Financial Equilibrium Law

Reform Articles 6, 10, 11 second paragraph, 11-A first paragraph, and 12 of the Sales Tax Law, contained in Decree Law No. 24 of December 20, 1963, and its Amendments, which shall read as follows:

The general tax rate is twelve percent (12%) on the value of the taxable base of imports and the sale of goods and services subject to the same. The rate shall be fifteen percent (15%) only when applied to imports or sale of beer, spirits, compound liquors and other alcoholic beverages, cigarettes and other products made of tobacco. This tax shall be applied on the sale price at the distributor stage, deducting the value of the production and consumption tax both in imports and in national production. The collection of this tax shall be at the producer level and in imports at the moment of liquidation and payment. The same procedure of the preceding paragraph shall apply to the twelve percent (12%) that falls on carbonated beverages. In the case of cigarettes and other products made of tobacco, it shall be calculated based on the sale price at the wholesale stage, deducting the value of the sales tax and the production and consumption tax both in imports and in national production. For the application of the taxable base in beer, spirits, compound liquors and other alcoholic beverages, cigarettes and other products derived from tobacco and carbonated beverages, special regulations shall be issued. The manufacturers and importers of the goods indicated in paragraphs two and three of this Article are obliged to provide to the Secretariat of State in the Office of Finance, the wholesale prices of their products, within ten (10) days following the entry into force of the respective Regulation. In the case of tickets for national and international air transport, including those issued via Internet or other electronic means, the tax shall be collected at the place where the electronic order or ticket is issued, or in its absence, at the place of boarding of the passenger in the national territory. The value of the sales tax on goods and services that are exported, including special regimes and export promotion regimes, shall be calculated at a zero rate, with exports being exempt and having the right to credit or refund for the sales tax paid on the inputs and services incorporated or used in the production of exported goods".

.- ... ... ... When the responsible parties are part of the Simplified Regime referred to in Article 11-A of this Law with taxable sales up to one hundred eighty thousand Lempiras (L. 180,000.00) annually. The volume of sales of the amount indicated of one hundred eighty thousand Lempiras (L. 180,000.00) shall exclude sales of exempt goods and services and those that paid the tax at the factory level for purposes of determining the declaration. ... ... ..."

A Simplified Regime of the Sales Tax is established for natural or legal persons who have only one commercial establishment and whose taxable sales do not exceed ONE HUNDRED EIGHTY THOUSAND LEMPIRAS (L. 180,000.00) annually, and shall not require the filing of an Affidavit Declaration. ... ...

The responsible parties shall act in accordance with the following rules for the liquidation of said tax: In the case of sales or provision of services, the liquidation shall be made taking as a basis the difference that results between the debit and the fiscal credit. 1) The debit shall be determined by applying the tax rate to the value of the sales of the respective goods and services, less, as applicable: a) The value of the taxes that the responsible party has returned for annulled or rescinded sales in the fiscal period. b) The value of the taxes that the responsible party has returned for price reductions and discounts or other normal deductions from commerce in the fiscal period. 2) The credit shall be constituted by the amount of the sales tax paid on the occasion of the information and invoiced for internal purchases of goods and services made by the responsible party, less, as applicable: a) The value of the taxes that have been returned to the responsible party for annulled or rescinded purchases in the fiscal period. b) The value of the taxes that have been returned to the responsible party for price reductions, discounts or other deductions that imply a decrease in the purchase price of goods and services in the fiscal period. In case of import of goods or services, the liquidation shall be made by applying to each transaction the rate of the sales tax on the taxable base referred to in Article 3 above. All taxpayers responsible parties, including exporters, enjoy the right to fiscal credit. The right to fiscal credit does not apply for the import or acquisition of goods or the use of services, when they are not properly documented or when the respective document does not meet the requirements established in the regulation of this Law. In no case shall the Sales Tax that should be treated as a fiscal credit be taken only as a cost or expense for purposes of Income Tax. Uncollectible credits and debts shall not give the right to deduct the respective fiscal debit. When it comes to responsible parties obligated to file monthly, the fiscal credit can only be credited in the fiscal period corresponding to the date on which said credit was incurred or in one of the three months following said period. The credit shall be requested in the period in which it was credited and in the same writing in which the respective declaration is made. Capital goods that are used to produce goods or services when they pay the tax referred to in this Law shall have the right to credit or refund of the tax contemplated in that Article. When the difference between the Debit and the Fiscal Credit is favorable to the taxpayer, the balance shall be transferred to the following month and so on until exhausted. In cases where the balance is maintained for a period of six (6) months, the taxpayer or responsible party may use it, after notifying the Executive Revenue Office (DEI), for the payment of any other tax administered by it or for the payment of fines, interest or surcharges or other similar acts. In those cases where the purchase of capital goods is made by natural or legal persons that produce goods or provide services exempt from the payment of sales tax, the fiscal credit shall be applied to any other tax. In the event of not having pending accounts with the Tax Authority, the Executive Revenue Office (DEI), upon request of the interested party, shall process a cash refund within a period not exceeding fifteen (15) business days. The Executive Power shall appropriate annually in the General Budget of Income and Expenditures of the Republic an amount to cover the corresponding refunds. The Secretariat of State in the Office of Finance shall establish an expedited system for refunds through the use of the services of the national banking system.

