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8.1.2. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital Duty NIL There is no capital duty in Honduras.
Payroll Tax NIL There is no payroll tax separately due by companies on their total payroll expenditure. Employers are required to withhold income tax and social security premiums on behalf of their employees under the PAYE system.
Social Security Employer Contribution 8.70% Employers are required to contribute the following on the basis of the employee’s salary: Social security tax: • Sickness and maternity – 5% up to a maximum of HNL 9,849.70monthly • Invalidity, old age, and death – 3.5% up to a maximum of HNL 10,282.37monthly • Professional risk – 0.2% up to a maximum of HNL 9,849.70monthly Pension fund – 1.5% on the excess of employee’s salary of HNL 10,282.37• Professional training tax to INFOP – 1% of company’s total payroll • Housing fund (RAP), if a company has more than 10 employees – 1.5%.
Social Security Employee Contribution 5.00% Employees are required to contribute 5% of their gross salaries towards: • Sickness and maternity - 2.5% for employees on income up to a maximum of HNL 9,849.70 • Invalidity, old age, and death- 2.5% from employees on income up to a maximum of HNL 10,282.37.
Stamp Duty NIL There is no stamp duty levy in Honduras
Transfer Tax 1.50% It is levied on the transfer of immovable property at the rate of 1.5% of the transfer value of the property.
Property Tax (Real property) Varies depending on the location of the property It is levied on the property owned by companies on an annual basis by the government depending on the location of the property.
Customs Duty 0% - 15% Customs duty is levied by the government at the time of customs clearance of goods at tariffs ranging from 0% to 15% depending on the type of the product. Imports from certain countries covered under the trade agreements are duty-free. An ad-valorem import tax is also levied at the rate of 20% on the import of specified products. Imports are also subject to sales tax at the rate of 15% or 18% on the sum of the cost, insurance, and freight (CIF) value and all other duties/ taxes.
Excise duty Varies depending on the type of product Excise tax is levied on the production and importation of goods such as cigarettes, sodas, beer, and alcoholic beverages.
Municipal Income Tax Varies depending on the annual gross income It is levied on the companies doing business in Honduras based on the annual gross income.