Honduras Corporate Tax Guide 2026

Overview — Corporate Tax in Honduras

Corporate tax in Honduras is governed by the Ley del Impuesto Sobre la Renta and administered by the Servicio de Administración de Rentas (SAR). A company is tax resident if it is incorporated under Honduran law or if its place of effective management is in Honduras. Resident companies are taxed on worldwide income; non-resident companies with a permanent establishment are taxed on Honduras-source income only. Companies must register for tax with SAR and obtain a Taxpayer Identification Number (RTN). The tax year aligns with the calendar year. Annual returns are due by 31 March of the following year.

Standard Corporate Tax Rate — 25%

The standard CIT rate for resident companies in Honduras is 25% of chargeable profits. Non-resident companies with a permanent establishment in Honduras are also taxed at 25% on Honduras-source income. Taxable profit is computed as gross revenue less allowable deductions including operating expenses, depreciation, interest costs (subject to thin capitalisation rules), and losses carried forward. Losses may be carried forward for up to 4 years. Capital gains are included in ordinary income and taxed at the standard CIT rate.

Small Business Rate — 10%

Small businesses with annual gross income not exceeding HNL 1,000,000 may qualify for a reduced CIT rate of 10%. To qualify, the company must be engaged in qualifying activities (commerce, services, or industry) and comply with simplified tax regime requirements. The reduced rate is designed to encourage small business formalisation and reduce the tax burden on micro and small enterprises. Businesses must apply for this regime with SAR and meet ongoing compliance obligations.

Branches of Foreign Companies

Foreign companies operating through a branch in Honduras are taxed at 25% on Honduras-source profits, the same rate as resident companies. Branch profits remitted to the head office may be subject to additional withholding tax on profit repatriation. Foreign companies may prefer to incorporate a Honduran subsidiary for liability and tax planning purposes.

Depreciation & Capital Allowances

Honduras allows depreciation deductions for tax purposes using the straight-line method. Standard rates include:

• Buildings — 5% per annum
• Plant & machinery — 10–20% per annum
• Motor vehicles — 20% per annum
• Computers & office equipment — 33% per annum
• Intangible assets — amortised over useful life

Assets must be used in the business and depreciated from the year they are placed in service.

FAQs

What is the penalty for late filing of corporate tax returns?

Late filing attracts fines and interest. SAR imposes progressive penalties starting at HNL 5,000 plus 1% interest per month on unpaid tax.

Can foreign companies claim treaty relief?

Honduras has a limited network of double tax treaties. Treaty relief may reduce withholding tax rates on dividends, interest, and royalties paid to non-residents of treaty countries.

Is there a minimum tax for loss-making companies?

Honduras does not impose a minimum tax on loss-making companies. Losses may be carried forward for up to 4 years against future profits.

Disclaimer

This guide provides general information about Honduran corporate tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Honduran tax advisor or the Servicio de Administración de Rentas for advice specific to your situation. InvestmentKit does not provide tax advice.