Browse Honduras Daily Stories

Dante Mossi, former president of the Central American Bank for Economic Integration, criticized a proposed reform excluding bonuses from income-tax calculations, warning it could enable employers to reclassify wages as tax-free bonuses and erode government revenue.

Former Central American Bank president Dante Mossi cautioned that a proposed reform to exclude bonuses from income tax (ISR) calculations would create tax-evasion opportunities and reduce government revenue, reversing two decades of IMF-backed reforms.

Congress is considering a reform to exclude performance bonuses, gratuities, and overtime pay from income-tax calculations, a move an economist says would reward worker effort but warns could enable tax evasion without proper state oversight.