Taxes In Belize

In any case, the tax paid at the entrance by the registered person is compensated with the tax received on departure, and only the difference is paid. But, when the cost of the departure tax exceeds the entry tax, the person may solicit the difference as a credit against future responsibilities.

There are exemptions on the tax, for example, in the case of financial services, some medicines, or certain products related to agricultural services. Also, there is a series of products which no tax rate such as rice, bread, eggs, sugar, fruits and fresh vegetables produced locally, etc.

Corporate Tax

The basic legislation applicable to corporate taxation is also established in the Income and Business Tax Act.

In addition to income tax, self-employed workers and companies must pay the Commercial Tax. Employees are exempt from paying it.

Companies must pay a tax on economic activities which is levied on all income above the following thresholds: US$37,500 for a company or commercial activity and US$10,000 for those who are self-employed.

The tax on economic activities depends on the type of company and ranges between 0.75% to 25% withheld from management rights and some other charges paid by nonresidents.

Companies can also file an income tax return, set at 25% of profits above BZ$20,000 (there is no threshold for nonresidents).

And, if the income tax is higher than the tax on economic activities, the excess income tax is exempted. In the event that the company has losses, these can be converted into a tax credit for the purpose of tax on economic activities and the losses can be carried over to a new account for five years (seven in the case of farmers).

The tax on companies involved in petroleum production has a tax rate of 40%, payable quarterly.