Decree 180-2011. Reform of the Law Strengthening Revenue
Congreso Nacional
- Decree: 180-2011
- Published: November 11, 2011
- Issuing body: Congreso Nacional
- Gazette: 32,666
- Category: Financial & Tax
Summary
This law exempts municipalities from paying taxes when purchasing work vehicles and heavy equipment for maintaining streets and roads. It allows local governments to manage these purchases without paying taxes, provided they request the exemption from the Finance Ministry and clearly specify which taxes they will not pay.
Considerations
Whereas Article 6 of the Sales Tax Law, contained in Decree No. 24 of December 20, 1963, as amended by Article 1 of the Law of Financial Balance and Social Protection, Decree No. 194-2002 dated May 15, 2002, establishes that the general tax rate is twelve percent (12%) on the taxable base value of imports and the sale of goods and services subject thereto except for legal exemptions.
Whereas on April 28, 2011 this National Congress approved Decree No. 48-2011 which grants authority to the two hundred ninety-eight (298) Municipalities for the purchase of work vehicles, machinery and equipment for the maintenance of secondary and tertiary roads, with the intent of the Legislature being to exempt the Municipalities from all taxes that burden the imports and purchases of work vehicles and heavy equipment.
Whereas Article 152 of the Tax Code establishes that laws organizing tax exemptions must clearly and precisely indicate the levies subject to being granted exemption.
Whereas it is the authority of the National Congress to create, enact, reform, interpret and repeal laws.
Articles
To reform by addition Article No. 59 of Decree No. 17-2010 dated March 28, 2010, issued by the National Congress, which contains the LAW FOR STRENGTHENING OF REVENUES, SOCIAL EQUITY AND RATIONALIZATION OF PUBLIC SPENDING, by adding a final paragraph, which shall read as follows:
:- ... The purchase and leasing of motor vehicles is prohibited for the duration of the current emergency, including all institutions of the public sector, except those strictly related to the areas of health, security, education, tax administration and social action projects, without prejudice to what is established in International Agreements. Municipalities are not included in this prohibition and therefore are exempt from payment of all types of taxes, by virtue of being autonomous entities, being authorized to purchase work vehicles for their municipal management, or, in the case, for the purchase of heavy equipment for the maintenance of streets or secondary and tertiary access roads, and must appear before the State Secretary of the Office of Finance to manage each purchase, expressing with clarity and precision the tax obligations whose payment exemption is requested.
This Decree shall enter into force as of the day of its publication in the Official Gazette La Gaceta. Done in the city of Tegucigalpa, municipality of the Central District, in the Session Hall of the National Congress, on the fifth day of the month of October of two thousand eleven. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT RIGOBERTO CHANG CASTILLO SECRETARY ELISEO NOEL MEJÍA CASTILLO SECRETARY To the Executive Power. Therefore: Let it be executed. Tegucigalpa, M.D.C., October 20, 2011 FORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC THE STATE SECRETARY OF THE OFFICE OF FINANCE. WILLIAM CHONG WONG
Related laws
- 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 — Presupuesto General de Ingresos y Egresos de la República para el Ejercicio Fiscal 2020
- Decreto Legislativo No. 17-2010 — Ley de Fortalecimiento de los Ingresos, Equidad Social y Racionalización de las Finanzas (Decree 17-2010, 2025)
- Decreto Legislativo No. 75-1911 — Ley de equilibrio financiero y protección social — This law establishes how the State collects and manages its financial income. It allows public institutions (hospitals, schools, fire departments, etc.) to keep a percentage of what they charge for their services to spend directly, without sending everything to the National Treasury. It also authorizes the Government to take on debt and manage international loans while keeping public finances stable and aligned with national development plans. (Decree 75-1911, 2023)
- Decreto Legislativo — Ley de Presupuesto General de Ingresos y Egresos de la República, Ejercicio Fiscal 2024 — This 2024 budget law establishes how the Honduran State collects and spends money. It orders that income from passports, migration services, electricity, and tourism finance specific institutions; authorizes borrowing to cover government needs; regulates public employee salaries so they don't exceed those of their superiors; and requires returning unused funds to the National Treasury.