Extension of Income Tax 2019 and Advance Payments (27-06-2020)
Congreso Nacional
- Decree: 79-2020
- Published: June 27, 2020
- Issuing body: Congreso Nacional
- Gazette: 35,296
- Category: Health
Summary
This law extends deadlines for small and medium taxpayers to file their taxes (income tax and others) until August 2020, and reduces 2020 advance tax payments to 75%. It also authorizes municipalities to forgive fines and interest on municipal taxes overdue until May 2020, relief measures due to the COVID-19 pandemic.
Considerations
Whereas Article 351 of the Constitution of the Republic establishes that, "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 during the present year, a pandemic caused by the disease known as "COVID-19" has occurred, which has obligated the State of Honduras to adopt extraordinary measures to reduce the risk of propagation and thus safeguard the life and health of persons.
Whereas in view of the economic impact caused by the pandemic, it is necessary to enact measures to alleviate the conditions of tax obligors, so that they may maintain their operations and stimulate the economy.
Whereas it is within the competence of the National Congress, through tax and customs laws, to create, modify or suppress taxes, as well as to establish the obligation to submit declarations and self-assessments related to the tax obligation.
Whereas it is necessary to grant mechanisms that promote the payment of municipal taxes to citizens who have been unable to make such payments during ordinary periods, through the waiver, until December 31, 2020, of the payment of interest, fines and surcharges, accrued due to arrears that through administrative or judicial means are accumulated as of May 31, 2020, in the payment of all municipal taxes, rates and surcharges and any other type of surcharges caused by arrears, the Municipality being able to establish payment plans outside the period of validity of this Article.
Whereas in accordance with Article 205 Attribution 1) of the Constitution of the Republic, it is within the authority of the National Congress: To create, decree, interpret, reform and repeal laws.
Articles
An extension is granted to Obligated Taxpayers categorized as small and medium contributors for the presentation and payment of the Income Tax Return (ISR), Solidarity Contribution and Net Assets; as well as for the presentation and payment of declarations of the Social Sector Contribution of the Special Income Tax on Rental or Lease of Dwellings or Apartment Buildings, Special Contribution on Operating Surpluses obtained by Private Universities, Preschool, Primary and Secondary Schools and Educational Institutes; and the Social Contribution of the Cooperative Sector; all corresponding to the 2019 fiscal period, of which both their formal and material obligations must be fulfilled no later than the thirty-first (31) of August of the year 2020. In those cases in which the Obligated Taxpayer categorized as Medium or Small Contributor has authorized a special fiscal period as established in the Income Tax Law, an extension of two (2) additional months is granted counted from the date on which they normally should comply with their formal and material obligations described in the preceding paragraph.
The extension granted in the previous Article is applicable only to those Obligated Taxpayers who, during the period of restriction of constitutional guarantees decreed by the Executive Branch until the date of entry into force of this Decree, have not developed any type of economic activity. Therefore, all those obligated taxpayers categorized as medium or small contributors who during the period of time indicated above have developed economic activity whether in full or in part, must comply with the formal and material obligations as provided in Article 1 of Decree No. 33-2020 which contains the LAW FOR ASSISTANCE TO THE PRODUCTIVE SECTOR AND WORKERS IN THE FACE OF THE EFFECTS OF THE PANDEMIC CAUSED BY COVID-19.
To reform Article 3 of Decree No. 33-2020, dated April 2 of 2020, published in the Official Gazette "La Gaceta" dated April 3 of 2020, in Edition No. 35,217, which contains the LAW FOR ASSISTANCE TO THE PRODUCTIVE SECTOR AND WORKERS IN THE FACE OF THE EFFECTS OF THE PANDEMIC CAUSED BY COVID-19, which must be read in the following manner: "ARTICLE 3. The installments of the Income Tax (ISR) Advance Payments corresponding to the 2019 fiscal period must be calculated on seventy-five percent (75%) of the amount of Income Tax (ISR) determined in the 2019 fiscal period, and the payment dates of the three (3) first installments are extended as follows:
- 1)
First installment, until September thirty (30) of 2020;
- 2)
Second installment, until November thirty (30) of 2020; and, 3. Third installment, until January thirty-first (31) of 2021. In those cases of obligated taxpayers who have authorized special fiscal periods as established in the Income Tax Law, the expiration dates for payment of the three (3) first installments of the Advance Payments corresponding to the 2019 fiscal period shall be extended by two (2) additional months from the date on which they normally should have made the payment".
To authorize the municipalities to grant Municipal Tax Amnesty, until December 31 of the year 2020, to natural or legal persons, for the payment of interest, fines and surcharges caused by default that by administrative or judicial means has accumulated as of May 31 of 2020, for non-compliance in the payment of all municipal taxes and fees, with the Municipality being able to establish payment plans outside the period of validity of this Article.
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, held in a Virtual manner, on the Sixteenth day of the month of June of Two Thousand Twenty. ANTONIO CÉSAR RIVERA CALLEJAS PRESIDENT JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY ROSSEL RENÁN INESTROZA MARTÍNEZ SECRETARY To the Executive Branch. Accordingly: Execute it. Tegucigalpa, M.D.C., June 27, 2020. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE OFFICE OF THE PRESIDENCY EBAL JAIR DIAZ LUPIAN
Related laws
- Decree 128-2019 by means of which the Executive Power is authorized to issue Sovereign Bonds of the Republic of Honduras through the Secretariat of State in the Office of Finance (SEFIN) — Decree 128-2019 authorizes the Ministry of Finance (SEFIN) to issue sovereign bonds from Honduras in international markets for up to 900 million dollars to finance state projects. This measure allows the government to obtain resources for public investment and external debt management. (Decree 128-2019, 2020)
- Decreto Legislativo No. 79-2020 — Prórroga de plazos tributarios y amnistía municipal ante pandemia COVID-19 — This decree extends deadlines for small and medium-sized taxpayers to pay 2019 taxes until August 2020, reduces 2020 payments to 75% and extends payment dates. It also authorizes municipalities to forgive interest and penalties on overdue municipal taxes before May 2020, seeking to ease the economy affected by the COVID-19 pandemic. (Decree 79-2020, 2020)
- Income Tax Law - Consolidated Text (25-06-2018) — This law establishes an annual income tax that taxes all income from work, capital, or business activities for individuals and companies in Honduras. It applies to residents and foreigners earning income within the country, with rates varying by income type and whether the taxpayer is a natural or legal person, allowing deductions for necessary expenses to generate that income. (Decree 25-1964, 2018)
- Decreto Legislativo — Disposiciones Generales del Presupuesto General de Ingresos y Egresos de la República, Ejercicio Fiscal 2019 — This decree establishes the rules for using Honduras's public budget in 2019. It defines limits on administrative expenses (maximum 10%), allows changes to projects with technical justification (maximum 3 amendments), regulates how public institutions hire staff, pay salaries, and manage money from international loans and donations. It aims to ensure that state funds are used efficiently and transparently.
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