Reform Decree Law No. 24 of December 20, 1963, which contains the Sales Tax Law and its Amendments, adding to Article 5-A subsection e) and to Article 7 a final paragraph, which shall read as follows:

... ... ... e) Used goods and merchandise are subject to the sales tax when imported, in which case this tax shall constitute a cost of the same. When these goods and merchandise are subject to commercialization in the internal market, they shall not be taxed with the sales tax.

... ... The document that is issued through computer systems or other electronic means constitutes a document equivalent to the invoice, which must meet the minimum requirements of the same and be used prior notification to the Executive Revenue Office (DEI) and without application of any economic penalty. In the same manner, accounting records may be maintained by computer or operated with cash registers by notifying the Executive Revenue Office (DEI) and without application of any economic penalty".

Reform Articles 5, 22 subsection a), 25, 27 and 50 final paragraph of the Income Tax Law, contained in Decree No. 25 of December 20, 1963 and its Amendments, which shall read as follows:

... ... ..." Reduce fifteen percent (15%) of the tax applied on income, profits, dividends or any form of profit-sharing or reserves, established in numerals 4) and 5) according to the following scale: ... ...

The tax established by this Law shall be collected from natural or legal persons domiciled in the country, in accordance with the following provisions: a) Legal entities shall pay with the following non-cumulative rates: 1) On net taxable income from L. 0.01 to L. 200,000.00, a rate of..............................15% shall be paid 2) On net taxable income exceeding L. 200,000.00, a rate of ........................................25% shall be paid On the total net taxable income. b) .... ....

Reduce the ten percent (10%) rate applied on income received by natural or legal persons, residents or domiciled in the country, in the form of dividends or any other form of profit-sharing or reserves, as follows: ... ...

The annual period for the computation of taxable income tax begins on the first (1) of January and ends on the thirty-first (31) of December. Notwithstanding the above, the taxpayer may have a special fiscal period, which must be notified in advance in writing to the Executive Revenue Office (DEI) and in accordance with said period shall make its declaration and own computation of the tax.

... ... YEAR RATE 2002 10% 2003 5% 2004 0% ... Natural or legal persons under public and private law that make payments or establish credits in favor of natural or legal persons resident in Honduras, not exempted from Income Tax shall withhold and remit to the Tax Authority twelve point five percent (12.5%) of the amount of payments or credits made for professional fees, per diem, commissions, gratuities, bonuses and remuneration for technical services. The following are excepted from this provision: payments made under labor contracts executed during the fiscal year and whose fees as the only source of income do not exceed NINETY THOUSAND LEMPIRAS (L. 90,000.00). The withholdings shall have the character of advances on the payment of Income Tax of the respective taxpayers and must be remitted within the first ten (10) days following the month in which the withholding was made. Said withholdings shall not be applicable to natural or legal persons subject to the installment payment regime.

