News

On Wednesday, March 8^th of this year, the president of Honduras, Juan Orlando Hernández signed an agreement with the new board of the Private Enterprise. This new decree aims to reduce, and in some cases eliminate, 1.5% of Income Tax currently paid by companies in the country. This will allow many Small and Medium Enterprises (MIPYMES) to continue operating and generating employment opportunities in the country. According to the COHEP (Honduran Council of Private Enterprise) it is estimated that there will be a tax relief of approximately One Thousand Three Hundred million lempiras for companies that pay 1.5% of Income Tax, and companies that have a gross income of less than Three Hundred Millions will no longer be subject to paying 1.5% or 0.75% tax, thus benefiting MIPYMES in the country. In addition, another benefit is that all those companies that earn more than Six Hundred Million Lempiras will pay 1% tax. Once this reform is approved by the National Congress, 1.5% of ISR ceases to be a confiscatory tax and becomes an anti-avoidance measure, generating new direct and indirect jobs and creating a positive scheme for the investor. With this new decree the MYPIMES will be the most benefited, since their payments will be reduced to zero. Also, the consequences will be seen in the clients and companies that the banks support, since it provides a better condition of competition and a lower tax burden. With the reform it is expected that by 2019 companies can reduce their taxes to 0.75% and 0.5% according to the income and the sector of the company. Likewise, greater investment is expected from employers with competitive taxes, thus generating more employment opportunities. Marcela Eufragio Aranda Associate García & Bodán Honduras