Agreement 362-2022

PURPOSE. To regulate the provisions contained in Legislative Decree No. 48-2022, which contains the Law for the Recovery and Economic Reactivation of Micro and Small Enterprises published in the Official Gazette "La Gaceta" on May 26, 2022.

SCOPE OF APPLICATION. The norms contained in this Regulation shall apply throughout the National Territory for all Micro and Small Enterprises that benefit from the Law for the Recovery and Economic Reactivation of Micro and Small Enterprises.

DEFINITIONS. For the purposes of the application of this Regulation, the following terms are defined: 1. TERTIARY ECONOMIC ACTIVITIES REGULATED BY THE STATE: These are activities that depend on a governmental institution to operate, and must be governed by the processes or guidelines that these require, including financial services, mineral extraction, security services, exploitation of natural resources, cargo and passenger transportation services, and tourist services such as tour operators and travel agencies. 2. AMORTIZATION: The recording of the deterioration of assets that deteriorate through their use in the development of economic activity. 3. ADVANCE OF ONE PERCENT (1%) AS INCOME TAX: Constitutes a credit in the Annual Declaration to be applied either to Income Tax, Net Assets Tax, or Temporary Solidarity Contribution. 4. SOLIDARITY CONTRIBUTION: Constitutes a surtax on Income Tax, therefore it shall not be deductible from said tax and shall be subject to the Installment Payment System, annual declaration. 5. BENEFICIARY: A person who receives the benefits contained in the Law for the Recovery and Economic Reactivation of Micro and Small Enterprises. 6. BENEFICIARY CERTIFICATE: The document that certifies the enjoyment of benefits protected under the Law for the Recovery and Economic Reactivation of Micro and Small Enterprises. 7. MERCHANTS: As provided in Article 2 of the Commercial Code, natural persons who own a commercial enterprise and corporations constituted in commercial form. 8. DEPRECIATION: The recognition of the deterioration of fixed assets in the taxable income of an Income Tax contributor. 9. EXEMPTION: All those provisions approved by the National Congress that release in whole or in part the payment of tax obligations. 10. FORMALIZATION: The procedure by which Micro and Small Enterprises are constituted and registered in the commercial registry of the Property Institute and in the associated centers of the commercial registry of the Chamber of Commerce, complying with the requirements established in the Law for the Recovery and Economic Reactivation of Micro and Small Enterprises. 11. IHSS: Honduran Institute of Social Security. 12. NET ASSETS TAX: Net Total Assets shall be understood as the difference resulting from the value of assets appearing in the Balance Sheet of the contributor, minus the reserves or provisions for accounts receivable, accumulated depreciation allowed by the Income Tax Law, asset revaluations as long as they have not been disposed of, that is, as long as this capital reserve has not been used to increase capital or declare dividends, and the values corresponding to investment expansions registered as projects in process of fixed assets (personal and real property) that are not in operation. The balance of obligations documented or authorized with partners or third parties or with financial institutions directly related to the financing of fixed assets in operation shall also be deducted. 13. TAX ON INDUSTRIES, COMMERCE AND MUNICIPAL SERVICES: It is a monthly tax that falls on the annual income generated by production activities, sales of merchandise, or provision of services. All natural or legal persons, private or public, who engage in a continuous and systematic manner in the development of one of the aforementioned activities for profit purposes are subject to this tax. 14. INCOME TAX: A tax that levies on income derived from capital, labor, or a combination of both. 15. INCOME: Any kind of return, profit, gain, income, interest, product, benefit, participation, wage, daily wage, fee, and in general, any receipt in cash, securities, kind, or credit that modifies the contributor's patrimony is considered income. 16. GROSS INCOME: Total income minus discounts, rebates, and returns. 17. IP: Property Institute. 18. LAW: Law for the Recovery and Economic Reactivation of Micro and Small Enterprises. 19. MYPE: Micro and Small Enterprises. 20. MY BUSINESS ONLINE PORTAL: Virtual tool for the establishment of commercial enterprises. 21. INDEPENDENT PROFESSIONALS: Natural persons who perform work or provide services in the liberal exercise of a profession when there is no relationship of economic dependence between the parties and who freely set their compensation, such as: doctors, dentists, lawyers, certified public accountants, among others. 22. REGISTER OF EXEMPTED PARTIES: The Register administered by the State Secretariat of Finance through the General Directorate of Control of Customs Franchises, in which beneficiaries of exemptions and exonerations are registered, as applicable within the applicable legal framework. 23. COMMERCIAL REGISTRY: The place where the registration of Public Deed or Corporate Contracts takes place. 24. RTN: National Tax Registry. 25. SAR: Tax Administration Service. 26. SDE: State Secretariat of Economic Development. 27. SEFIN: State Secretariat of Finance. 28. SENPRENDRE: National Service for Entrepreneurship and Small Businesses, which for the purposes of applying the Law and Regulation shall act through the Formalization Subdirectorate. 29. MUNICIPAL TAX: A contribution for the effective provision of a public service by a natural or legal person. 30. REGISTRATION FEE: Administrative payments for the registration of a public deed or corporate contract in the Commercial Registry. 31. USER: A person who regularly uses a service. CHAPTER II OF THE BENEFICIARIES AND ENJOYMENT OF TAX BENEFITS