Reform Article 23 of Decree Law No. 10 of December 28, 1972 which contains the Law of the National Professional Training Institute (INFOP) and its Amendments, which shall read as follows:

Companies that contribute monthly in favor of the Institute the one percent (1%) of the amount of salaries and wages accrued may deduct said contribution from gross income for purposes of Income Tax".

Add subsection n) to Article 11 of the Income Tax Law, contained in Decree No. 25 of December 20, 1963, which shall read as follows:

... ... ... n) Representation expenses and/or bonuses or gratuities, including customary ones that constitute part of the salary assigned to owners, partners, shareholders, executives, officials, directors, managers, board members or other employees or workers of the taxpayer, including those supplied to technicians working in Honduras, in an annual amount equivalent to a maximum of fifty percent (50%) based on twelve (12) salaries received in a Fiscal Year; in the same proportion they shall be deductible for natural persons to whom they are assigned".

Reform Article 2, Items 27, 30, 32 and 33 of Section IV and Items 41 and 42 of Section V of the Consular Tariff, contained in Decree No. 27-97 of March 20, 1991, which shall be read as follows:

.... ... ... Section IV.- Administrative Acts: ... ... ... ITEM CONCEPT BASIS OF COLLECTION TARIFF (US$) Issue or revalidate Passports Application for Residency Translation of Documents or Translation Certificates Certification of Signatures Per unit Per unit Per document Per unit 60.00 150.00 50.00 60.00 Section V.- Notarial Acts ITEM CONCEPT BASIS OF COLLECTION TARIFF (US$) Granting General Power of Attorney Granting Special Power of Attorney Unit Unit 150.00 200.00 For the information of users, the tariffs established in this Decree must be posted in a visible size and place in all General Consulates and Consular Sections of Honduras abroad.

Reform Articles 1, 5, 6, 8, 9, 10, 11, 12, 13, 14 and 18 of Decree No. 314-98 dated December 18, 1998, containing the Tourism Incentives Law, which shall be read as follows:

This Law aims to promote the development of the country's tourism supply, through the granting of tax incentives that make it viable for greater participation of national and foreign private investment in the process of developing tourism products, creating facilities to achieve employment generation, investment, foreign exchange inflow and taxes to the State".

The incentives granted by this Law consist of and are regulated by the following rules:

• 1)

  Exemption from the payment of Income Tax for ten (10) years as of the start of operations. This incentive shall be granted exclusively to new projects, understood as those tourist establishments that begin operations for the first time and that do not involve expansion, remodeling, change of ownership, change of name, corporate reason or denomination or any other similar situation;

• 2)

  Exemption from the payment of tax and other taxes caused by the importation of new goods and equipment necessary for the construction and start of operations of projects framed in the activities enumerated in Article 8 of this Law. The following are excepted: supplies, spare parts, construction equipment, weapons, ammunition, amenities, food, fungible goods and toxic products;

• 3)

  Exemption from the payment of taxes and other taxes caused by the importation of all printed material for promotion or advertising of projects or the country as a tourist destination;

• 4)

  Exemption from the payment of taxes and other taxes caused by the importation for replacement due to deterioration of goods and equipment, during a period of ten (10) years, subject to verification. 5) Exemption from the payment of taxes and other taxes caused by the importation of new motor vehicles, such as: Bus, pick-up, panel, truck and those acquired by vehicle rental companies, all for exclusive use in the strict line of business and subject to evaluation of the activity, type of establishment, capacity, magnitude and location; and, 6) Exemption from the payment of taxes and other taxes caused by the importation of new and used aircraft or vessels for air, maritime or fluvial transport, provided that they meet safety, comfort and quality requirements, as well as the technical operating conditions for their use in the specific line of tourism".

