Honduras enacted a new tax amnesty program for 2016. Taxpayers should review Decree 168-2015 to determine if they are eligible to benefit from the amnesty.

Honduras published in the Official Gazette on January 6, 2016, Decree 168-2015 (the Decree),establishing a new amnesty program. The Decree was enacted on December 17, 2015, and is effective December 18, 2015.

Amnesty is granted to all taxpayers and withholding agents, as well as municipalities and associations that:

— Have failed to submit or failed to submit in a timely manner the following information returns: (i) Annual Sales Tax Credit Return¹ (ii) Monthly Withholding Tax Information Return² and (iii) 4% Tourism Tax Return³

— Have failed to report a change in their tax domicile to the Tax Authorities

— Have failed to submit administrative notices such as: (i) beginning of operations, (ii) termination of operations, and (iii) change of company name

The Decree allows taxpayers, withholding agents, municipalities and associations to file their missing information returns, update their tax domicile and file their missing administrative notices without paying fines accrued up to December 31, 2015.

The amnesty ends on March 31, 2016.

———————————————

———————————————
ENDNOTES

¹ In Spanish Declaración Anual de Créditos del Impuesto de Ventas

² In Spanish Declaración Mensual de Retenciones

³ In Spanish Declaración Informativa de Tasa Turística del 4%.