BENEFICIARIES. Beneficiaries are natural and legal persons categorized as Micro and Small Enterprises:

• a)

  Micro and Small Enterprises (MYPE) that are established under the Law for the Recovery and Economic Reactivation of Micro and Small Enterprises.

• b)

  Micro and Small Enterprises (MYPE) that have been operating informally and decide to establish themselves legally.

• c)

  Micro and Small Enterprises (MYPE) that have been legally established and have operated within the five (5) years prior to the entry into force of the Law for the Recovery and Economic Reactivation of Micro and Small Enterprises, provided that they comply with the requirements of Article 8 of the Law.

TAX BENEFITS FOR SUBSECTIONS a) and b) described in Article 4 of this Regulation. The beneficiaries of the exemption in subsections a) and b) of the preceding Article enjoy the following tax benefits: 1. Income Tax during five (5) fiscal periods from their establishment and registration in the Mercantile Registry and Chamber of Commerce. 2. Net Assets, Temporary Solidarity Contribution, Advance of 1% and 12.5% as Income Tax in 100% during five (5) years from their establishment and registration. 3. Depreciation and amortization during the first three (3) years of operation, which shall begin to be accounted for as of the fourth (4) year. 4. Tax on Industry, Commerce and Services of any Municipality for the first three years.

BENEFICIARIES. The following are beneficiaries:

• a)

  Micro and Small Enterprises (MYPE) established under the Law for the Recovery and Economic Reactivation of Micro and Small Enterprises.

• b)

  Micro and Small Enterprises (MYPE) that have been operating informally.

• c)

  Micro and Small Enterprises (MYPE) that have been legally established and have operated within the five (5) years prior to the entry into force of the Law for the Recovery and Economic Reactivation of Micro and Small Enterprises, provided that they comply with Article 8.

TAX BENEFITS FOR ITEMS a) AND b) DESCRIBED IN ARTICLE 4 OF THIS REGULATION. × ȌȌÀǡǣ 1. (5) × × Ó 100% Ó 100% Ó 100% Ó 50% Ó 50%

(3) tax periods from its constitution and registration. 5. Non-tax rates, surtaxes and fees, for operation permits, construction, authorizations and environmental licenses. 6. Registration charges of any kind that are processed before the Central Government and Municipalities for the first three (3) tax periods from constitution and registration. 7. Exemption from payment for renewal of rates and permits that must be requested during the period of validity of the benefit, established in the "Beneficiary Certificate" that will be issued by SENPRENDE. 8. Registry rates related to the act of constitution of companies, municipal rates, charges for the issuance of administrative acts, licenses or other concepts necessary for its operation, that must be carried out before public institutions.