Individual or corporate merchants established or existing whose business line is within the framework of tourist activities stipulated in Article 8 may enjoy the benefits contained in Article 5, numerals 2), 3), 4), 5) and 6) of this Law, provided they present the respective projects for expansion, remodeling or replacement, to be qualified by the State Secretary in the Office of Tourism".

The beneficiaries of the incentives stipulated in Article 5 of the Law shall be individual or corporate merchants whose activity or business line is directly linked to tourism and provide the following tourist services:

• 1)

  Hotels, lodgings, rooms with timeshare systems or hotel operation;

• 2)

  Air transport of persons;

• 3)

  Water transport of persons;

• 4)

  Recreation centers. The following are excluded: casinos, nightclubs, machinery game centers, video, slot machines or similar, movie theaters, television, cable television and similar, private clubs, billiards, gymnasiums, saunas and similar (SPA), Internet cafés, discotheques, educational institutions under any modality, foundations and any other not linked to tourism;

• 5)

  Artisan workshops and artisan shops that dedicate themselves to the production, manufacture or sale of Honduran artisanry exclusively; the following are excluded: carpentry, fine woodworking, ironwork, dent removal, painting, jewelry shops and any other not linked to tourism. 6) Receptive Tourism Agencies; 7) Convention Centers; and, 8) Motor vehicle rental companies for vehicles intended for the strict line of business. All tourist service providers must be located in zones and places of tourist interest, in accordance with the classification of the Honduran Institute of Tourism and their activity or business line must be framed within morality and good customs. The regulatory provisions that are necessary for the correct application of this Article shall determine the requirements that must be met by the beneficiaries for each type of tourist service provider, this includes classification, registration and control".

Without prejudice to what is established in the Administrative Procedure Law, those interested in availing themselves of the incentives provided for in this Law must submit to the State Secretary in the Office of Tourism a request that describes the project to be developed extensively, attaching the following documents:

• 1)

  Testimony of Public Deed of incorporation of a company or declaration of individual merchant, registered in the corresponding Registry;

• 2)

  Testimony of Public Deed of ownership of the land where the project will be developed, registered in favor of the petitioning individual or corporate merchant;

• 3)

  Commercial premises lease contract, if applicable;

• 4)

  Project feasibility study;

• 5)

  Topographic plan with the table of bearings, distances and area of the land where the project will be developed, with responsible signature and seals in accordance with the respective law.

• 6)

  Plans of the work to be performed, with responsible signature and seals in accordance with the respective law;

• 7)

  Schedule for investment and execution of the work;

• 8)

  Evidence of financial availability to execute the project;

• 9)

  Certificate of registration in the National Tourism Registry; and,

• 10)

  List of goods and equipment to be imported with their respective nomenclature, attaching an electronic copy in which the aforementioned list is found. The State Secretary in the Office of Tourism shall send the request together with the attached documents to the Honduran Institute of Tourism, which, to issue its opinion, shall require from the petitioner in addition to the foregoing, general data of the project developer and considerations regarding environmental and cultural impact as appropriate, issued by the State Secretary in the Offices of Natural Resources and Environment and the State Secretary in the Offices of Culture, Arts and Sports. For its Resolution, the State Secretary in the Office of Tourism shall require the corresponding Environmental License".

In the event that the project is carried out in the historic district of a city, town or in a place where archaeological remains are detected, the opinion of the Honduran Institute of Anthropology and History shall also be required".

Once the request has been received together with the documentation referred to in Article 9, the State Secretary in the Office of Tourism shall request the legal and technical opinions and reports that are necessary and shall conduct the corresponding inspections, and must issue the corresponding Resolution within the term established for such purposes by the Administrative Procedure Law".

Once the favorable Resolution is issued in which the benefits are authorized, the interested party shall request the corresponding dispensation from the State Secretary in the Office of Finance, and must attach the Resolution of authorization. If due to the complexity and magnitude of the project, it is not possible for the interested party to present the complete list of goods to be imported with dispensation all at once, he may do so partially, in which case the State Secretary in the Office of Tourism shall resolve, after analysis, what is appropriate".

