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This section contains Belize Tax Information .
 

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TAX POLICY
l. Corporate Income Tax Rates:          35%
2. Payroll Taxes: Pay As You Earn (PAYE) System
3. Personal Income Tax Rates: Ranges from 15% - 45%
(Resident Individuals earning less than $10,400.00
per annum are fully exempted)
4. VAT Value Added Tax is 15% effective from April 1, 1996.
5. Exemption from Taxes: Exemption granted for Import duties and Income
Taxes for approved enterprises.
6. Double Taxation Treaties: With United Kingdom, Sweden, Denmark and the
countries of the Caribbean Community (CARICOM).
7. Withholding Tax: 25% Tax is applied to non-resident Corporation and
Individuals on any sum paid in respect of management
fees, rental of plant and machinery, mortgage
and debenture interest, and Insurance Premiums.
Principal forms of tax
The principal taxes in Belize are:
  • Import duties
  • Income tax
  • Revenue replacement duty
  • Stamp duties
  • Excise on spirits, beer and cigarettes
  • Export duties
  • Land tax

There is no tax on capital gains.

The Income Tax System Residents of Belize (individuals and companies) are liable to tax on their worldwide income with the exception that individuals resident in Belize but domiciled elsewhere are not liable to tax in Belize on income earned outside of Belize unless that income is remitted to Belize.

Non-residents are liable to Belize tax only on income derived from Belize.

The Income Tax Department publishes a schedule of allowable wear and tear (depreciation) allowances on industrial buildings and plant and machinery. Where book depreciation differs from these allowable rates an adjustment must be made in the computation of taxable income to substitute the permitted allowances for the book figures.

Determination of taxable income
In ascertaining the chargeable (i.e. taxable) income of an individual or a company there may be deducted all bona fide expenses wholly and exclusively incurred in the production of the income, including:

a) interest on money borrowed
b) rent
c) repair of premises, plant and machinery
d) bad debts

Losses
Losses cannot be carried back but they can be carried forward and applied against future profits. This includes losses sustained during a tax concession-period. Losses may not, however, be carried forward if control of the company changes and the company ceases to carry on the business in which the loss was sustained.

Allowances for wear and tear
The law permits claims for allowance for wear and tear on:
a) Industrial buildings
b) Plant and machinery (Including furniture and fixtures, and boats and launches

PROVIDED the assets are used for purposes of trade, business, a profession or vocation during the year.

No allowance for wear and tear may be claimed on the following; but the net cost for replacement of any of these items may be claimed as an expense in the Year of replacement.

  • Irrigation flumes
  • Loose tools

Facts on Company's Income Tax Policy

If a Company does not operate under a Fiscal Incentives (Approved Enterprise Order) the total tax payable is 35% of the chargeable income.

All companies should file a Company's Income Tax Return, together with their financial statements within three (3) months of the end of the financial period, to the nearest Income Tax Department. If more time is required a request in writing should be directed to the Commissioner of Income Tax BEFORE the due date. Otherwise a penalty for late filing may be levied. This penalty for late filing is a levy of 3% of the tax for the financial period, for each month or part of the month in which the return is late to a total of twenty (20) months.

The penalty for late payment of income tax is 1.5% per month on the unpaid amount from the due date to the date of payment. This applies to any deficiencies in installment as well as to any other amount. In the case of installments this charge is based on the tax calculated on the chargeable income for the previous financial period or the actual income tax for the financial period for which this return is filed, which ever is less. This charge also applies to any amount unpaid after the date for final payment.

A company should pay its income tax by quarterly installments. Installments are due no later than the last day of the 3rd, 6th, 9th, and 12th month of the company's financial period.

If a company wishes to employ foreign consultancy, technicians etc. who are not normally resident in Belize, their names should be registered at the Income Tax Department and the company should deduct 25% of total income paid to this non-resident

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