Because of the extension, taxpayers still have time to apply for the tax amnesty. Taxpayers should review the Decree to determine if they are eligible for the amnesty program.

On December 31, 2019, the Honduras Government published in the Official Gazette the national budget for 2020, which included a provision to extend the deadline for taxpayers to apply for the tax amnesty program established in Executive Decree 51-2018 from January 1, 2020 to March 31, 2020.

In general, the amnesty program allows taxpayers to file tax returns and information returns, and to modify returns already filed without the imposition of penalties, surcharges and interest on taxes incurred up to December 31, 2017.

Additionally, taxpayers can obtain a certificate or final stamp from the tax authorities by making a payment of 1.5% of the gross income for the year that registered the highest gross income according to the annual income tax returns for the years 2013, 2014, 2015 and 2016 (Regularization Period).

Taxpayers must file a request with the tax authorities (and customs authorities if the taxpayer has filed customs returns) to make this 1.5% payment and obtain the certificate or final stamp. Once the taxpayer pays the 1.5%, the tax authorities (and custom authorities, if applicable) can no longer carry out an audit for the tax years included in the Regularization Period.

———————————————