All those interested in applying for the benefits established by this Law shall present in the same request the tourism project for its approval".

If at the end of three (3) years from the issuance of the Resolution authorizing the project and granting the corresponding incentives, it has not begun operations, the interested party may request a renewal of authorization for up to one year, explaining the reasons that have prevented him from beginning the provision of services; if he does not do so, the authorization and the benefits derived from it shall automatically expire".

Without prejudice to what is established in this and other laws, taxpayers of other economic activities that do not benefit from the incentives referred to in Article 5 of this Law may deduct up to fifteen percent (15%) of the net taxable income corresponding to, for the concept of investment of their profits in new projects, remodeling or expansion of Convention Centers and Hotels, for a period of ten (10) years. The State Secretary in the Office of Tourism, together with the State Secretary in the Office of Finance, shall issue the regulatory provisions that are necessary for the correct application of this Article".

Reform Decree No. 93-91 of July 30, 1991, which contains the "Law for Pensioned Residents and Annuitants", as to its name and Articles 1, 2, 6, 7, 8, 9, 10, 12, 13, 15, 16, 18 and 19 of the Law for Pensioned Residents and articles which shall be read as follows: "LAW FOR PENSIONED RESIDENTS"

Authorization is granted for the entry into the country of natural persons under the category of 'Pensioned Residents'.

To obtain residency, interested parties must demonstrate that they enjoy permanent and stable pensions generated or derived from abroad, not less than ONE THOUSAND DOLLARS (US$. 1,000.00) monthly, currency of the United States of America or its equivalent, in national currency".

The beneficiaries may also introduce a motor vehicle for their personal or family use, free of all import taxes, tariffs and sales taxes, which may be sold or transferred by any title to third parties, exempted from such taxes, after five (5) years have elapsed from the date of entry of the vehicle into the country and subject to prior presentation of proof of having deposited in the Central Bank of Honduras or any other bank of the national banking system an amount not less than US$. 60,000.00 which corresponds to the minimum income per natural person for five (5) years. In such case, the pensioner automatically acquires the right to the importation of another vehicle and thus successively every five (5) years. In case of proven loss of the vehicle, due to theft or total destruction by fire, collision or accident, occurring during the five (5) year period, the beneficiary of this Law may acquire another vehicle free of the aforementioned taxes".

If the beneficiary renounces his or her status as a Pensioned Resident within the periods indicated in Articles 5 and 6 of this Law, he or she must pay the taxes from which he or she was exempted".

Interested parties may process their requests to obtain the benefits of this Law through consular officials accredited abroad. Those who already reside in Honduras may do so before the State Secretary in the Offices of Governance and Justice, provided they meet all the requirements demanded by this Law and its Regulations".

At the request of interested parties, officials of the Foreign Service must issue a Certificate stating that immigrants under this Law enjoy the value of the minimum required pension and send it together with the probative documents duly authenticated".

The benefits established by this Law also cover Honduran pensioners and retired persons by international institutions or foreign governments and those who, not having that status, prove to enjoy pensions from the private sector abroad and who have resided outside the country on a permanent basis for no less than ten (10) years".

Persons covered by this Law may not engage in paid employment. Also excepted from this prohibition are those who invest in productive activities for the country, in industrial, agro-industrial, agricultural, artisan, tourism, housing or other projects of national interest, authorized by the State Secretary in the Offices of Governance and Justice. Furthermore, those persons who may provide their professional services to government entities, formerly autonomous, semi-autonomous, universities and educational institutes are exempt. In the cases indicated in the preceding paragraphs, the pensioner shall pay the respective taxes".