TAX BENEFITS FOR ITEM c) DESCRIBED IN ARTICLE 4 OF THIS REGULATION. Micro and Small Enterprises already constituted and in operation prior to the effectiveness of the Law, enjoy the following benefits: 1. Income Tax for two (2) tax periods 2. Net Assets, Temporary Solidarity Contribution, Advance of 1% and 12.5% as Income Tax at 50% for two (2) years. 3. Tax on Industry, Commerce and Services of any Municipality for the first two (2) tax periods from its constitution and registration. 4. Non-tax rates, surtaxes and fees, for operation permits, construction, authorizations and environmental licenses, registration charges of any kind that are processed before the Central Government and Municipalities for the first two (2) tax periods from the issuance of the "Beneficiary Certificate" that will be issued by SENPRENDE. 5. Exemption from payment for renewal of rates and permits that must be requested during the period of validity of the benefit, established in the "Beneficiary Certificate" that will be issued by SENPRENDE.

REQUIREMENTS FOR THE ENJOYMENT OF THE BENEFIT CONTAINED IN ARTICLE 6 OF THIS REGULATION: Micro and Small Enterprises already constituted and in operation prior to the effectiveness of the Law, for the enjoyment of the benefits described in Article 6 of this Regulation, must accredit the following requirements:

• 1)

  The investment or reinvestment of capital, expansion of operations or any increase in industrial, productive, commercial or service activities, which they prove reliably before the SDE, that after the entry into force of this Law has increased by a minimum of twenty percent (20%) the generation of new paid jobs, comparable against the current payroll of paid employees as of December 31, 2021;

• 2)

  For the application of the benefit, the company must provide proof of the last payroll registered with the IHSS;

• 3)

  Accredit before the SDE, within three (3) months counted from the issuance of the "Beneficiary Certificate", the increase in job positions in accordance with the payroll registered with the IHSS.

PERIOD TO AVAIL ONESELF OF TAX BENEFITS. The period to avail oneself of the tax benefits of the Law shall be twelve (12) months counted from the date of entry into force of the Law. PRESIDENCY OF THE REPUBLIC SECRETARY OF FINANCE The tax benefits for those described in literal c) of Article 4 of this Regulation shall be the following: 1. (2) 2. at 1% to 12.5% at 50% (2) The. 3. (2). 4. (3). 5. From the issuance of the "Beneficiary Certificate" that will be issued by SENPRENDE. 6. (3) The. 7. The "Beneficiary Certificate". 8. The tax benefits for those described in literal c) of Article 4 of this Regulation shall be the following: 1. (2) 2. at 1% to 12.5% at 50% (2) The. 3. (2). 4. From the issuance of the "Beneficiary Certificate" that will be issued by SENPRENDE. 5. The "Beneficiary Certificate".

TAX BENEFITS FOR LITERAL c) described in Article 4 of this Regulation. The tax benefits for those described in literal c) shall be the following: 1. (2) 2. at 1% to 12.5% 50% (2) The. 3. from the issuance of the "Beneficiary Certificate" that will be issued by SENPRENDE. 4. (2). 5. The "Beneficiary Certificate".

REQUIREMENTS FOR THE ENJOYMENT OF THE BENEFIT CONTAINED IN THE 50% 50%

COMMENCEMENT OF ENJOYMENT OF TAX BENEFITS. Micro and Small Enterprises covered under the Law shall enjoy the benefits as of the issuance of the "Beneficiary Certificate" issued by SENPRENDE. CHAPTER III ON EXCEPTIONS TO THE ENJOYMENT OF TAX BENEFITS

EXCEPTIONS. The tax benefits contained in Article 4 of this regulation shall not be enjoyed by:

• 1)

  Services provided by independent professionals;

• 2)

  Legal entities that develop the following tertiary economic activities: financial services, mineral extraction, security services, exploitation of natural resources, cargo and passenger transportation services, and tourist services such as tour operators and travel agencies, regulated by the State of Honduras;

