Reform No. 89 2015 Law on Municipalities
Congreso Nacional
- Decree: 89-2015
- Published: October 27, 2015
- Issuing body: Congreso Nacional
- Gazette: 33,867
- Category: Municipal
Summary
This reform clarifies that telecommunications companies must pay a municipal tax of 1.8% on their gross income, by May 31st each year. It affects operators of telephone, internet, cable television and similar services in Honduras, and allows municipalities to receive these funds centrally without charging additional fees.
Considerations
Whereas the activity of Telecommunications is carried out by different natural or legal persons authorized by the National Telecommunications Commission (CONATEL), which provides its services in the different Municipalities in accordance with their respective enabling titles.
Whereas there are new actors that, as a result of the need to become more effective in the costs for the provision of telecommunications services, are dedicated to the construction and operation of towers, antennas, and other types of infrastructure intended, among other things, to support equipment or signals for the provision of Telecommunications Services.
Whereas the Law of Municipalities was approved and is contained in Decree No. 134-90, dated November 7, 1990, published in the Official Journal La Gaceta on November 19, 1990; being reformed through Decrees No. 48-91, dated May 7, 1991 and published in the Official Journal La Gaceta on May 23, 1991; Decree No. 55-2012, dated March 12, 2012 and published in the Official Journal La Gaceta on May 22, 2012 and recently by Decree No. 143-2013, dated July 23, 2013, published in the Official Journal La Gaceta on October 4, 2013. A Law within which the Municipal Tax System is framed.
Whereas in accordance with the provisions of Article 351 of the Constitution of the Republic, the National Tax System is based on the principles of legality, proportionality, generality, and equity, in accordance with the economic capacity of the taxpayer, therefore, for the application of these principles, it was approved through Article 75 of the Law of Municipalities and to develop this tax in Articles 81 and 82, in order to define with greater clarity the payments that Telecommunications Services Operators shall make to the Municipalities.
Whereas in accordance with the provisions of Article 12 of the Law of Municipalities, the Commission appointed for this purpose by the National Congress, requested the opinion of the Association of Municipalities of Honduras (AMHON), an entity that on August 12, 2014, expressed itself in favor of the interpretation of Article 75; as well as to reform with the aim of improving the performance and simplifying the administration of the Selective Tax on Telecommunications Services.
Whereas according to the Constitution of the Republic it corresponds exclusively to the National Congress to establish taxes and contributions as well as public charges. And that in accordance with the Attribution 1 of Article 205 of the Constitution of the Republic, it is the power of the National Congress to create, enact, interpret, reform, and repeal laws.
Amendments
- Modifies: Law of Municipalities and Its General Regulations (Amendment) — articles 75, 81, 82
- Modifies: Law of Municipalities and Its General Regulations (Interpretation) — articles 75
Articles
To interpret Article 75 as reformed of the LAW OF MUNICIPALITIES, contained in Decree No. 134-90 dated November 7, 1990, in the sense that the spirit of the reform contained in Decree No. 143-2013 was not intended to repeal the Selective Tax on Telecommunications Services, created by Decree No. 55-2012, dated March 12, 2012; but only the Livestock Tax, leaving intact, in total and full force, the remaining paragraphs of that norm, where such municipal tax is developed, its taxable event and taxable base of the tax obligation and other provisions linked to its creation.
To reform the LAW OF MUNICIPALITIES, contained in Decree No. 134-90, dated November 7, 1990, published in the Official Gazette La Gaceta on November 19 of that same year, specifically reforming Article 75 and, reinstituting Articles 81 and 82 with new wording to develop in these the Selective Tax on Telecommunications Services, which shall be read as follows:
The following have the character of municipal taxes:
- 1)
Real Property;
- 2)
Personal Tax;
- 3)
Industry, Commerce and Services;
- 4)
Extraction and exploitation of resources; and, 5) Selective Tax on Telecommunications Services.
The Selective Tax on Telecommunications Services is applicable to any natural or legal person who, within their activities, engages in operating, exploiting and providing Public Telecommunications Services as Concessionaires. It being understood as Public Telecommunications Services the following services: fixed telephony, carrier service, cellular mobile telephony, personal communications service (PCS), data transmission and communication, internet or access to computer networks and cable subscription television. This tax must be paid no later than May 31 of each year and its taxation shall be calculated by applying a rate of one point eight percent (1.8%) on the gross revenues reported by the Public Telecommunications Services Operators as Concessionaires to the National Telecommunications Commission (CONATEL) for the immediately preceding fiscal period. The following natural and legal persons shall be exempt from the payment of the Selective Tax on Telecommunications Services:
- 1)
Being an operator of Public Telecommunications Services that uses, in any capacity, infrastructure located within the country of a person subject to the payment of this tax;
- 2)
Those dedicated to the exploitation and provision of sound broadcasting service and open television of free reception; and,
- 3)
The revenues of Public Telecommunications Services Operators not derived from the provision of a Public Telecommunications Service. Non-Concessionaire Public Telecommunications Services Operators that provide data transmission and communication services, Internet or access to computer networks and cable subscription television, must make the corresponding payments of the Industry and Commerce and Services tax in the Municipalities where they provide services. It is understood that Concessionaire taxpayers of the Selective Tax on Telecommunications Services shall only pay the Industry and Commerce and Services tax, as well as the operation permit, when they establish in a Municipality offices or direct sales branches to the final consumer. Likewise, they shall be subject to the payment of the construction permit fee and the environmental fee when applicable. This tax covers all modalities of use and deployment of telecommunications infrastructure present and future, as well as the operation of Telecommunications Services and the use of airspace and/or underground space within the geographic limits that form part of the municipal territory; being then completely fulfilled before the respective municipalities, with the exceptions indicated in the preceding paragraph, the obligation to pay fees, tariffs, contribution, royalties or any payment related directly or indirectly with the installation, provision, exploitation and operation of Telecommunications Services. The budget plans for their validity must state the complete content of this Article".
