Corporate Tax 2010 - BMR Advisors

Arias & Muñoz
Honduras
corporation in Honduras are imposed upon the formation of a
subsidiary (i.e. registration taxes and Bar Association taxes).
Capital duties have been repealed since the year 2002.
6.5 Would a branch benefit from tax treaty provisions, or some
of them
No, they would not.
Honduras
6.2 Are there any other significant taxes or fees that would be
incurred by a locally formed subsidiary but not by a
branch of a non-resident company
None; even though the process of incorporation of both types of
companies differ somewhat, the expenses incurred due to taxes or
fees are similar.
6.3 How would the taxable profits of a local branch be
determined
In the same manner as a local corporation; the operations of a
branch in Honduras are deemed independent from headquarter
operations and the profits are regulated exactly as a local
corporation. Gross profits minus reasonable expenses equal net
profits which are taxed at the corporate rate applicable.
6.4 Would such a branch be subject to a branch profits tax (or
other tax limited to branches of non-resident companies)
6.6 Would any withholding tax or other tax be imposed as the
result of a remittance of profits by the branch
The remittance of profits by the branch of a non-resident company
is not subject to any withholding tax.
7 Anti-avoidance
7.1 How does Honduras he issue of preventing tax avoidance
For example, is there a general anti-avoidance rule or a
disclosure rule imposing a requirement to disclose
avoidance schemes in advance of the company’s tax
return being submitted
Under Honduran Law tax evasion is considered as a crime. An
Anti-tax avoidance law is under the National Congress’s
consideration which will empower our tax authority with more
faculties to investigate and fight tax evasion.
Branch profits are treated in the same manner as corporate taxes of
local companies. For fiscal purposes branches are considered local
companies and their profits are regulated and taxed in identical
manner. Honduras has no special taxes for authorised branches of
non-resident companies.
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