Reform of Article 7 of Decree 17-2010

To reform Article 7 of Decree No. 17-2010 of April 22, 2010, which contains the LAW FOR THE STRENGTHENING OF REVENUES, SOCIAL EQUITY AND RATIONALIZATION OF PUBLIC SPENDING, and which shall read as follows:

The benefit of tax regularization is granted in accordance with the following conditions: a) Taxpayers who are in arrears or who have not complied with their formal or material obligations with the State as of April 30, 2010, may pay the respective tax and/or rate free of fines, surcharges and interest until December 31, 2010, being able to agree to partial payments during this period. Exceptionally, and in cases duly authorized by the Executive Revenue Directorate (DEI), any direct or indirect tax, and/or appropriate rate, partial payments may be granted without interest until December 31, 2011. Taxpayers who avail themselves of the aforementioned benefit may participate in bidding processes and/or award of contracts for construction, consulting or provision of goods and services; and, b) Natural or legal persons whose gross income has been less than or equal to ONE HUNDRED SIXTY MILLION LEMPIRAS (L.160,000,000.00), who have not been subject to audit processes in which the respective resolution of the adjustments found to the taxpayer has been notified during any of the periods 2005, 2006, 2007 and 2008, may avail themselves of this tax update benefit, having to pay one percent (1%) on gross income obtained. For this purpose, the highest amount reported in any of these periods must be taken as the starting point. The financial sector supervised by the National Banking and Insurance Commission is excepted from this provision. Taxpayers who are in arrears or have omissions in their declarations cannot avail themselves of this benefit. Taxpayers who have amounts pending payment to the Treasury in the fiscal periods mentioned above, prior to availing themselves of the benefit established in this numeral must pay the amounts owed. This benefit takes effect from the effective date of this Decree until December 31, 2010. Taxpayers included in this literal b) shall not be subject to subsequent audit for the periods indicated, for which purpose the Executive Revenue Directorate (DEI) shall issue the respective final release or definitive seal.

This Decree shall enter into force from 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 fourteenth day of the month of October of two thousand ten. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT GLADIS AURORA LÓPEZ CALDERÓN SECRETARY BY ÁNGEL DARÍO BANEGAS LEIVA SECRETARY, BY LAW To the Executive Power. Therefore: Let it be executed. Tegucigalpa, M. D. C., October 29, 2010. PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE FINANCE DEPARTMENT. WILLIAM CHONG WONG Legislative Power DECREE No. 233-2010 The National Congress: WHEREAS: The Honduran people pay for the public lighting service which is not provided by the National Electric Energy Company (ENEE) nor in some areas of our national territory due to lack of lamps in the system. WHEREAS: That in accordance with the Constitutional Law of the National Electric Energy Company (ENEE), among its purposes and attributions is to generate, transmit, distribute and commercialize electric energy at the national level. WHEREAS: That in fulfillment of the tasks assigned to it by the Constitutional Law, is the operation and administration of the facilities under its charge, which obligates the company to have at its disposal technical personnel, equipment, supplies and logistics in general to fulfill this mission at the national level. WHEREAS: That the lack of public lighting creates problems for the Honduran people, causing an increase in the wave of delinquency that plagues our country. THEREFORE: DECREES: