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Belize: Domestic Corporate Taxation

Calculation of Taxable Base

The legislation defines "receipts" as being: "all revenues, whether in cash or in kind, or whether received or accrued, of a person or entity carrying the trade or business or practising his or its profession or vocation in Belize without any deduction whatsoever."

The following forms of revenues are not classified as "receipts":

  • Revenue Replacement Duty on fuel;
  • Supply sales by a designated bulk fuel importer to another bulk fuel supplier;
  • Excise duty;
  • Accommodation tax payable under the Hotels and Tourist Accommodation Act;
  • Value added tax payable to Government;
  • Funds received as an agent;
  • Any payment by a Public Investment Company (PIC) of a dividend or other distribution, interest or principal on any indebtedness to the PIC or to another PIC Group Company;
  • Receipts from trade, business, profession or vocation of less than USD37,500 per annum;
  • Rental receipts of less than USD400 per month where rents form the only source of livelihood of an individual, or where receipts from rents and any other source do not in the aggregate exceed USD400 per month;
  • Winnings from Boledo and Jackpot Lottery of no more than USD750;
  • Any from slot machines and table games where the winnings is less than USD500;
  • Interest from any debentures, treasury bills, treasury notes or bonds issued by or under the authority of the Government of Belize;
  • Receipts of any local authority, statutory board, corporation, friendly society, credit union or ecclesiastical, charitable or educational institution of public character in so far as such receipts are not derived from a trade or business carried on by any of these entities;
  • Interest on savings paid to individuals (but not to companies or other entities) by financial institutions in Belize (including credit unions, provident funds and similar institutions) subject to the condition that full disclosure of such interest is made to the Commissioner;
  • Receipts of Belize Electric Company Limited and its successors and permitted assigns as provided in the Mollejon Hydro-electric Project (Exemptions from Taxes and Duties Act, 1994);
  • Absolute and immediate gifts amounting in the aggregate to USD250 or more, taking effect in Belize, for sports, ecclesiastical, charitable, educational or cultural purposes or for the improvement of amenities in towns or villages, up to a maximum of USD15,000 per annum, provided that the Commissioner is satisfied that the gifts were actually made;
  • Receipts of an Export Processing Zone Business in accordance with Section 12 of the Export Processing Zone Act;
  • In addition, the Minister, on the recommendation of the Revenue Advisory Board and by Order published in the Gazette, may exempt a newly-established business or industry from the payment of Business Tax during the first two years of its operation, if in his opinion it is necessary to alleviate hardship or financial difficulty, and a maximum period of five years for citrus or other long term crops where the date of production is longer than two years from the start of operation.
Interest paid on loans to non-residents is exempt from tax if:
  • the loan is to a development industry or projects specified by the Minister by notice published in the Gazette; and
  • the Minister is satisfied with the ratio of paid up share capital to loan capital in such industries or projects; and
  • tax is not chargeable on such interest payments in the country of residence of the person to whom such interest is paid, (but the Minister may waive this requirement if he is satisfied that the loan capital could not be reasonably procured in Belize).

Additionally, the Minister, on the recommendation of the Revenue Advisory Board and by Order published in the Gazette, may exempt a newly-established business or industry from the payment of Business Tax during the first two years of its operation, if in his opinion it is necessary to alleviate hardship or financial difficulty, and a maximum period of five years for citrus or other long term crops where the date of production is longer than two years from the start of operation.

NB: This brief summary of some of the more important aspects of Belizean tax law is given for general information only; it should not be relied upon in actual situations, for which professional tax advice is necessary.

 

 

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