Interpret Article 52 of the Law on Efficiency in Public Income and Expenditure
Congreso Nacional
- Decree: 40-2018
- Published: January 31, 2019
- Issuing body: Congreso Nacional
- Gazette: 34,859
- Category: Financial & Tax
Summary
This decree interprets Article 52 of the Public Income and Expense Efficiency Law to establish that certain income is not subject to income tax. Specifically, it exempts from taxation the interests, dividends, and gains from the sale of shares that come from loans or capital investments made between financial institutions and international development organizations, as long as these agreements aim to support national social investment plans.
Considerations
Whereas, in accordance with Article 351 of the Constitution of the Republic, the National Tax System shall be governed by the principles of legality, proportionality, generality, and equity in accordance with the economic capacity of the taxpayer.
Whereas, as part of the powers of the National Congress of the Republic, as established in Article 205, Attribution 1) of the Constitution of the Republic, it is within its purview to: create, decree, interpret, reform, and repeal laws; as well as what is provided in Decree No. 170-2016, Article 11, numeral 1) of the Tax Code, designating as the exclusive competence of the National Congress, the creation and modification of taxes, the elimination thereof, the definition of the taxable event generating the tax and customs obligation, the establishment of the tax base, the tax rate and the deadline for payment of the tax, the establishment of the accrual of sanctions, and the definition of the active subject and the taxpayer obligated.
Whereas, among the objectives established by the State is its commitment to obtaining social justice, economic development, citizen security, seeking to generate long-term benefits and the increase of positive impacts in the communities of our nation, through investment mechanisms.
Articles
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 thirtieth day of the month of August of the year two thousand eighteen. Legislative Branch DECREE No. 40-2018 THE NATIONAL CONGRESS: WHEREAS: That in accordance with Article 351 of the Constitution of the Republic, the National Tax System shall be governed by the principles of legality, proportionality, generality and equity in accordance with the economic capacity of the taxpayer. WHEREAS: That as part of the powers of the National Congress of the Republic, as established in Article 205 Attribution 1) of the Constitution of the Republic, it is incumbent upon it: to create, decree, interpret, reform and repeal laws; as well as what is provided in Decree No. 170-2016, Article 11, numeral 1) of the Tax Code, designating as exclusive power of the National Congress, the creation, modification of taxes, suppress the same, define the taxable event that generates the tax and customs obligation, establish the taxable base, the rate and the deadline of the tax, establish the accrual of sanctions and define the active subject and the obligated taxpayer. WHEREAS: That part of the objectives set forth by the State is its commitment to obtaining social justice, economic development, citizen security, seeks to generate long-term benefits and the increase of positive impacts in the communities of our nation, through investment mechanisms. THEREFORE, IT DECREES:
Interpret Article 52 of the LAW OF EFFICIENCY IN INCOME AND PUBLIC EXPENDITURE, contained in Decree No. 113-2011, dated June 24, 2011 and published in the Official Gazette "La Gaceta" on July 8, 2011, which should be understood in the following manner:
For purposes of what is stated in Article 52 of the LAW OF EFFICIENCY IN INCOME AND PUBLIC EXPENDITURE, the following are considered non-taxable income and therefore not subject for purposes of the calculation established in Articles 5 numerals 5) and 7), 10 and 22 of the LAW ON INCOME TAX, contained in Decree-Law No. 25 dated December 21, 1963, nor for what is stated in Article 22-A of Decree No. 278-2013 dated December 21, 2013, containing the LAW FOR THE REORGANIZATION OF PUBLIC FINANCES, CONTROL OF EXEMPTIONS AND ANTI-EVASION MEASURES and its reforms, those income that has been received in the form of interest, dividends, purchase and sale of shares, originated by the placement of loans or capital contributions, which had their origin by virtue of the subscription of agreements between regulated banking or financial institutions with banks or international development organizations or special purpose vehicles that they use for such investments and that said agreements be subscribed with the aim among others, the development of national social investment plans and programs.
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 second day of the month of May of the year two thousand eighteen. MAURICIO OLIVA HERRERA PRESIDENT JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY SALVADOR VALERIANO PINEDA SECRETARY To the Executive Branch Therefore: Let it be executed. Tegucigalpa, M.D.C., November 9, 2018. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE OFFICE OF EDUCATION MARCIAL SOLÍS PAZ The Gazette ANTONIO CÉSAR RIVERA CALLEJAS PRESIDENT JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY ROSSEL RENÁN INESTROZA MARTÍNEZ SECRETARY To the Executive Branch Therefore: Let it be executed. Tegucigalpa, M.D.C., of 2018 JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE OFFICE OF FINANCE
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