Since March, the State of Honduras has adopted fiscal measures aimed at supporting the country’s economic sector and thus support, above all, the small and medium enterprises from the catastrophic effects of the COVID-19 Pandemic, due to the closure of all sectors of the economy, with some exceptions, such as basic service companies (gas stations, supermarkets and pharmacies).
On June 27, the National Congress issued a new decree, 79-2020, published on that same date in the Official Gazette and by virtue of which an extension is granted to small and medium taxpayers of the following formal and material obligations:
- Affidavit of Income Tax for natural persons.
- Affidavit of Income Tax, Solidarity Contribution and Net Assets for legal entities.
- Specific Single Income Tax on the Rent or Rental of Homes or Apartment Buildings;
- Social Contribution of the Cooperative Sector;
- Contribution of the Social Sector of the Economy;
- Special Contribution on Educational Operation Surpluses.
The extension is granted until August 31, 2020 and applies only to small and medium entrepreneurs who have not carried out any type of economic activity in whole or in part.
- In the same way, this Decree modifies the payment dates of the first three (3) installments corresponding to the fiscal period 2020 and which must be calculated on 75% of the Income Tax Amount, determined based on the tax declared in the period fiscal 2019, and they are extended as follows:
- First installment until September 30, 2020.
- Second Installment until November 30, 2020
- Third installment until January 31, 2021.
- The extension will be two months from the date on which payment would normally have had to be made by those taxpayers who have authorized special tax periods.
- A Municipal Tax Amnesty is also granted until December 31, 2020, to natural and legal persons on the payment of interest, fines and surcharges caused by the delay that administrative or judicial proceedings are accumulated to May 31, 2020 by the non-compliance with payment of all municipal taxes and fees, and the Municipality may establish payment plans outside the period of validity of the provisions of the Decree.
Likewise, another series of measures have been published that are expected to help to alleviate the economic situation of the companies that have had to remain without operation. Such is the case of the statement issued by the Property Institute, where it is indicated that the payment of the Single Vehicle Tax for the period 2020 that began to apply from July 01, may be made through payment plans or in a single payment, without incurring in fines, as long as it is made before December 31, 2020. For the transportation sector, payments may be deferred for up to 12 months.
Managing Partner
García & Bodán
Honduras