Repeal and Reform of the Law on the Organization of Public Finances
Congreso Nacional
- Decree: 65-2014
- Published: December 31, 2015
- Issuing body: Congreso Nacional
- Category: Financial & Tax
- Type: Other
Summary
This decree eliminates the tax on property value increases (capital gains) and creates a Popular Housing Fund to facilitate home access. It benefits citizens buying properties and the real estate sector, aiming to boost the economy and housing construction in Honduras.
Considerations
Whereas the Constitution of the Republic recognizes Hondurans the right to dignified housing and the promotion of economic growth.
Whereas it is the duty of the National Congress to issue all legislative provisions necessary so that, through the corresponding mechanisms, the State of Honduras contributes positively to the sustained growth of our economy, to address the needs of public housing and self-construction, as well as the regulation of real property. The Presidency of the Republic established a mechanism to make this provision effective through a Regulation approved in Council of State Secretaries, being able to delegate its administration to the Honduran Bank for Production and Housing (BANHPROVID), or an Associated Center in accordance with what is established in the General Law of Public Administration. This fund shall be constituted with at least the equivalent of fifty percent (50%) of the annual collection of the Capital Gains Tax retained by the State and established in this Law.
Whereas the establishment of the Tax on the Increase in Value of Real Property or Capital Gains, affects the construction sector, access to housing and production, these sectors being the fastest ways to stimulate the economic growth that the country demands.
Whereas the Tax on the Increase in Value of Real Property or Capital Gains is a disincentive for the real estate and credit market, as it significantly diminishes the economic capacity of taxpayers to acquire properties or carry out property registration operations on those they own.
Whereas the Tax on the Increase in Value of Real Property or Capital Gains has not been possible to apply since it does not comply with the requirements described in Article 5, numeral 1) of the Tax Code which expressly enunciates the impossible fact or the tax obligation generating fact; taxable base and the passive subjects.
Whereas in accordance with Attribution 1) of Article 205 of the Constitution of the Republic, it is the power of the National Congress to create, decree, interpret, reform and repeal laws.
Articles
This Decree shall enter into force from the day of its publication in the Official Gazette "La Gaceta". Done in the city of Tegucigalpa, municipality of the Central District, in the Session Hall of the National Congress, on the twenty-sixth day of the month of August of two thousand fourteen. MAURICIO OLIVA HERRERA PRESIDENT MARIO ALONSO PEREZ LOPEZ SECRETARY RÓMAN VILLEDA AGUILAR SECRETARY To the Executive Branch. Therefore: Let it be executed. Tegucigalpa, M.D.C., September 22, 2014. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC The Secretary of State in the Office of Finance. WHEREAS: The establishment of the Tax on the Increase in Value of Real Property or Appreciation affects the construction sector, access to housing and production, these sectors being the fastest ways to stimulate the economic growth that the country demands. WHEREAS: The Tax on the Increase in Value of Real Property or Appreciation is a disincentive for the real estate and credit market, since it significantly diminishes the economic capacity of taxpayers to acquire properties or conduct registry operations on properties they own. WHEREAS: The Tax on the Increase in Value of Real Property or Appreciation has not been possible to apply since it does not meet the requirements described in Article 5, numeral 1) of the Tax Code which expressly enunciates the impossible fact or the tax obligation generating fact; taxable base and passive subjects. WHEREAS: In accordance with Attribution 1) of Article 205 of the Constitution of the Republic, it is the power of the National Congress to create, decree, interpret, reform and repeal laws. THEREFORE, IT DECREES:
Repeal Article 11 of Decree No. 278-2013 dated December 21, 2013, containing the Law on the Ordering of Public Finances, Control of Exemptions and Anti-Evasion Measures.
Reform Article 46 of the LAW ON THE ORDERING OF PUBLIC FINANCES, CONTROL OF EXEMPTIONS AND ANTI-EVASION MEASURES, contained in Decree No. 278-2013 dated December 21, 2013, which shall henceforth read as follows: "ARTICLE 46: POPULAR HOUSING AND SELF-CONSTRUCTION FUND. The Popular Housing and Self-Construction Fund is hereby created for
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