The impact of the coronavirus (COVID-19) on the economy is unprecedented and is being felt around the world. The business world is deeply affected by this pandemic which, in addition to being a threat to public health, has negative economic and social effects that endanger any investment in the short, medium, and long term. The pandemic is severely affecting labor markets, economies, and businesses, including global supply chains, causing widespread disruption to trade.
In Honduras, it will be vital for the business community to continue making the effort to trust their investments in the country and in the progressive development of its economy. However, for this to be possible, it is necessary for the Honduran State, mainly through the Executive and Legislative branches, to generate regulations that constitute a genuine relief for the finances of private companies.
In this context, the Legislative Branch has approved certain bills sent by the Executive Branch to counteract the effects of COVID-19 on the national economy, such as Legislative Decrees 33-2020, 43-2020, 83-2020, 85-2020, among other regulations. Within these, certain measures have been authorized as short-term relief for the private sector. Below are some of them:
- A discount of up to 20% on the payment of real estate tax.
- Exemption from sales tax (ISV), customs duties, and other import taxes on the local purchase and import of supplies, medical equipment, as well as raw materials, machinery, supplies, equipment, spare parts, accessories, and packaging material necessary for the manufacturing of medical supplies, antiseptics, and disinfectants that serve to minimize the risk of COVID-19 infection.
- Suspension of contributions to the private contributions regime (RAP).
- Extension of deadlines for tax obligations, such as formal obligations regarding transfer prices, income tax (ISR), and sales tax (ISV) for companies without operations during the state of emergency.
- Modification of the calculation of advance payments for income tax (ISR).
- Solidarity contribution for employees subject to the suspension of employment contracts due to force majeure derived from the national health emergency.
- Implementation of the electronic signature.
- No requirement for a local operating permit for companies that are operating with home delivery or online sales and management of the national tax registry (RTN) via email.
- Allowing the use of expired fiscal documents for the entire 2020 fiscal period.
- Authorizing billing for companies with blocked national tax registry (RTN) processes.
At the moment, the business sector and the working class demand that the implementation of relief measures with a greater financial impact in the medium and long term is still pending. Without a doubt, the road ahead to recover the economy will be long and complicated, but we hope that governments understand the challenges posed by this health, economic, and social crisis, in order to create new solutions that allow for the development of private enterprise as the safety valve for this crisis.