Honduras is the second largest country in Central America and over 80 % is mountainous. Tegucigalpa, located in the south-central highland region, is the capital and chief commercial centre. Although Honduras is one of the poorer nations in the Western Hemisphere and remains dependent on international economic assistance, the most part of the population is literate. However, the rate on unemployment remains very high.
The economy has continued to grow slowly and over the last few years the economic growth has achieved one of the highest rates in Latin America. Rich in forest resources and deposits of gold, silver, and copper mining is hampered by inadequate road and rail systems. The country remains underdeveloped as a result of difficult terrain and limited infrastructure budget. The consumer-oriented industry focuses around food, clothing, textile, and wood products, exists chiefly in San Pedro Sula and is small. Transport equipment, machinery, chemicals, and fuels industries are growing in importance.
To encourage investment, foreign residents living on their foreign incomes, are not subject to income taxes on that foreign income. Only the income earned in Honduras is taxed..
Contracting in Latin America is not a simple task and has many on-costs for employers. Most in country tax laws do not recognise contractors per se, hence contract workers may need to be remunerated as employees, taxes withheld and paid to various city, state and federal governments, and reserve funds held for other entitlements until end of contract. Please contact CXC Global for professional advice on the specific legislation applying in the country in order to facilitate contractors and foreign nationals working in Honduras. Forward planning is of the essence to optimize costs. Honduras has entered into Double Taxation Treaties with other countries.
For foreign national contract workers, contracting in Honduras, it would be wise to consult with CXC Global on the best way to structure, and how best to balance your taxation.
With our extensive experience and expertise in contractor management, and assisting organisations with their contingent workforce, CXC Global has the resources and solutions to manage the administration process associated with contracting in Honduras, facilitating accounting services and administration, local tax calculations, social security registration, tax balancing and preparation of personal income tax return at the end of the tax year.