• 3)

  Legal entities that have partners, shareholders or social participants, or natural persons who are already part of another commercial company engaged in an equal activity or who have been part of another commercial company engaged in a similar activity, within the three (3) years prior to the effective date of the Law;

• 4)

  Micro or Small Enterprises (MYPE) that include legal entities within their social participation, regardless of their category; and legal entities that include within their social organization in the capacity of partner, shareholder or social participant natural persons who have been partners, shareholders or social participants of a legal entity engaged in a similar activity and has been dissolved, liquidated or closed its operations as of the effective date of the Law;

• 5)

  Micro and Small Enterprises (MYPE) that obtain a gross annual income greater than twelve million Honduran Lempiras in the previous fiscal year;

• 6)

  Micro or Small Enterprises (MYPE) that are enjoying the benefits of Legislative Decree No. 145-2018 containing the Law of Support for Micro and Small Enterprises and have the "Beneficiary Certificate" and certificate of exemption registration;

• 7)

  Persons covered under special regimes, in accordance with the provisions of Article 33 of the Law of Efficiency in Income and Public Expenditure contained in Decree No. 113-2011 published in the Official Gazette La Gaceta dated July 8, 2011 and Article 17 of the Law of Fiscal Responsibility contained in Decree No. 25-2016 published in the Official Gazette La Gaceta dated May 4, 2016. CHAPTER IV OF THE BENEFICIARY CERTIFICATE

CERTIFICATE. The "Beneficiary Certificate" is the valid document for the enjoyment of tax benefits, being the same strictly personal and non-transferable.

INSTITUTION THAT ISSUES THE CERTIFICATE. The "Beneficiary Certificate" shall be processed before the National Service for Entrepreneurship and Small Businesses (SENPRENDE). Which is also the entity responsible for verifying the proper use of the "Beneficiary Certificate", as well as confirming that users do not fall within the exceptional beneficiary categories of article 9 of the Law and that they do not incur in the grounds for cancellation of the "Beneficiary Certificate" described below.

3. - CHARACTERISTICS OF THE CERTIFICATE. The Certificate issued by SENPRENDE must comply with the following characteristics: i. Unique registration number; ii. QR Code; iii. Name or Business Denomination of the MYPE; iv. Business line or economic activity to be carried out, which is established in the bylaws or articles of incorporation and merchant declaration; v. Address; vi. RTN number; vii. Names of partners, shareholders or social participants, when applicable; viii. Term of validity; ix. Date of issuance of the "Beneficiary Certificate"; and, x. Signature and seal of the regulatory entity.

CERTIFICATE REGISTRY. SENPRENDE must maintain a permanent and updated registry of all "Beneficiary Certificates" of the Law.

RENEWAL OF CERTIFICATE. The renewal of the "Beneficiary Certificate" shall be annual upon request of the beneficiary in compliance with the obligations stipulated in Article 12 of the Law, with the warning that if they do not do so they will not enjoy the benefits granted therein; likewise, said renewal shall be subject to users having submitted the sworn statement of the Income Tax for the previous fiscal period before the SAR and obtaining the operation permit granted by the municipality, as well as verification by SENPRENDE that users do not fall within the exceptions of beneficiaries of Article 9 of the Law and that they do not incur in the grounds for cancellation of the certificate described below.

CANCELLATION OF BENEFICIARY CERTIFICATE. SENPRENDE shall proceed to cancel the "Beneficiary Certificate" for any of the following grounds:

• 1)

  When it is proven that the partners, shareholders, social participants or natural persons of the MSMEs are part of another commercial company engaged in an equal activity or that they have been part of other companies engaged in a similar activity, within the three (3) years prior to the entry into force of the Law;

• 2)

  When it is proven that MSMEs include within their social participation legal entities regardless of their category;

• 3)

  When it is proven that MSMEs include legal entities in which they integrate within their social organization as a partner, shareholder or social participant natural persons who were partners, shareholders or social participants of a legal entity engaged in a similar activity and is dissolved, liquidated or closes its operations as of the entry into force of the Law;

