, the sum shall be up to EIGHTY THOUSAND LEMPIRAS (L 80,000.00).
- b)
The expenses….
- c)
In the case… d) Donations… Payments for the concepts …".
To amend Article 14 of the LAW ON FINANCIAL BALANCE AND SOCIAL PROTECTION, contained in Decree No. 194-2002, dated May 15, 2002 and published in the Official Journal "La Gaceta" dated June 2002, Edition No. 29,799, which shall read as follows:
Persons over sixty-five (65) years of age, with a gross income of up to THREE HUNDRED FIFTY THOUSAND LEMPIRAS (L. 350,000.00), are exempt from payment of this tax as of the effective date of this Decree, without need to present any proof or submit to authorizing administrative procedures or additional processing before the State Tax Administration System; taxpayers being able to apply the benefit of exemption of full right as of the fiscal period in which they complete sixty-five (65) years of life. The Tax Administration shall ex officio ensure compliance with the benefit described above, and must make the corresponding technological adjustments in the computer systems. For the application of this provision, interest and capital gains that are subject to taxes in accordance with Article 10, second paragraph of the Income Tax Law (ISR); and Article 9 of the Tax Simplification Law contained in Decree No. 110-93 of July 20, 1993, are excluded from the gross income. In the event that natural persons benefiting from this exemption have suffered withholdings on the income they receive for the concept of salaries or wages or professional fees, such withholdings shall be refunded to them following the procedure established by the Secretary of State in the Office of Finance (SEFIN)".
This Decree shall enter into force as of the day of its publication in the Official Journal "La Gaceta". Given in the city of Tegucigalpa, municipality of the Central District, celebrated virtually, on the twenty-first day of the month of May of two thousand twenty. MAURICIO OLIVA HERRERA PRESIDENT JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY ROSSEL RENÁN INESTROSA MARTÍNEZ SECRETARY To the Executive Branch Therefore: Let it be executed. TEGUCIGALPA, M.D.C., June 4, 2020. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE OFFICE OF FINANCE ROCIO IZABEL TÁBORA
Related laws
- 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 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)
- Legislative Decree No. 85-2026 — Approval of Contracts Executed by the Municipal Corporation of the Central District Related to Road Infrastructure Works (Decree 85-2026, 2026)
- Decreto Legislativo No. 63-2026 — Aprobación de modificaciones a contratos estratégicos de infraestructura del Distrito Central (Decree 63-2026, 2026)
- Acuerdo Legislativo — Aprobación de Contrato No. 0459/GLA/AMDC/2021 - Rehabilitación de Carpeta Existente Bulevar Fuerzas Armadas — Congress approves a contract for L. 208,248,800.59 between the Municipality of Central District and ECO construction company to rehabilitate and expand Boulevard Armed Forces in three sections, including road resurfacing, lane expansion, drainage, and bridges. The work must be completed in 300 calendar days, with penalties for delays and performance guarantees required.