- Updated
- May 2025
- Sections
- 15
- Questions
- 36
Key Facts
Core Framework
Decree No.232-2011, Transfer Pricing Regulation Law, Articles: 1 and 3 numeral 5. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 10 and 33. https://www.sar.gob.hn/download/acuerdo-027-2015/
Yes, the domestic framework references the arm's length principle.
Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 38.
As a technical reference for the provisions of this Regulations, the OECD TPG is followed, if they are consistent with the provisions of the Honduras legal framework.
Decree No.232-2011, Transfer Pricing Regulation Law, Article 7. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 17, 18, 19, 20, 21 and 38.
Chapter III of the TPG is largely followed as the OECD TPG are used as a technical reference.
Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 20.
When local information is not available, information from domestic and foreign companies from reliable public and private data sources may be used.
Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 20.
The framework does not permit the use of secret comparables.
Decree No.232-2011, Transfer Pricing Regulation Law, Article 9. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 25 and 26.
A price range, amount of transaction, or profit margins can be obtained when there are two or more comparable transactions and the determined price results in an approximation rather than an exact margin.
Documentation
Decree No.232-2011, Transfer Pricing Regulation Law, Article 17. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 29, 30, 31, 32 and 33. Decree No.170-2016, Tax Code, Article 113. Agreement No. SAR- 653-2023.
Taxpayers are required to submit a tax declaration and sufficient information/analysis (Transfer Pricing Study) to assess operations with related parties.
Decree No.232-2011, Transfer Pricing Regulation Law, Article 17. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 29, 30, 31, 32 and 33. Decree No.170-2016, Tax Code, Article 113. Agreement No. SAR- 653-2023.
Taxpayers are required to submit a tax declaration and sufficient information/analysis (Transfer Pricing Study) to assess operations with related parties.
Decree No.232-2011, Transfer Pricing Regulation Law, Article 17. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 29, 30, 31, 32 and 33. Decree No.170-2016, Tax Code, Article 113. Agreement No. SAR- 653-2023.
Taxpayers are required to submit a tax declaration and sufficient information/analysis (Transfer Pricing Study) to assess operations with related parties.
Decree No.232-2011, Transfer Pricing Regulation Law, Article 18 and 19. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 35 and 36.
Penalties include: USD 10,000 for failing to provide or providing false/incomplete data; 15% of the adjustment amount for declaring a lower taxable base (increasing to 30% or USD 20,000 in certain cases); and USD 5,000 for other breaches.
TP Methods
- CUP
- Resale Price
- Cost Plus
- TNMM
- Profit Split
- Other
Selection: Most appropriate method
Dispute Resolution
Decree No.232-2011, Transfer Pricing Regulation Law, Article 13 & 14. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 34.
APAs are allowed under domestic law, but the Tax Administration currently does not have an APA programme in place. MAPs are not referred to in the tax law.
Decree No.232-2011, Transfer Pricing Regulation Law, Article 13 & 14. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 34.
APAs are allowed under domestic law, but the Tax Administration currently does not have an APA programme in place. MAPs are not referred to in the tax law.
Simplifications
Decree No. 25 Income Tax Law, Article 25 & 5 subsection 7).
Honduras does not provide for safe harbours. However, certain rules exist regarding the recognition of dividends and interest on commercial operations with related parties.
Currently there are no measures in place regarding the simplified and streamlined approach for baseline marketing and distribution activities.
Special Topics
Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 28 and 38.
Domestic legislation refers to transactions of intangible assets and sets general rules about factors affecting comparability. It largely follows Chapter VI of the TPG.
The Tax Administration has not yet established specific measures regarding intangibles that are difficult to value.
Decree No.232-2011, Transfer Pricing Regulation Law, Article 12. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 27 and 38.
Intra-group services are referred to in a general manner within domestic legislation.
Decree No.232-2011, Transfer Pricing Regulation Law, Articles: 5, 6 and 11. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 15, 16 and 38.
There is no specific guidance on this matter within the transfer pricing framework.
Full OECD Questionnaire
Legal ReferenceDecree No.232-2011, Transfer Pricing Regulation Law, Articles: 1 and 3 numeral 5. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 10 and 33. https://www.sar.gob.hn/download/acuerdo-027-2015/
Yes, the domestic framework references the arm's length principle.
