B. Estate and gift taxes
Honduras does not impose estate or gift taxes. However, estates may be taxed as ordinary taxpayers if they derive income before distributions of assets are made to the beneficiaries.
C. Social security
The information below applies to all companies.
Sickness and Maternity Contribution. The contribution rates for the Sickness and Maternity Contribution (Enfermedad y Maternidad) are 3.5% for the employer, 2.5% for the employee and 0.5% for the government. The contribution is calculated on a maximum monthly salary of HNL11,109.30 (approximately USD445).
Old Age, Invalidity and Death Contribution. The contribution rates for the Old Age, Invalidity and Death Contribution (Vejez, Invalidez y Muerte) are 3.5% for the employer, 2.5% for the employee and 0.5% for the government.
The contribution is calculated on a maximum monthly salary of HNL11,109.30 (approximately USD445).
Professional Risk Contribution. The contribution rate for the Professional Risk Contribution (Riesgo Profesional) is 0.2% and is only applicable for the employer.
The contribution is calculated on a maximum monthly salary of HNL11,109.30 (approximately USD445).
Private Contribution Regime — Social Housing Fund. The contribution rate for the Private Contribution Regime – Social Housing Fund (Régimen de Aportaciones Privadas – Fondo Social para la Vivienda) is 1.5% each for the employer and employee.
The contribution is calculated in the following manner:
• Monthly salary minus the floor amount of the of Old Age, Invalidity and Death Contribution is multiplied by 1.5%.
D. Tax filing and payment procedures
Employers are responsible for withholding income taxes and social security contributions from employees’ salaries on a monthly basis. Employees are not required to file an annual income tax return if their only source of income is employment compensation. Nonresidents are not required to file an annual income tax return if their income tax liability has been satisfied through withholding at source.
The ordinary tax year runs from 1 January to 31 December. Returns must be filed and any tax liabilities due must be paid by 30 April of the year following the tax year. However, in certain specified circumstances, taxpayers may elect a special tax year. Self-employed individuals and individuals with a trade or business must make advance income tax payments.
E. Double tax relief and tax treaties
Honduras has not entered into tax treaties with other countries. However, Honduras has entered into tax information and exchange agreements with Ecuador and the United States.