Belize tax system - taxation of Belizean companies and individuals: VAT, income tax and capital gains. Tax treaties of Belize.
Basic taxes (briefly)
|Corporate tax (in detail)||Income tax is paid only in the oil sector. Other companies pay business tax, calculated as a percentage of revenue.|
|Capital gains tax. Details||There is no capital gains tax in Belize.|
|VAT. Details||GST is similar to VAT. The tax rate is 12.5%.|
|Other taxes||Social contributions, Property taxes|
International tax agreement
|Antigua and Barbuda, Austria, Barbados, Dominica, Grenada, Guyana, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Switzerland, Trinidad and Tobago, United Arab Emirates, United Kingdom|
|Australia, Belgium, France, Netherlands, United Kingdom, Finland, Sweden, Denmark, Norway, Iceland, Ireland, Greenland, Faroe Island, Portugal|
Personal income tax
The income tax is charged at a flat rate of 25%.
There are non-taxable thresholds of income, revised from time to time.
There is no separate tax on capital gains.
Corporate income tax
Until recently, Belize has had a preferential tax regime for international business companies. Then the country transitioned to a territorial tax regime, which was also changed.
In 2020, corporate taxation has seen significant changes. Corporate income tax is only paid in the oil sector. Other companies pay business tax calculated as a percentage of revenue. In some cases, when the business tax is higher than the corporate income tax calculated at the rate of 25%, or the company has losses, some additional deductions can be used. The rate of such “turnover” business tax varies depending on the type of income (from 0.75% to 19%). Overseas passive income (dividends, interest, royalties and net capital gains) is taxed at the rate of 5%; foreign tax credit of these payments is available.
Companies can be exempted from business tax on passive income if they can prove that they are tax residents of another country (which is not on the EU blacklist) and do not have a permanent establishment in Belize.
There are no CFC rules in place.
Withholding tax on dividends and interest is 15% and on some other payments (technical and management service fees, rental payments) is 25%.
General sales tax (GST)
GST is similar to VAT. The tax rate is 12.5%.
Social security contributions
The employer and the employee pay social security contributions on employment remuneration.
The general rate is 9%, of which 1.69% is payable by the employee and 7.31% by the employer.
With an increase in employment remuneration, the rate for an employee rises to 3.91%.
Sales of immovable property are subject to special taxes. Land taxes depend on a number of factors and range from 1% to 1.5%. Taxes on immovable property are paid as a percentage of its rental value / rental income.
There are other taxes and fees.
International tax treaties
Belize has 14 Double Tax Treaties (DTC), and 14 Tax Information Exchange Agreement (TIEA) with the following jurisdictions:
14 DTC: Antigua and Barbuda, Austria, Barbados, Dominica, Grenada, Guyana, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Switzerland, Trinidad and Tobago, United Arab Emirates, United Kingdom.
14 TIEAs: Australia, Belgium, France, Netherlands, United Kingdom, Finland, Sweden, Denmark, Norway, Iceland, Ireland, Greenland, Faroe Island, Portugal.
In addition, Belize has signed and ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The Multilateral Convention entered into force for Belize on August 1, 2022.
There are generally no restrictions on foreign exchange transactions. However, there are special rules for making foreign exchange transactions.
Taxes of Belize
|Min. rate for corporate tax|
|Capital gains tax||No|