Honduras: higher witholding
Thursday, February 21, 2013
To generate more revenue, Honduran tax authorities have increased the rate of withholding on amounts paid to non-residents, in connection with various business activities.
The rate now is 25%, following the entry into force last December, of amendments to the Law on Taxation of Foreigner’s Income.
The previous rate was 10%.
Among the activities subject to the higher rate, are fees and salaries paid to non-residents, income from real and movable property, mining royalties, and amounts paid for the use of intellectual property.
A rate of 10% continues to apply, in the case of income derived from other sources, including dividends paid by a Honduran subsidiary to foreign shareholders, insurance premiums, and bond interest.
Retention rules apply to both natural and legal persons.
For more information, please contact Jorge Brizuela at jbrizuela@consortiumlegal.com, or (504) 2221-1002.