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Belize: Domestic Corporate Taxation

Scope of Business Tax

The Business Tax, which is in fact a turnover tax, is payable on a company's receipts, defined as: "all revenues, whether in cash or in kind, or whether received or accrued, of a person or entity carrying on a trade or business or practising his or its profession or vocation in Belize without any deduction whatsoever".

There are some exclusions, mostly of taxes payable to the Government, to avoid double taxation (see below).

The local subsidiaries of foreign companies do pay the Business Tax, but they are also assessed to Corporate Income Tax at 25% on their profits (as was the case before, although at 35%) and the Business Tax is treated as an advance against Corporate Tax (this is to preserve tax credits in their home countries).

Local companies are charged Corporate Income Tax at 25% on their chargeable income, and if the corporate income tax payable is less than the business tax paid for the year, the business tax paid will be treated as a final income tax. The excess of any business tax paid can be carried forward as an expense to the next basis year.

 

 

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