Belize: Domestic Corporate Taxation
Scope of Business Tax
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 taxes payable to the Government, to avoid double taxation (see below).
The local subsidiaries of foreign companies do pay business tax, though they are also assessed to pay corporate income tax at 25% on their profits. Business tax is treated as an advance against corporation tax (this is to preserve tax credits in their home countries).
Local companies are charged corporate income tax at 25% on their chargeable income. 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. Any excess business tax paid can be carried forward as an expense to the next basis year.