Honduras: Double Taxation of Income Eliminated

Congress has passed the elimination of the provision that payments be made by natural and legal persons when they are shareholders in corporate groups.

Wednesday, November 26, 2014

According to the liberal congresswoman Gabriela Núñez "... The law is properly applied to individuals who receive dividends as when they receive a profit they must pay their taxes; however, when it relates to a company it becomes a double taxation because the company, when it receives dividends, pays the tax and then when it distributes the dividends among its own shareholders, it once again incurs a tax liability of 10%, which is considered prohibited in the Tax Code. "

Laprensa.hn reports that "... According to Article 25: It is envisaged that dividends or any other form of participation in profits or reserves that have been taxed in accordance with the provisions of this Article shall not be subject to the 10% retention of on dividends when the legal entity receiving them distributes dividends or any other form of shares in profits or reserves. "



More on this topic

Double Taxation: Agreement between Costa Rica and Mexico

May 2019

Since April 21, the agreement that avoids double taxation and mitigates its effects has been in force, as well as helping to eliminate barriers to trade and prevent tax evasion.

On March 21, Law 9644 was published in La Gaceta, corresponding to the agreement between the Republic of Costa Rica and the United Mexican States, which avoids the double taxation of income and wealth taxes.

Costa Rica and Mexico Abolish Double Taxation

March 2019

With the new agreement published in the official newspaper La Gaceta, double taxation is avoided and its effects mitigated, as well as helping to eliminate barriers to trade and prevent tax evasion.

On March 21, Law 9644 was published in La Gaceta, corresponding to the agreement between the Republic of Costa Rica and the United Mexican States, which avoids the double taxation of income and wealth taxes.

Costa Rica and Germany Eliminate Double Taxation

January 2016

The Legislative Assembly of Costa Rica has approved an Agreement with the Federal Republic of Germany to avoid double taxation of income and wealth.

From a statement issued by the Legislature:

The deputies approved in the process of their Second Debate, record 19122, Approval of Agreement between the Republic of Costa Rica and the Federal Republic of Germany to avoid double taxation of income and wealth.

Changes in Costa Rica Regarding Double Taxation

December 2012

Those who make payments to countries which until now were exempt from double taxation will now have to take preventive measures, due to regulation changes.

According to a report by Deloitte the Legislative Assembly of Costa Rica on November 26 approved on first reading the draft law # 18602, and gave approval on second reading on 29 November, giving "a mortal blow to the current Article 61, Law of Income Tax, a legislation which allows the relief from double taxation on provision by taxpayers or local withholding agents of a request for full or partial exemption of tax remittances abroad when they make disbursements from Costa Rica for items such as dividends, interest and royalties (most common concepts) to countries like the USA, Mexico, Canada and in some cases to Spain, among other possible destinations remittance recipients provided in these foreign countries are not granted credit for the tax paid in our country. "

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