HONDURAS Trends and Developments Contributed by: Alberto Zúniga and Carlos Zúniga, Baker Tilly Honduras
necessary incentives for companies to remain com - petitive and maintain foreign and national investment. For companies operating under RIT or related export frameworks, this extension provides medium-term visibility within an evolving policy environment. In jurisdictions where regulatory shifts have occurred, tax consistency becomes a significant factor in invest - ment planning. Although tax incentives have remained necessary for Honduras’ economic framework, special enforcement legislative mechanisms like Agreement No 143-2025 provide a clear balance of tax freedom with oversight, formalising supervisory procedures over tax exonera - tions and reinforcing compliance requirements. While stronger controls may enhance fiscal discipline, stabil - ity requires that enforcement remains proportionate and predictable. The Próspera ZEDE arbitration (ICSID Case No ARB/23/2) underscores how modifications to special frameworks can carry international implications. The stability of incentive regimes depends not only on their statutory existence, but also on how consistently they are administered over time. Future direction Current measures suggest that Honduras is not pursuing immediate structural reform. Instead, the approach is to maintain the existing incentive archi - tecture while addressing administrative and fiscal adjustments within that system.
Honduras’ corporate tax policy is not being funda - mentally restructured. It is being managed within an established incentive-based framework following a period of heightened reform debate and dispute expo - sure. Extensions of key regimes, targeted fiscal relief measures and renewed engagement with international arbitration mechanisms indicate an effort to stabilise the current structure rather than replace it. Enhanced supervision of incentive beneficiaries reflects ongoing fiscal discipline within that model. Over time, consist - ent administrative behaviour will matter more than individual policies and law. In a period of institutional transition, Honduras remains active in offering sector-specific incentives across manufacturing, export industries, tourism, BPO services, mining, renewable energy and special economic zones. The existence of these regimes is not in question. The central issue is how consistently they are applied and how predictably they are admin - istered. In a legislative environment where reform volatility forms part of the institutional tradition, long-term con - fidence will depend less on new announcements and more on sustained administrative practice. Stability will ultimately be demonstrated through consistent enforcement, institutional continuity and transparent application of the existing policy framework.
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