The Association of Municipalities of Honduras (AMHON) shall define through an agreement approved by the Board of Directors of that organization the form of distribution of the Selective Telecommunications Tax and shall send it to the National Telecommunications Commission (CONATEL), which shall prepare and deliver a report to the Association of Municipalities of Honduras (AMHON) no later than May 15 of each year determining the amounts corresponding to payment for each Municipality and (AMHON) shall send the information corresponding to each of the municipalities, so that they proceed to generate payment notices to the different Concessionaire Public Telecommunications Services Operators. Non-Concessionaire Public Telecommunications Services Operators shall make the corresponding payments in accordance with what is established in Article 78 of the Law of Municipalities regarding the Industry and Commerce and Services tax.
As of the entry into force of this Decree, it is prohibited for Municipal Corporations to establish in their budget plans fees, charges, levies, contributions or any payment related directly or indirectly with the installation, provision, exploitation and operation that affect the provision of Telecommunications Services, including any type of poles, towers, antennas, platforms, optical fiber and any infrastructure used for the transmission and reception of voice, video and data, and all types of distinctive signs and logos that are affixed to the equipment and network elements that form part of the telecommunications infrastructure of Concessionaire Public Telecommunications Services Operators by virtue of the provisions established in the preceding articles.
To order the National Telecommunications Commission (CONATEL), to within a term of ten (10) business days, counted from the day following the publication of this Decree, deliver to the Association of Municipalities of Honduras (AMHON) the special report indicating the amounts corresponding to the selective tax on telecommunications services for 2015 to allow the taxpayers of this tax to pay the amounts corresponding to each municipality. The taxes corresponding to the years 2012, 2013 and 2014 must be paid in accordance with the calculations previously made by the National Telecommunications Commission (CONATEL), with the possibility for operators to avail themselves of the benefit of forgiveness of interest, fines and surcharges for late payment derived from their non-compliance. This benefit shall take effect for a term of nine (09) months counted from the date of entry into force of this Decree. It is further understood that if within this term the debtor beneficiaries do not make use of the right established, the debts shall remain confirmed with their interest and surcharges, and must be made effective to the municipal mayoralties through the means that correspond in law.
This Decree shall enter into force as of the day following its publication in the Official Gazette "La Gaceta". Given in the city of Tegucigalpa, Municipality of the Central District, in the Hall of Sessions of the National Congress, on the Twenty-seventh day of the month of August of Two Thousand Fifteen ANTONIO CÉSAR RIVERA CALLEJAS PRESIDENT JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY SARA ISMELA MEDINA GALO SECRETARY To the Executive Branch. Therefore: Let it be executed. Tegucigalpa, M.D.C., September 7, 2015. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE OFFICE OF HUMAN RIGHTS, JUSTICE, GOVERNANCE AND DECENTRALIZATION. RIGOBERTO CHANG CASTILLO
Related laws
- Decreto Legislativo No. 89-2015 — Interpretar y reformar artículos de la Ley de Municipalidades sobre Impuesto Selectivo a Servicios de Telecomunicaciones — This decree clarifies and reforms the municipal tax on telecommunications services. It requires telephone, internet, and cable TV companies to pay 1.8% of their annual income to the municipalities where they operate, by May 31st. It also prohibits municipalities from charging additional fees for telecommunications infrastructure, ensuring companies pay only this selective tax instead of multiple municipal charges. (Decree 89-2015, 2015)
- Decreto Legislativo No. 155-2015 — Ley de Transporte Terrestre de Honduras (Decree 155-2015, 2016)
- Reglamento — Plan de Arbitrios del Municipio de Siguatepeque, Departamento de Comayagua — The Tax Plan of Siguatepeque is a municipal law that establishes the taxes (property taxes, fees, and special contributions) that all residents must pay annually. It defines how the municipality collects funds to finance public services such as garbage collection, drinking water, public lighting, and infrastructure projects that benefit the community.
- Acuerdo Municipal — Plan de Arbitrios Año 2023 - Municipalidad de Siguatepeque — The 2023 Tax Plan for Siguatepeque establishes all taxes, fees, and contributions that residents and merchants of the municipality must pay, including property taxes, business taxes, water service fees, and garbage collection charges. It affects property owners, business owners, and users of municipal services, with the purpose of funding the municipality's administration and public services.
- Resolución No. 822-2015 — Concesión de Personalidad Jurídica a FUNDACIÓN VIVE MEJOR — This resolution grants legal personality to Fundación Vive Mejor, a non-profit organization based in San Pedro Sula. The foundation will build and maintain recreational parks in rural and urban communities as a strategy to prevent crime and promote community integration, and must report its activities and finances annually to the State. (Decree 822-2015, 2015)