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18 feb 2024

Honduras Approves Tax Amnesty to Alleviate Municipal Debts

The government of Honduras has enacted Decree No. 5-2024, establishing a municipal tax amnesty aimed at alleviating the accumulated debts of taxpayers in municipal taxes, fees, and contributions.

Honduras Approves Tax Amnesty to Alleviate Municipal Debts

The decree, based on principles of efficiency in production and social justice, seeks to guarantee the dignification of work and the protection of human beings, as established by the country's Constitution.

According to the Decree, the amnesty will be valid until June 31, 2024, and will allow for the total or partial forgiveness of interests, fines, and surcharges generated by late payments of tax obligations accumulated until December 1, 2023. This measure applies to debts in both administrative and judicial processes, including those established through payment agreements.

Both natural and legal persons may benefit from this amnesty, being exempted from late payment interests, fines, charges, and surcharges, provided they pay their tax obligations within the period of validity of the decree. Furthermore, municipal authorities are authorized to establish payment plans of up to one year in duration, providing flexibility for taxpayers to meet their fiscal commitments.

An additional provision of the decree allows municipalities to grant discounts of up to twenty percent of the principal obligation amount, subject to approval by the respective Municipal Corporation. However, it is important to note that this amnesty does not include the payment of taxes, fees, and contributions generated after December 1, 2023.

This measure aims to incentivize compliance with tax obligations and provide economic relief to taxpayers, thus promoting the economic and social development of the country. The tax amnesty represents a significant step towards harmonizing the economic and social principles established in the Constitution of Honduras.

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