Legal ReferenceAgreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 38.
As a technical reference for the provisions of this Regulations, the OECD TPG is followed, if they are consistent with the provisions of the Honduras legal framework.
Legal ReferenceDecree No.232-2011, Transfer Pricing Regulation Law, Article 3 paragraph 3 and Article 4. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 11, 12 & 13.
Article 3 defines Related or Associated Parties as two or more natural or legal persons, domiciled or not, when one participates directly or indirectly in the management, control, or capital of another. Article 4 specifies that when participation is based on share capital or voting rights, it must be more than fifty percent (50%). The regulation includes further criteria such as decision units, permanent establishments abroad, exclusivity as an agent, and financial or economic dependence.
Legal ReferenceDecree No.232-2011, Transfer Pricing Regulation Law, Articles: 8 and 10. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 23.
Honduras allows the use of standard OECD methods and an additional method for export transactions of internationally traded goods. Taxpayers can use a different method if they can prove that none of the listed methods can be reasonably and reliably applied.
- CUP (provided)
- Resale Price (provided)
- Cost Plus (provided)
- TNMM (provided)
- Profit Split (provided)
- Other (provided)
Legal ReferenceDecree No.232-2011, Transfer Pricing Regulation Law, Article 8 & 9. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 24.
The taxpayer must apply the Best Method Principle, selecting the method that is most appropriate to the specific circumstances of the case, line of business, and structure of the entity.
- Hierarchy of methods (not selected)
- Most appropriate method (selected)
- Other (if so, please explain) (not selected)
Legal ReferenceDecree No.232-2011, Transfer Pricing Regulation Law, Article 10. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 23. Decree No.62-2019, Article 1.
For export operations of goods with a public price on transparent markets, the exporter may choose to apply the CUP method based on the quotation value at the date of the beginning of the shipment. This price may be adjusted according to proven incidence normally admitted by origin in Honduras.
Legal ReferenceDecree No.232-2011, Transfer Pricing Regulation Law, Article 7. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 17, 18, 19, 20, 21 and 38.
Chapter III of the TPG is largely followed as the OECD TPG are used as a technical reference.
Legal ReferenceAgreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 20.
When local information is not available, information from domestic and foreign companies from reliable public and private data sources may be used.
Legal ReferenceAgreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 20.
The framework does not permit the use of secret comparables.
Legal ReferenceDecree No.232-2011, Transfer Pricing Regulation Law, Article 9. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 25 and 26.
A price range, amount of transaction, or profit margins can be obtained when there are two or more comparable transactions and the determined price results in an approximation rather than an exact margin.
Legal ReferenceDecree No.232-2011, Transfer Pricing Regulation Law, Article 7. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 17.
Comparability adjustments are required when differences exist that affect the price or margin, and those differences can be reasonably adjusted or eliminated.
Legal ReferenceAgreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 28 and 38.
Domestic legislation refers to transactions of intangible assets and sets general rules about factors affecting comparability. It largely follows Chapter VI of the TPG.
Legal ReferenceAgreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 28.
The Tax Administration must determine procedures via general agreement, but this has not yet been carried out.
The Tax Administration has not yet established specific measures regarding intangibles that are difficult to value.
Legal ReferenceDecree No.232-2011, Transfer Pricing Regulation Law, Article 12. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 27 and 38.
Intra-group services are referred to in a general manner within domestic legislation.
The Tax Administration has not yet established any simplified approach for low value-adding intra-group services.
There is no specific guidance on this matter.
Legal ReferenceDecree No.232-2011, Transfer Pricing Regulation Law, Articles: 5, 6 and 11. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 15, 16 and 38.
There is no specific guidance on this matter within the transfer pricing framework.
Legal ReferenceDecree No. 25 Income Tax Law, Articles: 5 numeral 7) and last paragraph; 12 subsection e).
Article 5 of the Income Tax Law establishes that interest on commercial operations paid to related entities will be taxed as dividends. Article 12(e) establishes that interest on capital invested or loaned by owners or relatives is not deductible.