Pensioned Residents must reside within national territory, for at least a consecutive or alternate period of six (6) months per year, as of the date the category is granted. The State Secretary in the Offices of Governance and Justice may dispense with the above for the Resident who demonstrates that he or she has made or is making investments in the country for a value of less than TWO HUNDRED THOUSAND DOLLARS (US$. 200,000.00) currency of the United States of America, in industrial, agro-industrial, agricultural, artisan, tourism, housing and other projects of national interest previously authorized by the State Secretary in the Offices of Governance and Justice. Likewise, when it is demonstrated by the Pensioned Resident that he or she must leave the country to receive medical treatment abroad, in which case he or she must leave a legal representative in charge of converting the pension in the Central Bank of Honduras or any bank of the national banking system with which the resident operates, and in general, the administration of the exempted assets".

When a Pensioned Resident leaves the country, he or she must leave a legal representative for the administration of his or her assets, if any, within national territory, and the State Secretary in the Offices of Governance and Justice must extend the respective proof".

The agency charged with hearing and resolving requests to avail themselves of the benefits of this Law shall be the State Secretary in the Offices of Governance and Justice. Once the Agreement is issued by which the category of Pensioned Resident is granted by the State Secretary in the Offices of Governance and Justice, the General Directorate of Population and Migration Policy shall issue an identity card that accredits the holder, spouse and dependents, as residents. The document that accredits residents shall have a validity period of two (2) years; to renew it, the interested party must present certification issued by the State Secretary in the Offices of Governance and Justice stating that he or she maintains his or her resident status".

Residencies that were granted under Decree No. 93-91 of July 30, 1991, for Pensioned Residents shall remain in effect, and must renew the Residency Card each year in the General Directorate of Population and Migration Policy and accompany proof of their deposits in United States dollars or lempiras, from any bank of the national financial system".

Persons who obtained their residency as Annuitants under the Law of Pensioned Residents and Annuitants shall continue to enjoy the same migration status".

Add to the Law for Pensioned Residents, Articles 20, 21 and 22, which shall be read as follows:

Resident Annuitants to whom authorization has already been granted for the introduction of household goods and a motor vehicle free of all import taxes, tariffs and sales taxes, shall not enjoy any additional tax benefits".

Applications for residencies as pensioned or annuitant; as well as for exemption of household goods and motor vehicles, that are in process at the time this Decree enters into force, shall be resolved in accordance with the procedure in force at the date of their presentation".

The State Secretary in the Offices of Governance and Justice shall elaborate the regulations to the Articles of this Chapter that reform Decree No. 93-91 of July 30, 1991".

Reform Article 9 of the Passport Law, contained in Decree No. 124 of February 3, 1971 and its Reforms, which shall be read as follows:

Regular, diplomatic and official passports shall be considered as fiscal items, shall have validity for five (5) years and may be revalidated only once for an equal period of five (5) years. The issuance of the passport booklet shall incur the payment of FOUR HUNDRED SIXTY-FIVE LEMPIRAS (L. 475.00) and its revalidation shall incur the payment of TWO HUNDRED FIFTY LEMPIRAS (L. 250.00), which must be remitted to the General Treasury of the Republic, by means of official receipt of payment. Diplomatic and official passports shall have validity for as long as the holder of the passport remains in the exercise of office. The category of special passport is eliminated".

Reform Articles 178 and 188 of Decree No. 212-87 of November 29, 1987, contained in the Customs Law, which shall be read as follows:

The license shall be a non-transferable document that shall have a determined duration and constitutes a personal document that may not be transferred, loaned, assigned, rented, or disposed of under any title. Its issuance and renewal shall incur rights in favor of the Treasury for a value of FIVE THOUSAND LEMPIRAS (L. 5,000.00) and shall have a duration of two (2) years. The holder of the license shall also pay the sum of ONE THOUSAND LEMPIRAS (L. 1,000.00) annually for each customs house where he exercises his activities".

... ... ... The issuance and renewal of the License shall incur rights in favor of the Treasury for a value of TEN THOUSAND LEMPIRAS (L. 10,000.00) and shall have a duration of two (2) years. The holder of the license shall also pay the sum of ONE THOUSAND LEMPIRAS (L. 1,000.00) annually for each customs house where he conducts shipping operations".

