The approval of Legislative Decree 48-2022 Law for the Economic Recovery and Reactivation of Micro and Small Businesses and Agreement 362-2022 Regulations for the Economic Recovery and Reactivation of Micro and Small Businesses applies to all Micro and Small Enterprises (MSMEs) that have been:
- Incorporated in Honduras.
- Operating informally within five (5) years before the law entered into force; and
- Seek to formalize their operations under the new law.
The new regulations provide that such as MSME is:
- Partially exempt from Income Tax for five years.
- Exempt from the Tax on Net Assets and Temporary Solidarity Contribution.
- Subject to advance payments of one percent (1%).
- Able to account for depreciation and amortization from the fourth year.
- Exempt from the Tax on Industry, Commerce, and Services of any Municipality, for the first three (3) fiscal periods from the MSME’s constitution and registration.
Legally constituted beneficiaries must not invoice more than twelve million lempiras a year to enjoy benefits and must prove an increase of twenty percent (20%) in the subsequent generation of paid jobs. Such beneficiaries must register with the IHSS.