Reform of Article 31. Decree 124-2013. Law on Equity and Efficiency in Public Revenue and Expenditure
Congreso Nacional
- Decree: 210-2012
- Published: June 25, 2013
- Issuing body: Congreso Nacional
- Gazette: 33,159
- Category: Financial & Tax
Summary
This law reforms the rules for export companies with tax benefits, allowing them to sell part of their production in the domestic market (up to 50% for re-exporters) while paying corresponding taxes. It also authorizes these companies to donate to the public sector and establishes penalties if they sell more domestically than abroad, with exceptions for strategic national projects.
Considerations
Whereas the creation of laws containing the different Special Export Regimes responds to the country's need to attract investment and generate massive employment, taking advantage of the human resources the country possesses, as well as the strategic nature of its geographical position.
Whereas the Free Zones Law constitutes one of the legal instruments whose creation has generated national and foreign investment, massive employment and generation of foreign exchange, contributing significantly to the economic and social development of Honduras.
Whereas the opening of markets contained in the different trade agreements in force requires, in laws providing incentives for exports, clear provisions that make commercial relations viable and whose content does not constitute barriers to trade, respecting, of course, the tax provisions that in accordance with the legal framework must be observed.
Whereas it is of national interest to establish and determine the mechanisms for strengthening tax revenues in the most effective, efficient, transparent and controlled manner to improve collection and thereby address the urgent demands of the most vulnerable sectors of society.
Whereas in accordance with Article 205, Attribution 1) of Decree 131 dated January 11, 1982, Decree of the National Constituent Assembly containing the Constitution of the Republic, it is the competence of the National Congress to create, decree, interpret, reform and repeal laws.
Articles
To amend Article 31 of the LAW OF EFFICIENCY IN INCOME AND PUBLIC EXPENDITURE, approved by Decree 113-2011 dated June 24, 2011 and published in the Official Gazette La Gaceta on July 8, 2011, which shall be read as follows:
AUTHORIZATION. Companies benefiting from special tax regimes created by Law as incentives for exports may carry out activities intended for sale in the national market of all or part of their production, except in the case of commercial companies primarily engaged in re-exportation, which may only allocate to the national market up to fifty percent (50%) of their sales; the importer being required to pay the respective taxes in accordance with the tax regime in effect on the date of acceptance of the Single Customs Declaration (DUA), it being the responsibility of the Customs Authority to verify the same in accordance with the risk analysis methodology or other control mechanisms that the Executive Revenue Authority (DEI) may determine. The importer shall also be subject to the payment of Income Tax including other internal and Municipal taxes as applicable. Entities benefiting from special export incentive regimes may make donations to public sector entities in accordance with the Regulation that the Executive Revenue Authority (DEI) shall issue for such purpose.
For purposes of safeguarding the spirit and objectives of the Laws of export incentives, when the Executive Revenue Authority (DEI) and/or the Department of State in the Ministries of Industry and Commerce (SIC), in exercise of their powers and competencies determine that companies benefiting from special tax regimes created by Law have allocated for sale in the national market a percentage higher than that allocated to the external market, they shall, for such amount not sold to the national market, be subject to the payment of Income Tax including other internal and Municipal taxes as applicable. Excepted from the above provision are those companies that, operating under special tax regimes of export incentives, sell their production to national strategic infrastructure projects, solely for the duration of the execution of the work, subject to prior qualification by the Department of State in the Ministries of Industry and Commerce (SIC), provided that: there is no local production, it is of critical impact on the development of the aforementioned projects, it generates significant savings of foreign currency from imports, promotes job creation, generation of national added value, attraction of investment in highly specialized productive sectors, and the creation of an industrial base in the national economy.
To repeal Literal d) of Article 1 of Decree No. 59-93 of March 31, one thousand nine hundred ninety-three, in effect as of April 1, one thousand nine hundred ninety-three.
This Decree shall enter into force as of 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 thirteenth day of the month of June of two thousand thirteen. JUAN RAMÓN VELÁSQUEZ NÁZAR PRESIDENT RIGOBERTO CHANG CASTILLO SECRETARY ELISEO NOEL MEJÍA CASTILLO SECRETARY To the Executive Branch. Therefore: Let it be executed. Tegucigalpa, M.D.C., June 21, 2013. PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC The Secretary of State in the Ministry of Finance. EVELYN LIZETH BAUTISTA GUEVARA
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