This article provides a detailed overview of the corporate tax regime in Honduras as of 2025. It covers the flat corporate tax rate, key surtaxes, and other specific taxation rules relevant for businesses operating or considering investment in the country.
Corporate Tax Structure in Honduras (2025)
Honduras levies a flat corporate income tax rate on resident companies. The regime applies broadly to all entities subject to corporate tax in the country, with certain additional surtaxes and conditions for specific income levels or sectors.
| Tax Type | Rate (%) | Threshold / Condition | Currency (HNL) |
|---|---|---|---|
| Standard Corporate Tax | 25% | – | — |
| Solidarity Contribution | 5% | Taxable income over L 1,000,000 | L 1,000,000 |
| Minimum Tax (General) | 1% | Gross income > L 1,000,000,000 and if calculated CIT < 1% of gross income | L 1,000,000,000 |
| Minimum Tax (Specific Sectors) | 0.5% | Gross income > L 1,000,000,000 in cement, steel, public services, pharmaceuticals, coffee & if calculated CIT < 0.5% of gross income | L 1,000,000,000 |
| Anti-Evasion Surtax | 1% | Gross income ≥ L 100,000,000 for taxpayers reporting losses for 2 consecutive years (or 2 of 5 years) | L 100,000,000 |
Notes: L = Honduran Lempira (HNL); 1 USD = approx. 25 HNL as of 2025, so L 1,000,000 ≈ $40,000 USD
Standard Corporate Tax Rate
Honduran resident companies are taxed at a flat rate of 25% on their taxable income. There is no progressive rate structure, which provides greater predictability for tax planning purposes.
Solidarity Contribution
If a company’s taxable income exceeds L 1,000,000 (about $40,000 USD), an additional solidarity contribution of 5% applies to the amount exceeding this threshold in addition to the standard 25% rate.
Minimum Tax Provisions
Honduras enforces certain minimum tax (impuesto mínimo) rules for high-grossing companies. When gross income exceeds L 1,000,000,000 (approximately $40 million USD):
- A minimum tax of 1% on gross income applies if the regular corporate tax calculated is less than 1% of that gross income.
- In key sectors—cement, steel, public services, pharmaceuticals, and coffee—a lower minimum of 0.5% applies if the standard corporate tax is less than 0.5% of their gross income.
These minimum tax rules are designed to ensure that large corporates contribute a baseline amount, regardless of deductions or reported profits.
Anti-Evasion Surtax
There is an additional 1% surtax on gross income for companies with gross income equal to or exceeding L 100,000,000 (roughly $4 million USD) that report net losses in two consecutive years or in two out of five years. This anti-evasion measure is intended to prevent the prolonged reporting of losses among high-volume taxpayers. The amount paid under this rule is creditable against income tax due.
Corporate Tax Assessment Basis
The assessment basis for corporate tax in Honduras is the entity’s taxable income, meaning profits after allowable deductions. These figures must be reported in local currency (HNL).
Comparison: Corporate Tax Rates and Surtaxes (2025)
| Type | Base / Threshold | Rate (%) | Summary |
|---|---|---|---|
| Regular CIT | All taxable income | 25% | Flat rate for resident companies |
| Solidarity Contribution | > L 1,000,000 taxable income | 5% | Supplementary tax for higher earners |
| Minimum Tax – General | > L 1,000,000,000 gross income | 1% | If calculated CIT < 1% of gross income |
| Minimum Tax – Selected Sectors | > L 1,000,000,000 gross income (cement, etc.) | 0.5% | If calculated CIT < 0.5% of gross income |
| Anti-Evasion | L 100,000,000 gross income and loss pattern | 1% | For persistent loss reporters, creditable |
Pro Tips: Managing Corporate Tax in Honduras
- Monitor income thresholds closely—crossing L 1,000,000 or L 1,000,000,000 triggers additional taxes.
- Maintain detailed annual records, especially if your business operates in key sectors exposed to lower minimum tax rates.
- For companies with volatile profits, beware the anti-evasion surtax; consistent loss reporting can drive up taxes unexpectedly.
- Always reconcile gross income and taxable income when planning for potential minimum taxes, particularly for large enterprises.
- Consult the Servicio de Administración de Rentas (SAR) official website for updates and clarifications on tax laws.
Key Takeaways for 2025
Honduras applies a straightforward flat corporate tax rate of 25%, but significant surtaxes and minimum taxes apply for businesses with higher gross or taxable income. Special measures focus on high-income corporate taxpayers and those operating in sensitive sectors. As the regime uses both profit and gross income bases, businesses should structure operations thoughtfully to ensure compliance and optimize their effective tax rate.
Staying abreast of these rules and maintaining careful documentation are essential practical steps for any company working within the Honduran corporate tax system in 2025.