Honduras's headline corporate income tax (CIT) rate is 25 plus 5% surcharge over HNL 1 million.
The headline personal income tax (PIT) rate is 25.
The standard VAT/GST (or equivalent consumption tax) rate is 15 (sales tax). Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
An individual is tax resident in Honduras if present in the country for more than 90 days in a fiscal year, whether continuously or not. Corporate residence is not defined by a separate central-management-and-control test in the same way as many other jurisdictions; Honduran resident companies are simply taxed on a territorial basis by default. Honduras runs a territorial system: resident companies and resident individuals are taxed only on Honduras-source income, and non-resident companies are taxed only on Honduras-source income as well. Gains from the sale of shares in a foreign affiliate by a Honduran corporation are generally treated as foreign-source and fall outside the Honduran tax base, and foreign branches of Honduran corporations operating outside Honduras are not subject to Honduran tax on their foreign-source income.
Honduras has no CFC regime and has not enacted legislation to tax the undistributed income of foreign subsidiaries - confirmed independently by two sources. The territorial system removes the need for a CFC-type inclusion mechanism, since foreign-source income is outside the tax base regardless of who controls the foreign entity earning it. Honduras has no general anti-avoidance rule (GAAR). It does have transfer pricing rules, though narrower in scope than most jurisdictions' - they apply specifically to transactions between Honduran resident entities and entities operating under a special tax regime, with the tax administration able to separately evaluate economic substance in cross-border related-party transactions.
Honduras has no thin capitalization rules - confirmed via a Central America tax-system overview. Interest payments are deductible where connected to taxable Honduras-source income, regardless of the residence of the lender, subject to transfer pricing and withholding requirements, rather than being subject to a debt-to-equity ratio cap.
Honduras's territorial system means it has no domestic FBAR/Form 8938-equivalent requiring a Honduras resident to self-report foreign accounts, since foreign-source income and foreign-held assets are outside the Honduran tax base regardless of residency. Honduras does have a FATCA intergovernmental agreement with the United States (Honduran financial institutions report US-linked account data, which is exchanged with the IRS); its participation status in the OECD Common Reporting Standard automatic exchange network was not confirmed from a primary source this session. Separately and independently of Honduras law, US citizens and Green Card holders with Honduras accounts remain obligated to file FinCEN Form 114 (FBAR) once aggregate foreign accounts exceed USD 10,000, and potentially Form 8938, regardless of Honduras's own domestic requirements.
Honduras has not signed any comprehensive double tax treaties with any jurisdiction - there is no treaty definition of permanent establishment in Honduran practice because none currently exists. Honduras does maintain a Tax Information Exchange Agreement (TIEA) with the United States, and bilateral investment treaties or free trade agreements providing investor protection (international arbitration for expropriation/nationalization disputes, not double-tax relief) with Canada, the Dominican Republic, the Netherlands, Panama, Spain, Switzerland, the United Kingdom, and the United States.