Legal ReferenceAgreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 27 subsection 4.
Honduras allows CCAs and follows Chapter VIII of the TPG. Regulation Article 27(4) establishes criteria for distributing remuneration for services provided to several related parties based on reasonable distribution criteria.
Legal ReferenceDecree No.232-2011, Transfer Pricing Regulation Law, Article 17. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Articles: 29, 30, 31, 32 and 33. Decree No.170-2016, Tax Code, Article 113. Agreement No. SAR- 653-2023.
Taxpayers are required to submit a tax declaration and sufficient information/analysis (Transfer Pricing Study) to assess operations with related parties.
- Master file consistent with Annex I to Chapter V of the TPG (selected)
- Local file consistent with Annex II to Chapter V of the TPG (selected)
- Country-by-country report consistent with Annex III to Chapter V of the TPG (selected)
- Specific transfer pricing returns (separate or annexed to the tax return) (selected)
- Other (specify) (selected)
Legal ReferenceAgreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 30, 31, and 32. Decree No.170-2016 - Tax Code. Article 113. Decree No.255-2002 Article 11. Agreement No. SAR- 653-2023.
The Annual Informative Affidavit on Transfer Prices must be submitted by April 30th (for calendar year taxpayers) or within three months of the fiscal period close. The Transfer Pricing Study must be submitted upon request. CbC reports must be submitted within 12 months of the last day of the reportable fiscal year. Documents in languages other than Spanish must be translated.
Legal ReferenceDecree No.232-2011, Transfer Pricing Regulation Law, Article 18 and 19. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 35 and 36.
Penalties include: USD 10,000 for failing to provide or providing false/incomplete data; 15% of the adjustment amount for declaring a lower taxable base (increasing to 30% or USD 20,000 in certain cases); and USD 5,000 for other breaches.
Legal ReferenceAgreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 30. Decree No.170-2016, Tax Code, Article 113. Agreement DEI-SG-004-2016.
Small taxpayers with accumulated operations less than USD 1,000,000 are not obligated to file the transfer pricing tax form. Taxpayers with only local related parties are generally exempt from the Transfer Pricing Study unless the related party is in a special regime with tax benefits.
Legal ReferenceDecree No.232-2011, Transfer Pricing Regulation Law, Article 13 & 14. Agreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 34.
APAs are allowed under domestic law, but the Tax Administration currently does not have an APA programme in place. MAPs are not referred to in the tax law.
- Rulings (not selected)
- Enhanced engagement or cooperative compliance programmes (not selected)
- Advance Pricing Agreements (APA) (not selected)
- International Compliance Assurance Programme (ICAP) (not selected)
- Mutual Agreement Procedures (not selected)
Currently there are no measures in place regarding the simplified and streamlined approach for baseline marketing and distribution activities.
N/A: Please refer to the response to question 34.
Legal ReferenceDecree No. 25 Income Tax Law, Article 25 & 5 subsection 7).
Honduras does not provide for safe harbours. However, certain rules exist regarding the recognition of dividends and interest on commercial operations with related parties.
Legal ReferenceAgreement No. 027-2015 - Regulation of the Transfer Pricing Regulation Law, Article 16, paragraph 2.
Taxpayers may rectify transactions if another State has made a primary adjustment, provided specific conditions are met: prior authorization from the Tax Administration, a valid tax treaty, the adjustment is paid and final, and it is certified by the other State.
Legal ReferenceManual of help of the Annual Informative Affidavit on Transfer Prices.
Self-adjustment of transfer prices is allowed at the end of the fiscal year and reported in the Annual Informative Tax Return.
Secondary adjustments do not exist in the domestic tax law.
The Tax Administration should determine procedures for PEs in accordance with the Tax Code and Income Tax Law, but this has not yet been established.
- Article 7 as it read before 2010. (not selected)
- Article 7 as it reads after 2010. (not selected)
- Other (please provide additional details) (selected)
Please refer to explanation in question 43.
Please refer to the explanation in question 43.
The Tax Administration is working on new regulations to the Transfer Pricing Law and other related topics.
Need Help with Honduras Transfer Pricing?
ArmsLength AI provides automated benchmarking studies that meet local documentation requirements.