Anti-Tax Evasion Measure Law on Income Tax
Congreso Nacional
- Decree: 96-2012
- Published: July 20, 2012
- Issuing body: Congreso Nacional
- Gazette: 32,877
- Category: Financial & Tax
Summary
This law combats tax evasion by requiring companies with annual income over 100 million lempiras that had losses in two years to pay a 1% advance on income each quarter. It also requires unregistered importers or delinquent taxpayers to pay a 3% advance at customs, though exceptions apply to new businesses, force majeure cases, and tax-exempt entities.
Considerations
Whereas the Constitution of the Republic in its Article 351 establishes that the Tax System of the Republic of Honduras shall be governed by the principles of Legality, Proportionality, Generality and Equity in accordance with the economic capacity of the taxpayer.
Whereas according to Decree Law Number Twenty-Five (25) of the Twenty-Seventh (27) of December 1963, and its Amendments, the Income Tax was created, which
Whereas the Honduran Tax System is paid annually and taxes income derived from capital, labor, or the combination of both, as determined by its own Law, which rests on the principle of ability or payment capacity of the taxpayer and which is measured by means of income received in money, credit, securities, rights, kind or in any other form, provided it can be calculated objectively in monetary terms, during the taxable period or year.
Whereas it is of public interest to regulate the activity of the State for the obtention of tax revenues, as well as to establish and determine the mechanisms of control and strengthening thereof, to meet the urgent demands of the most vulnerable sectors of society. As the Tax Code establishes, it seeks to combat the practices of Tax Evasion and Tax Avoidance by taxpayers in the payment of Income Tax.
Whereas it is the obligation of taxpayers to pay the taxes established by Law, in order to maintain the equity of the Tax System, for which the advance payment of Income Tax is established for taxpayers who are not registered in the Registry of Taxpayers administered by the Executive Revenue Directorate (DEI); likewise those taxpayers who are in default or insolvent.
Articles
Natural or legal persons that during the non-prescribed fiscal periods established in Article 136, numeral 2) of the Tax Code, which in two (2) of them have had consecutive or alternate operational losses and that in the last fiscal period have obtained gross income equal to or greater than One Hundred Million Lempiras (L.100,000,000.00) annually, shall be subject to payment of an advance of one percent (1%) in the form of Income Tax, which shall be calculated on declared gross income. The advance of one percent (1%) in the form of Income Tax constitutes a credit in the Annual Statement to be applied either to Income Tax, Net Assets or Temporary Solidarity Contribution. The following are exempt from the application of the advance of one percent (1%): 1). Natural or legal persons in the pre-operative stage of their activities for a maximum of five (5) years; 2). Natural or legal persons that had operational losses caused by act of God or force majeure, said loss must be certified by an audit firm duly registered with the respective professional association, without prejudice to subsequent fiscal review by the EXECUTIVE REVENUE DIRECTORATE (DEI); 3). Natural or legal persons authorized by the EXECUTIVE REVENUE DIRECTORATE (DEI), to apply loss carryforward as established in Article 20 of the Income Tax Law; 4). Natural or legal persons that incurred tax in the last fiscal period and that are subject to the installment payment system, according to Article 34 of the Income Tax Law; 5). Natural or legal persons that accredit through fiscal audit opinion, conducted by an audit firm duly registered with its respective professional association, that the Fiscal Loss is real, which shall be verified by the EXECUTIVE REVENUE DIRECTORATE (DEI); and, 6). Natural or legal persons established in Article 7 of the Income Tax Law and those that are exempt from said tax by special legislative laws or decrees in force.
Payment of the advance of one percent (1%) in the form of INCOME TAX (ISR), shall be made quarterly in the months of June, September, and December starting in the year two thousand thirteen (2013), in accordance with the procedure already established in Articles 27, 29, and 34 as reformed of the currently applicable Income Tax Law.
For purposes of internal taxation, natural or legal persons subject to payment of INCOME TAX (ISR), that conduct transactions of definitive importation of goods for commercial purposes through the different customs houses of the country, that are not registered as taxpayers in the EXECUTIVE REVENUE DIRECTORATE (DEI), or that being registered are negligent in the presentation of their statement, as well as taxpayers that have a liquid, final, and enforceable debt in the payment of any tax administered by the EXECUTIVE REVENUE DIRECTORATE (DEI), shall pay in the form of advance three percent (3%) of Income Tax, applied on the referential basis of the CIF value of said goods imports. The aforementioned advance shall be entered and paid at the moment of liquidation of the "Single Customs Declaration" and constitutes a credit for the Declaration of Income Tax, Net Assets, or Temporary Solidarity Contribution until exhausted. For purposes of application of this Article the following are defined as: 1) Unregistered Taxpayer: Those natural or legal persons that are not registered as such in the Executive Revenue Directorate (DEI). 2) Negligent Taxpayer: Those natural or legal persons that have not complied with the presentation of their Income Tax statement. 3) Delinquent Taxpayer: Those natural or legal persons that have pending balances due to the State. 4) CIF: It is comprised of the price of the good(s), plus the costs of insurance and freight of goods imports. The following are exempt from payment of this advance: 1) Natural or legal persons established in Article 7 of the Income Tax Law and those that are exempt from said tax by special legislative laws or decrees in force; and, 2) Non-profit educational institutions protected by Legislative Decrees and registered with the Secretariat of State in the Office of Finance.
Article 13 of Decree No. 113-2011, containing the Law of Efficiency in Income and Public Expenditure dated June 24, 2011, is hereby repealed.
This Decree shall enter into force the day following 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 twentieth day of the month of June of the year two thousand twelve. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT RIGOBERTO CHANG CASTILLO SECRETARY GLADIS AURORA LÓPEZ CALDERÓN SECRETARY To the Executive Branch In Consequence: Let it be executed. Tegucigalpa, M.D.C., July 12, 2012. PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC The SECRETARY OF STATE IN THE OFFICE OF FINANCE. HÉCTOR GUILLERMO GUILLÉN
Related laws
- Reform of the Law on Public Finance Management, Control of Tax Exemptions and Anti-Evasion Measures — This decree reforms income taxes for large Honduran businesses. It exempts companies with income up to L300 million in 2017 from an anti-evasion measure, while larger companies pay minimum taxes between 0.5% and 1% depending on their income, with reductions for sectors like cement, medicines, bread, and coffee. It also regulates the sale of customs forms by assigning commissions to COHEP. (Decree 31-2018, 2013)
- PCM-103-2021 — This decree creates the 'Relief Bonus for Vulnerable Families' program that delivers L 7,000 to a maximum of 234,579 extremely poor households located in areas affected by natural disasters. The program, funded with US$ 70 million from BCIE and executed by the Secretariat of Social Development and Inclusion, aims to help the most vulnerable families restart their economy and improve their quality of life. (Decree PCM-103-2021, 2021)
- PCM-136-2020 — This decree creates the "Emergency Bonus for Disaster Victims" to deliver 5,000 lempiras to up to 60,000 households affected by tropical storms ETA and IOTA. The program aims to help with basic needs and recovery of damaged property, will be executed by the Secretary of Social Development with a budget of 300 million lempiras, and will have transparency supervision. (Decree PCM-136-2020, 2020)
- Decreto Ejecutivo No. PCM-136-2020 — Bono por Emergencia a Damnificados - Operación No Están Solos (Decree PCM-136-2020, 2021)
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