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13.4.3. Documentation Requirements

Disclosure Requirements

Taxpayers with controlled transactions in a tax year are required to submit details in the tax return, such as the amount of transactions, type of transactions, etc.

Further, taxpayers are required to file the Annual Transfer Pricing Informative return as follows:

  • For standard tax years ending in December, transfer pricing returns are required to be filed between 1 January and 30 April;
  • For  non-standard tax years (not ending in December), transfer pricing returns are required to be filed within 3 months from the end of the tax year.

Standard Documentation

The transfer pricing rules mandatorily require a taxpayer to maintain contemporaneous transfer pricing documentation. The transfer pricing documentation is required to be provided to the tax authorities upon their request.

The transfer pricing documentation should include the following information:

  • Summary of activities and functions of the taxpayer;
  • Risks assumed and assets used by the taxpayer in carrying out these activities and functions;
  • Description/details, quantification of transactions entered into;
  • Identification of related parties with whom the declared intercompany transactions were performed;
  • Explanation on the selection of the most appropriate TP method and the financial indicators;
  • Comparability analysis;
  • Explanation of any economic analysis and support project;
  • Conclusion on the compliance of controlled transactions terms within arm’s length principle; and
  • Any other relevant information which can have a material impact on the taxpayer’s compliance with the arm’s length principle.

Country-by-Country (CbC) Reporting

Honduras to date has not implemented a Country-by-Country reporting requirement under domestic law. However, Honduras has recently joined the OECD’s Inclusive Framework, membership of which presupposes a commitment to implement the BEPS minimum standards, including CbC reporting.

Language of Documentation

The documentation is required to be prepared in Spanish.


Failure to provide false or grossly incomplete or inaccurate information or documentation to the tax authority attracts a fine of USD 10,000.

Declaring inaccurate or lower tax than the tax which would have been under arm’s length principle attracts a fine of 15% of tax adjustment made by the tax authorities.

Failure to provide the correct information or declare the correct taxable income attracts a penalty of 30% or USD 20,000, whichever is greater.

Failure to comply with any other transfer pricing laws attracts a penalty of USD 5,000.