Honduras: New Tax Code Without Global Income

The amendment to the Tax Code, partially approved by Congress, omits the concept of "global income", and establishes "territorial income".

Friday, December 2, 2016

Latribuna.hn reports that "...The Bill for a new Tax Code was drafted by the government, employers and a sector in the social economy, and during the dissemination it was said that the change to "Territorial Income represents a setback in the fight against capital flight."

Presidential adviser Ebal Diaz "... defended the concept of "Territorial Income" explaining that it is difficult to collect taxes nationwide, even worse doing so from Honduran companies that generate profits in other countries. 'There is a reality ... it is very difficult to collect the taxes that have to be paid in the country ". Now 'imagine us going about pursuing the payment of taxes in other countries', " said the official to members of Congress during an open hearing."

Up to Article 44 of the reform, a green light was given to the bill for a new Tax Code, comprising exemptions, waivers, tax responsibility and liability, as well as joint and several liability, among other things.

More on this topic

Honduras: New Tax Code Announced

July 2016

A bill prepared by the Executive and the private sector includes the concept of a single tax and the creation of an administrative court for tax matters.

The bill must now be analyzed and approved by Congress. In addition to regulating exemptions, the new code creates the Superintendency of Tax and Customs and the Tax Administration Department.

Honduras: Consensus Over Tax Code

July 2016

The private sector and government have agreed on the basis of a bill to amend the Tax Code which will be sent to Congress for approval.

The draft law agreed between the business sector and the Hernández administration includes a single tax for small businesses. 

Costa Rica: Offshore Tax Profits

June 2016

The Government is once again bringing to the table the concept of global income, to force tax residents in the country to declare and pay taxes on profits earned abroad.

The Ministry of Finance has announced that "... they are working on a substitute text to a reform of income tax, which would mean a profound change to the initiative which is in Congress."This proposal is for tax any income generated from commercial activities outside of Costa Rica, by those tax residents who stay at least 183 days a year in the country.

Panama: Official Repeal of Worldwide Income Tax

January 2014

A law has been approved that repeals articles 2 and 3 of Act 120 of 2013 and restores the effect of Article 694 of the Tax Code relating to the principle of taxation of the income.

From a statement by the National Assembly:

With 45 votes in favor, 2 against and 0 abstentions, the plenary of the National Assembly approved on its third reading Bill 694, which repeals Articles 2 and 3 of Act 120 of 2013 and restores the effect of Article 694 of the Tax Code regarding the principle of taxation of income.

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