Global Tax Alert | 5 June 2013

Honduras releases details of tax amnesty program

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On 20 May 2013, Decree No. 71–2013, approving a tax amnesty program (the Decree), was published in the Official Gazette No. 33,128. Generally, the amnesty period began on 20 May 2013 and ends on 31 December 2013.

Amnesty is granted to all taxpayers (legal entities and individuals) with pending tax controversies or litigation at the administrative or judicial levels in relation to taxes of any nature and irrespective of the collecting authority – with the exception of taxes related to cell phone activities owed to so-called municipal corporations, which will be subject to a specific treatment.

Amnesty is also granted to all taxpayers (legal entities and individuals) that have not complied with their reporting and payment obligations vis-à-vis the State as of 31 December 2012. This amnesty is available to taxpayers that have not been subject to a tax examination or notified of an impending one over gross income reported in their income tax returns for tax years 2008, 2009, 2010 and 2011. It is not available to taxpayers who are in arrears on tax payments or whose income tax returns contain omissions. Taxpayers who apply for this amnesty will not be subject to subsequent tax examinations on the tax years covered. Prior to applying for the amnesty, taxpayers who are in arrears on tax payments must pay their outstanding balance of taxes due. Eligible taxpayers must make a payment of 1% over the highest amount of annual gross income they reported in this 2008-2011 period.

Taxpayers who pay their outstanding balance of taxes due will be granted a waiver on the related late payment interest, fines, charges and surcharges accrued up to 31 December 2012.

Additionally, the Decree authorizes the Social Security Administration and the National Institute for Professional Development (Instituto Nacional de Formación Profesional) to grant amnesties on late payment interests, fines, charges and surcharges applicable to individuals and legal entities as a result of their being in arrears on payments of employers/employees contributions. This amnesty covers late payment interests, fines, charges and surcharges accrued from 2000 to 1 October 2012, and lasts six months, beginning 20 May 2013.

For additional information with respect to this Alert, please contact the following:

EY, S.A., San José, Costa Rica
  • Randall Oquendo
    +50 622 089 800
    randall.oquendo@cr.ey.com
Ernst & Young LLP, Latin American Business Center, Houston
  • Priscila Maya
    +1 713 750 8698
    priscila.maya@ey.com

EYG no. CM3505