Scot, ThiagoBachas, PierreCesteros, SantiagoFlores, TatianaOqueli, GabrielEspinal Hernandez, Edgardo EnriquePonce Nuñez, Wilman AlonsoCanales Licona, Sahira Rocio2025-03-122025-03-122025-03-12https://hdl.handle.net/10986/42937This note examines the effective income tax rates of top earners in Honduras, using a novel approach that links personal and corporate income tax data. This comprehensive income measure, achieved through collaboration with the Honduras Tax Authority (SAR), reveals a crucial link between the design of personal and corporate income taxes. The findings indicate that over 50% of total comprehensive income for the top 0.05% of earners comes from undistributed corporate profits, while distributed capital income accounts for less than 15%. The effective tax rate (ETR) for the top 0.01% of earners hovers around 25%, which is relatively flat compared to the significant drop observed in high-income countries. This is attributed to Honduras’s flat corporate income tax rate of 25% aligning with the highest marginal rate for personal income.en-USCC BY-NC 3.0 IGOECONOMIC GROWTHINCOME TAX RATESHONDURAS TAX AUTHORITY (SAR)DISTRIBUTED CAPITAL INCOMEEFFECTIVE TAX RATEWorking PaperWorld Bank10.1596/42937