Reform Article 2 of Decree No. 182-92 of October 30, 1992 and its Reforms, containing the Law on Airport Service Fees, which shall be read as follows:

The following are excepted from the payment of this fee or tariff:

• a)

  Passengers in transit;

• b)

  Transfer passengers who miss their connecting flight due to reasons of force majeure or act of God and whose stay does not exceed twenty-four (24) hours;

• c)

  Transfer passengers who have a waiting period between their arrival and departure flights not exceeding twelve (12) hours;

• d)

  Passengers required to use an alternate airport due to special or extraordinary circumstances duly qualified;

• e)

  Foreign passengers entering the country on humanitarian aid missions to provide assistance in humanitarian and health work in case of declared national emergency; and,

• f)

  Passengers of Honduran nationality who carry an official or diplomatic passport;

Reform Articles 1, 2 and 3 of the Stamp Paper and Stamps Law, contained in Decree No. 75 of April 7, 1911 and its Reforms, which shall be read as follows:

The Judicial Branch shall issue, manage and distribute stamp paper, which shall be of a single class, printed on security paper with its respective emblem, value, four-year period and dimensions that are considered appropriate to maintain guarantees of the legal acts and facts recorded in the same".

The Supreme Court of Justice may modify the value of the paper, and must print the new value in existing supplies. Income from this concept shall be remitted to the General Treasury of the Republic and the Executive Branch shall make the respective transfer to the Judicial Branch within fifteen (15) days following its collection".

Current supplies of stamp paper in the Central Bank of Honduras are transferred at no cost to the Judicial Branch. The Supreme Court of Justice shall issue the respective regulations for the preceding articles".

Reform Article 53 of the Property Registry Law, contained in Legislative Decree No. 171 of December 30, 1974, which shall be read as follows:

The registration, annotation or cancellation of acts or contracts or proceedings that must be registered in accordance with law shall produce in favor of the Judicial Branch the payment of a service fee as follows:

• 1)

  When said value or amount does not reach ONE THOUSAND LEMPIRAS (L. 1,000.00), TWO LEMPIRAS (L. 2.00) shall be paid;

• 2)

  When the value of the act or contract is or exceeds ONE THOUSAND LEMPIRAS (L. 1,000.00), THREE LEMPIRAS (L. 3.00) per thousand;

• 3)

  In cases of preventive annotations, the calculation shall be made on the amount claimed in the respective lawsuit or the one appearing in the document that is to be annotated provisionally;

• 4)

  When the document subject to registration is of indeterminate value, TWENTY LEMPIRAS (L. 20.00) shall be paid;

• 5)

  For the cancellation of an entry, whatever the registered act, contract or document, TEN LEMPIRAS (L. 10.00) shall be paid. For each of the following sheets FIVE LEMPIRAS (L. 5.00); and,

• 6)

  For certification of the non-existence of an entry in the Registry, FIVE LEMPIRAS (L. 5.00). The funds collected for services shall be for the Judicial Branch".

Reform Article 5 of the General Environmental Law, contained in Decree No. 104-93 of May 27, 1993 and its Amendments, by adding the following paragraphs:

... ... ... ... A tariff is established for the issuance of the Environmental License that shall be granted prior to the execution of projects, industrial facilities or any other public or private activity. The charge for the issuance of the license shall be made in accordance with the amount of investment made according to the following scale: AMOUNT OF INVESTMENT MADE TARIFF From L. 0.01 to L. 200,000.00............ From L. 200,000.01 to L. 1,000,000.00............ From L. 1,000,000.01 to L. 20,000,000.00........... From L. 20,000,000.01 onwards........................ 1% 0.50% 0.05% 0.02% Once the requirements for obtaining the license have been met, payment must be made in advance in the General Treasury of the Republic by means of the Official Payment Receipt form. The validity shall be for two (2) years from the date of its issuance and for its renewal a sum equivalent to fifty percent (50%) of the value of said license shall be paid, in accordance with the amount of investment reached or made at the time of renewal. In the case of companies that are operating and for which the mandatory environmental impact assessment has not been carried out, they are obliged to perform it, paying to the State only the expenses that this activity occasions.