• 4)

  When it is proven that the partners of the MSMEs modify the name or business name and/or the trade name of the corporate contract or its articles of incorporation or a transformation is carried out in its business name and is not disclosed in the certificate;

• 5)

  When the corresponding national and municipal permits and licenses are not processed for its operation;

• 6)

  When beneficiaries do not submit to SENPRENDE the annual report that accredits the jobs generated during the period in which they enjoy the benefits of this Law;

• 7)

  When beneficiaries do not comply with formal and material tax obligations before SAR;

• 8)

  When users do not use the benefits of the Law in a strictly personal manner; and, 9. When they declare to SAR gross income greater than TWELVE MILLION LEMPIRAS (L.12,000,000.00) in the previous fiscal year. Prior to verification with the competent institutions of non-compliance with the preceding paragraphs or by the referral of said information by them, SENPRENDE may cancel ex officio the "Beneficiary Certificate". CHAPTER V OF THE FORMALIZATION MECHANISMS

FORMALIZATION MECHANISMS. Formalization may be carried out through any of the following mechanisms: 1. Registration through the "My Business Online" portal, in accordance with the provisions of Legislative Decree No. 284-2013 dated January 8, 2014, containing the Law for the Generation of Employment, Promotion of Business Initiative, Formalization of Businesses and Protection of the Rights of Investors and its Regulation. 2. Registration in accordance with the provisions of the Commercial Code, other applicable laws or this Law. (Public Deed of incorporation granted through a notary public).

PROCEDURE FOR FORMALIZATION AND OBTAINING THE BENEFICIARY CERTIFICATE THROUGH THE MY COMPANY ONLINE PORTAL. 1. The user must access the Portal "My Company Online" in which they must complete the constitution form and adhesion to the benefits of the Law, to which they will attach a copy of the National Identification Document (DNI) of each partner, personal RTN, public electricity receipt from the company's address and email. 2. The user must go to the Commercial Registry to obtain the corporate contract or declaration as Individual Merchant. 3. The user must go to the SAR to complete the registration with the National Tax Registry, the subscription of the contract of adhesion to virtual services and sign the application form for adhesion to the benefits of the Law. Subsequently, the SAR will send electronically to SENPRENDE the company documentation and the application for adhesion to the Law signed by the User. 4. With the information contained in the application, SENPRENDE will issue the "Beneficiary Certificate" or document of denial of benefit in case it is within the exceptions of beneficiaries established in Article 9 of the Law, within a maximum period of eight (8) business days counted from the date of submission of the application, which will be sent to the user, SAR, SEFIN, Municipal Municipalities and other competent entities. Below is a graphic description of the steps to follow: Users may go in person to the offices of the SAR or SENPRENDE at the national level to receive assistance in the execution of Step number 1 described above.

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PROCEDURE FOR FORMALIZATION AND OBTAINING THE BENEFICIARY CERTIFICATE BY MEANS OF PUBLIC DEED. 1. The user must manage their Public Deed before a Notary Public, who will request information regarding the purpose of the company, business name, company address and other requirements established by the Commercial Code and will proceed to execute the Public Deed of Constitution. 2. The user or Notary Public must go to the Commercial Registry for the registration and recording of the Public Deed of Constitution. 3. The user must go to the SAR and present the original and copy of the deed of constitution, public energy receipt for the company address and copy of the ID of the partners to carry out the registration of the National Tax Registry, the subscription of the contract for adhesion to virtual services and sign the form requesting adhesion to the benefits of the Law. Subsequently, the SAR will electronically send to SENPRENDE the company documentation and the request for adhesion to the Law signed by the user. 4. With the information contained in the request, SENPRENDE will issue the "Beneficiary Certificate" or document of denial of the benefit in case it falls within the exceptions of beneficiaries established in Article 9 of the Law, within a maximum period of eight (8) business days counted from the date of submission of the request, which will be sent to the user, SAR, SEFIN, Municipal Offices and other competent entities.

