Honduras Tax Law refers to the legal framework and regulations governing taxation in Honduras. It encompasses various statutes, decrees, and administrative rules that dictate how individuals and businesses are taxed, the types of taxes levied (such as income tax, value-added tax, property tax, and others), tax compliance obligations, rates, exemptions, and penalties for non-compliance. The law aims to regulate revenue collection for the government while ensuring that the tax system is fair and equitable. It also outlines the rights and responsibilities of taxpayers, as well as the procedures for tax assessment, appeals, and disputes. Understanding Honduras Tax Law is crucial for both residents and foreign investors operating in the country, as it directly affects financial planning, business operations, and overall economic activity.
The tax system in Honduras, managed by the Servicio de Administración de Rentas (SAR), includes individual and corporate income taxes. Residents pay taxes on global income, whereas non-residents are taxed…