SMBs: Benefit Period Extended

In Honduras, Congress extended for two more years the validity of the Law to Support Micro and Small Enterprises, which grants benefits such as exemption from payment of income tax and other taxes.

Tuesday, December 3, 2019

To opt for the benefits granted by the law, interested parties must process their permits, national and municipal licenses for its operation, reports a statement issued by Congress.

From the National Congress statement:

November 28, 2019. To boost economic growth in Honduras, the National Congress approved the extension for two more years of the period of validity of the Law to Support Micro and Small Enterprises, which has welcomed more than three thousand companies.

The vice-president of the Legislative Chamber, Antonio Rivera Callejas presented the motion for the dispensation of two debates, so the decree was discussed in only one.

According to the reform approved this Thursday by the Legislative Power: "The beneficiaries of this Law are micro and small enterprises constituted or that are constituted, or those that have been operating informally and are formalized, complying with the provisions of this Law, within a period of twenty-four (24) months, counted from the entry into force of this Decree."

However, the beneficiaries of this Law, must apply for their permits, national and municipal licenses for its operation, if not done will not enjoy the benefits offered by the Law of Support to Micro and Small Enterprises.

More benefits

Merchants who are considered as micro or small enterprises will be exempt from the payment of Income Tax (ISR).

They will also be exempt from the Net Asset Tax and Temporary Solidarity Contribution.
The micro or small company will be free of the advance payment of one percent ISR but must be registered in a Registry of Exonerated in charge of the Ministry of Finance.

Micro or small companies will be exempt from the Personal Tax, Tax on Industries, Commerce and Services of the Municipal Corporations.

The beneficiaries of this Law for a period of three years shall be exempt from the payment of registration fees related to the act of incorporation of the company, municipal fees, charges for the issuance of administrative acts, licenses or other concepts necessary for its operation.

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