PROCEDURE FOR OBTAINING THE BENEFICIARY CERTIFICATE FOR COMPANIES CONSTITUTED AND IN OPERATION WITH PRIOR OPERATION OF FIVE YEARS. 1. The user must present to the SDE a copy and original of the payroll of remunerated employees current as of December 31, 2021 showing that it has increased by twenty percent (20%) the generation of new remunerated jobs and, in the same manner, the last payroll of employees registered with the IHSS. 2. The SDE issues the Certificate that certifies compliance with the requirements established in Article 8, numerals 1), 2) and 3) of the Law. 3. The user must go to the SAR and present the certificate issued by SDE, original and copy of the Public Deed, copy of ID of the partners to fill out and sign the form requesting adhesion to the benefits of the Law. Subsequently, the SAR will electronically send to SENPRENDE the company documentation and the request for adhesion to the Law signed by the user. 4. With the information contained in the request, SENPRENDE will issue the "Beneficiary Certificate" or document of denial of the benefit in case it falls within the exceptions of beneficiaries established in Article 9 of the Law, within a maximum period of eight (8) business days counted from the date of submission of the request, which will be sent to the user, SAR, SEFIN, Municipal Offices and other competent entities.

PROCEDURE FOR OBTAINING THE BENEFICIARY CERTIFICATE FOR COMPANIES CONSTITUTED AND IN OPERATION WITH PRIOR OPERATION OF FIVE YEARS. 1. The user must present to the SDE a copy and original of the payroll of remunerated employees current as of December 31, 2021 showing that it has increased by twenty percent (20%) the generation of new remunerated jobs and, in the same manner, the last payroll of employees registered with the IHSS. 2. The SDE issues the Certificate that certifies compliance with the requirements established in Article 8, numerals 1), 2) and 3) of the Law. 3. The user must go to the SAR and present the certificate issued by SDE, original and copy of the Public Deed, copy of ID of the partners to fill out and sign the form requesting adhesion to the benefits of the Law. Subsequently, the SAR will electronically send to SENPRENDE the company documentation and the request for adhesion to the Law signed by the user. 4. With the information contained in the request, SENPRENDE will issue the "Beneficiary Certificate" or document of denial of the benefit in case it falls within the exceptions of beneficiaries established in Article 9 of the Law, within a maximum period of eight (8) business days counted from the date of submission of the request, which will be sent to the user, SAR, SEFIN, Municipal Offices and other competent entities. CHAPTER V OF THE OBLIGATIONS OF BENEFICIARIES

OBLIGATIONS. The beneficiaries of the Law shall comply with the following obligations:

• 1)

  Process the "Beneficiary Certificate" before the competent authority and request its annual renewal;

• 2)

  Process permits, national and municipal licenses for the proper operation of their business;

• 3)

  Comply with their formal obligations contained in the Tax Code and its reforms and other laws in tax matters;

• 4)

  Comply with their formal obligations before the Municipality;

• 5)

  Present annually to SENPRENDE a report together with the respective supporting documents, which prove the number of jobs generated during the time they enjoy the benefits of the Law. CHAPTER VI RESIGNATION OF BENEFICIARIES

PROCEDURE TO RENOUNCE THE BENEFITS OF THE LAW. Individual merchants and Micro or Small Enterprises that wish to voluntarily renounce the benefits of the law shall do so in the following manner: 1. Submit an application to the Formalization Subdirectorate of SENPRENDE, in which they must specify the reasons for their voluntary renunciation of the benefits. 2. SENPRENDE through the Formalization Subdirectorate shall admit the applicant's documentation to transfer the file to the Legal Direction Unit where it shall issue a legal opinion that will determine whether the applicant may renounce the benefits of the law. 3. The Formalization Subdirectorate of the Mercantile Business Unit shall proceed to the voluntary cancellation of the "Beneficiary Certificate", which shall be notified to SEFIN, SAR, the SDE or another Institution of the Central Government and the Municipalities. CHAPTER VII REPORTS

