Submission of the Annual Informative Sworn Statement on Transfer Pricing in Honduras
The deadline for submitting the Annual Informative Sworn Statement on Transfer Pricing for the 2024 fiscal year in Honduras is approaching. This statement must be submitted by certain taxpayers who have engaged in commercial or financial transactions with related parties during the fiscal year.
Who is required to submit the Annual Informative Sworn Statement on Transfer Pricing?
The submission of this statement is mandatory for the following taxpayers:
- Individuals or legal entities categorized as medium or large taxpayers who have engaged in transactions with related parties.
- Individuals or legal entities who conduct operations with entities under special tax regimes.
- Individuals or legal entities who engage in transactions with related parties residing in tax havens.
- Individuals or legal entities classified as small taxpayers, but who have carried out transactions with related parties exceeding US $1,000,000 or its equivalent in lempiras.
What transactions need to be reported?
All commercial and financial transactions with related parties carried out during the corresponding fiscal year must be reported. The purpose of this report is to ensure that transactions between related parties are carried out at market prices, in accordance with the arm’s length principle.
What is the deadline for submitting the Annual Informative Sworn Statement on Transfer Pricing?
The deadline for submitting the Annual Informative Sworn Statement on Transfer Pricing is April 30 of the year following the fiscal year being reported, according to Article 31 of the Regulations of the Transfer Pricing Regulation Law (LRPT). In the case of taxpayers with a special fiscal period, the deadline is three months after the end of their fiscal year.
When must the Transfer Pricing Study or Documentation be submitted?
The Regulations stipulate that all taxpayers subject to Transfer Pricing rules must have a transfer pricing study to determine if transactions with related parties are conducted at market value. This study must be submitted before April 30 each year and must be available for submission upon request by the Tax Administration.
What should the Transfer Pricing Technical Study include?
The study must contain at least the following essential elements:
- Description of activities, functions, and risks undertaken.
- Details of the operations and documents used.
- Identification of related parties.
- Valuation methods used and comparable transactions.
It is crucial that taxpayers comply with this obligation on time to avoid penalties. Failure to submit the Annual Informative Sworn Statement on Transfer Pricing or providing false or incomplete information can result in severe penalties.
Godofredo Siercke
godofredo.siercke@garciabodan.com
Partner
García & Bodán
Honduras