Reform Articles 20, 87, 89, 92, 93 and 94 of Decree No. 34 containing the Law on Population and Migration Policy of September 24, 1970, which shall read as follows:

Foreign nationals, over eighteen (18) years of age, who enter the country to settle as residents shall be obliged to register. Foreign nationals in transit, tourists and those having special authorization to remain in the country are excepted. The foreign national who fails to comply with the obligation to register within one month from the date of having been granted the residency certificate shall incur a fine of FIVE THOUSAND LEMPIRAS (L. 5,000.00), which shall be imposed by the General Population Directorate, without prejudice to compliance with what is prescribed regarding registration.

Every official or employee of the migration services is obliged to ensure compliance with this Law; consequently, they must bring to the knowledge of the migration authorities any reports they have concerning clandestine entry of foreign nationals. Failure to do so shall result in a fine of FIFTEEN THOUSAND LEMPIRAS (L. 15,000.00), in addition to the cancellation of the appointment agreement or contract, without prejudice to the corresponding criminal action.

A fine of FIFTEEN THOUSAND LEMPIRAS (L. 15,000.00) shall be imposed on persons who assist directly or indirectly in the commission of the infractions punished under this Law.

A fine of FIVE THOUSAND LEMPIRAS (L. 5,000.00) shall be imposed on foreign nationals who, having been ordered their expulsion, refuse to leave or re-enter without authorization into the national territory. Those who have been expelled may only be readmitted by express agreement of the Secretariat of State in the Offices of Governance and Justice.

Shipping, air or land transport companies that transport foreign nationals into the country without their migration documentation shall be sanctioned with a fine of TWENTY-FIVE THOUSAND LEMPIRAS (L. 25,000.00) per passenger, without prejudice that the foreign national be returned to the place of origin at the expense of the offending company, in accordance with the terms of Article 33 of this Law.

A fine of FIFTY THOUSAND LEMPIRAS (L. 50,000.00) shall be imposed on those responsible for introducing foreign nationals into the country in violation of the provisions of this Law. If the offender has entered into a colonization or immigration contract with the Government, double the fine provided shall be imposed for each foreign national illegally introduced. The pecuniary sanctions established in this Law shall be imposed by the General Population Directorate, after giving the alleged offender a hearing, without prejudice to the corresponding criminal actions and the payments shall be made using the Official Payment Receipt form in the General Treasury of the Republic or in an authorized banking agency.

Reform the second paragraph of Article 8 of the Law on Foreign Exchange Income from Exports, contained in Decree No. 108-90 of September 20, 1990, which shall read as follows:

... ... ... When exporters fail to comply with what is prescribed in the preceding paragraph, a fine equivalent to one percent (1%) per month or fraction of delay shall be imposed on them on the quantities not entered and not sold. Without prejudice to the foregoing, they shall be required to, within a period not exceeding thirty (30) days, proceed to enter and sell the foreign currency; failure to do so shall result in the crime of disobedience to authority, in accordance with what is prescribed in the Penal Code. In case of recurrence, the pecuniary sanction established in this Article shall be doubled. All exporters who have pending files or who have not paid the respective fine shall have applied what is established in the preceding paragraph at the moment of the entry into force of this Decree.

Reform Article 1 of Decree No. 119-97 dated September 2, 1997, which shall read as follows:

To exempt from the payment of tariff taxes applied to the importation, the production and consumption tax and any other tax to which petroleum derivatives and fuels other than petroleum that the National Electricity Enterprise (ENEE) acquires and private sector energy generating companies that sell their production to the National Electricity Enterprise (ENEE) or directly provide the public with the service with authorization from the State are subject. The Secretariat of State in the Office of Finance shall supervise and control the use of this exemption and shall issue the respective resolutions.