The Free Trade Zones Law (ZOLI) and Tax Justice Project in Honduras

The establishment of free zones has brought benefits to the country regarding employment opportunities and the development of commercial and industrial activities.

We can understand the objective of the Free Zones Law with the aforementioned information. The Government of Honduras, through the Secretariat of Revenue Administration (SAR), and the Secretary of Economic Development, present the project for a reform tax law called the Tax Justice Law.

According to this bill, which has not yet reached the National Congress of Honduras, contemplates that ten out of the eighteen tax exemptions and exemption regimes that exist in the country would be eliminated

The analysis process with various sectors of Honduran society has been carried out to identify the possible impression that this draft Tax Justice Law may generate, analyzing the factors in which the corresponding rights must be ensured before tax and customs. Currently, some of the sectors have expressed themselves, such as private companies, where a debate has been generated between various actors on the possible consequences that may arise in terms of an impact on the country’s economy, particularly on groups living in vulnerable conditions. The private sector has also stated that there is no resistance to a review of the tax exemptions.

In this context, companies that operate under this benefit usually seek to start their operations in a country with exceptional labour and tax benefits which allow growth and expansion for their business, people and the State.
In conclusion, the Tax Justice Law project must be considered under the status of the Free Zones Law (ZOLI), to discern that in this project there are no non-compliance with the laws of Honduras.

The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, and does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking advice from professional advisers.

Sandra.izaguirre@ariaslaw.com

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