Honduras: Delays in Tax Refunds

The private sector has denounced that on top of the negative effect of the new tax of 1.5%, are delays in the payment of $19 million in tax refunds.

Wednesday, August 12, 2015

Added to this is the cost for companies of undergoing tax audits required by the Executive Directorate of Revenue (DEI) to justify their financial position and request an adjustment in the payment of 1.5% of income tax to be paid by those generating sales of over $456 thousand.

The complaint over the delay in tax rebates "... is well understood by the authorities of the Honduran Council of Private Enterprise (COHEP), who through the study 'Financial impact of 1.5% on corporate income tax arising from Decree 278-2013 and other tax practices of the DEI 'proved how helpless many of its members are. The available information is that 28 companies reported having 53 dossiers submitted to the DEI totalling 424.1 million lempiras ($19 million), which will take up to 18 months to be processed. "

Elheraldo.hn reports that the Cohep believes that "... if you add this to the financial impact on businesses for the 1.5% on top of taxes and the value of credit notes if they are resolved in the DEI it represents a sacrifice in working capital, the need to finance their own needs in order to maintain their operations, reducing their own profitability, postponing or canceling new investment and, in some cases, cutting staff or closing operations.

More on this topic

Honduras: 1.5% Tax on Income to Remain

November 2015

The Supreme Court has not ruled in favor of the union of private companies, which sought to suspend the collection of income taxes of 1.5%.

Businessmen from different sectors showed their discontent after the Supreme Court rejected the appeal by the Honduran Council of Private Enterprise (COHEP) and announced that the collection of the (ISR) tax will remain in place.

Honduras: Legal Action Over 1.5% Sales Tax

June 2014

The private sector has filed a constitutional complaint against Article 22-A of the Tax Act on income tax arguing that it distorts fundamental tax principles.

From a statement issued by the Honduran Council of Private Enterprise:

As entrepreneurs we have supported the planning processes of public finances to improve tax revenues and the controlling of public expenditure, which allow for the signing an agreement with the International Monetary Fund (IMF). Tax burdens should be clear and simple, non-discriminatory, fair and universal, as established by our constitutional system.

Honduras: Businessmen Resist Anti Evasion Law

June 2012

The Honduran Council of Private Enterprise says that reform of the Law on Income Tax is unconstitutional because it is confiscatory.

An article in Elheraldo.hn reports that "The Honduran Council of Private Enterprise (COHEP) argues that legislative approval of the Evasion Measures Act to income tax is unconstitutional, confiscatory and violates a judgment of the Supreme Court dated February 1, 2012. "

Honduras: Income Tax Increase In Effect

June 2011

With the publication in the official daily newspaper, a 1% increase on income tax (ISR) comes into force.

The amendment to the income tax law adopted by Congress applies only to companies with revenues in excess of $529 thousand (10 million lempiras). The increase will be applicable for the fiscal year beginning in 2011.

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