REPORTS. The Secretariat of State in the Offices of Labor and Social Security must present an annual report on job creation by the tax incentive of the Law, in order to measure tax returns to: a. SEFIN b. SAR c. SENPRENDE

DETAIL OF JOB POSITIONS. Micro and Small Enterprises that are established and in operation must accredit before the SDE within three months counted from the granting of the "Beneficiary Certificate," the increase in job positions in accordance with the payroll registered with the IHSS. PRESIDENCY OF THE REPUBLIC SECRETARIAT OF FINANCE

CHAPTER V OF THE OBLIGATIONS OF BENEFICIARIES

OBLIGATIONS. The beneficiaries must comply with the following:

• 1)

  Process the "Beneficiary Certificate" before the competent authority;

• 2)

  Maintain compliance with the requirements established in this law;

• 3)

  Maintain updated records and documentation required by the corresponding institution;

• 4)

  Submit periodic reports as required;

• 5)

  Comply with all other obligations established in the regulations of this law.

  CHAPTER VI OF THE RENUNCIATION OF BENEFICIARIES

PROCEDURE TO RENOUNCE THE BENEFITS OF THE LAW. Any beneficiary who wishes to renounce the benefits granted under this law must follow the following procedure: 1. Submit a written request to the corresponding institution, which must contain the reasons for the renunciation and be accompanied by the supporting documentation required. 2. The institution will verify the information provided and issue a resolution within the established timeframe.

Step 1 User Step 2 SDE Step 3 SAR Step 4 SENPRENDE

CERTIFICATES. SENPRENDE must send electronically to SEFIN: a. "Beneficiary Certificates" to the State Department in the Ministry of Finance through the General Directorate of Customs Franchise Control. b. SENPRENDE shall send to the General Directorate of Tax Policy of SEFIN, annually a copy of the report together with the respective supporting documents, which certifies the number of jobs generated during the time they enjoy the benefits of the Law, presented by the beneficiaries of the exemption and "Beneficiary Certificate".

TAX EXPENDITURE. For purposes of calculating tax expenditure, the SDE must send electronically to the General Directorate of Tax Policy of SEFIN, a copy of the report presented by the Micro and Small Enterprises constituted and in operation of the granting of the "Beneficiary Certificate", the increase in jobs in accordance with the payroll registered with the IHSS. CHAPTER VIII FINAL PROVISIONS

LIABILITY. The applicant and the natural or legal persons listed as partners, shareholders or social participant in the "Beneficiary Certificate" shall be civilly, criminally and administratively responsible for the misuse thereof.

COOPERATION. SEFIN, SAR, SDE, IP and other institutions involved in the implementation of the Law must provide cooperation to SENPRENDE, in the function of receiving and delivering documentation and information of the interested party to benefit from the benefits established by the Law. Present annually to SENPRENDE a report together with the respective supporting documents, which certifies the number of jobs generated during the time they enjoy the benefits of the Law.

SANCTIONING REGIME. SEFIN, SENPRENDE, SAR, AAH and the Municipalities, within the scope of their competence, must sanction the non-compliance with the obligations established and that derive from the implementation of the Law.

ADDITIONAL PROVISIONS. The Secretariat of State in the Office of Finance (SEFIN) in coordination with the Tax Administration SAR, SENPRENDE and SDE through an Agreement shall regulate everything not regulated in this Regulation.

EFFECTIVE DATE. This Agreement shall enter into force on the day of its approval and must be published in the Official Gazette "La Gaceta". Given in the city of Tegucigalpa, municipality of the Central District, on the 17th day of the month of June of the year two thousand twenty-two (2022). LET IT BE COMMUNICATED AND PUBLISHED: IRIS XIOMARA CASTRO SARMIENTO CONSTITUTIONAL PRESIDENT OF THE REPUBLIC RIXI MONCADA GODOY SECRETARY OF STATE IN THE MINISTRY OF FINANCE