Law on the Contribution of the Social and Solidarity Economy Sector
Congreso Nacional
- Decree: 131-2018
- Published: February 26, 2019
- Issuing body: Congreso Nacional
- Gazette: 34,881
- Category: Financial & Tax
Summary
This law allows social economy organizations (cooperatives, associations) to settle past tax debts without penalties within 4 months. Starting in 2019, they are exempt from income tax but must pay an annual "social contribution" of 15% of net profits, intended for social development.
Considerations
Whereas, in accordance with Article 351 of the Constitution of the Republic, the tax system shall be governed by the principles of legality, proportionality, generality, and equity, in accordance with the economic capacity of the taxpayer.
Whereas, Article 1 of Decree No. 193-85 dated October 31, 1985, published in the Official Gazette "La Gaceta" on January 11, 1986, containing the LAW OF THE SOCIAL SECTOR OF THE ECONOMY, declares of public interest the organization, promotion, and development of the Social Sector of the Economy, to contribute to humanizing the economic and social development of the country, in accordance with the principles of efficiency in production, social justice in the distribution of wealth and national income, democratic and harmonious coexistence in the diverse forms of property and enterprises that support the Economic System of Honduras, in accordance with the Constitution of the Republic.
Whereas, it is necessary that natural or legal persons that are part of the Social Sector of the Economy regularize their tax situation before the Tax Authority.
Whereas, in accordance with Article 205, Attribution 1) of the Constitution of the Republic, it is the power of the National Congress to create, enact, interpret, reform, and repeal laws.
Articles
Grant a period of four (4) months counted from the effective date of this Decree for legal persons that are operating under the LAW OF THE SOCIAL SECTOR OF THE ECONOMY not included in Decrees No. 53-2015 dated April 29, 2015 and 92-2015 dated September 8, 2015, to comply with their corresponding tax and customs obligations for the fiscal periods 2014, 2015, 2016, 2017 and 2018 free of payment of fines, interest and surcharges accrued as of the effective date of this Decree.
As of Fiscal Year 2019, legal persons that are operating under the LAW OF THE SOCIAL SECTOR OF THE ECONOMY not included in Decrees No. 53-2015 and 92-2015 are not subject to the payment of Income Tax and related and collateral taxes. The exemption from the payment of Income Tax does not exempt them from the duties of submitting declarations, withholding taxes as applicable and others established in other special laws on tax or customs matters. For the purposes of application of this Law, Income Tax shall be understood to mean that regulated in the Income Tax Law and its amendments.
"THE SOCIAL CONTRIBUTION OF THE SOCIAL SECTOR OF THE ECONOMY" is hereby created, which must be paid annually within the three (3) months following the close of the previous fiscal period, as applicable, for legal persons that are operating under the Law of the Social Sector of the Economy not included in Decrees No. 53-2015 dated April 29, 2015 and 92-2015 dated September 8, 2015. The Social Contribution is fifteen percent (15%) of net surplus or net profits generated in the previous fiscal period, understood as net surplus or net profit that which comes from the difference of total income, minus: 1) Total expenses directly related to the generation of such income; and, 2) Funds for:
- a)
Capitalizations;
- b)
Reserve for losses or legal reserves;
- c)
Housing, education and health;
- d)
Social provision and training; and,
- e)
Duly documented donations. Income received by a legal person that operates under the Law of the Social Sector of the Economy not included in Decrees No. 53-2015 and 92-2015, in the form of dividends or any other form of participation in the surplus or profits of another legal person that operates under the aforementioned laws, shall not be subject again to the Social Contribution of the Social Sector of the Economy. For this purpose, legal persons shall maintain separate account of the amounts received for such purpose, with indication of the source to which they correspond. The Social Contribution established in this Article shall apply from Fiscal Year 2019 and shall be paid in the manner established for such purposes by the Tax Administration. The collection, supervision and collection of the Social Contribution of the Social Sector of the Economy shall be the responsibility of the Tax Administration.
In case of non-compliance with this norm regarding the Social Contribution of the Social Sector of the Economy, regulated in this Decree, the sanctions established in the current Tax Code shall be applied.
Within a period of six (6) months counted from the day of publication of this Decree, all legal persons that operate under the Law of the Social Sector of the Economy, not included in Decrees No. 53-2015 and 92-2015, must register in the unified registry of the Institute of Property (IP), created by Decree No. 46-2016 dated April 26, 2016, published in the Official Gazette "La Gaceta" on April 27, 2016.
The State Secretary of the Finance Office within a period not exceeding twenty (20) business days from the effective date of this Decree, must issue the Regulation for the application of the provisions of this Law.
This Decree shall enter into effect 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 seventh day of the month of November of two thousand eighteen. MAURICIO OLIVA HERRERA PRESIDENT JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY SALVADOR VALERIANO PINEDA SECRETARY To the Executive Power Therefore: Let it be executed. TEGUCIGALPA, M.D.C., December 28, 2018. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE STATE SECRETARY OF THE FINANCE OFFICE.