How Belize Tax Helps You in Company Incorporation?

Guide on Belize Tax

Taxes play a very big role in the growth and development of a company.  Belize is a recognised tax haven and offers individuals and corporations a legal and transparent method of reducing tax liabilities. Having an understanding of the tax laws is important when opting for Belize offshore company formation.

In this write-up, we will discuss Belize taxation (for International Business Companies) and its functionalities.

A Glance at Belize Business Tax 

The following are the tax rates applicable to businesses in Belize.

  • Standard rate of Tax: 1.75% 
  • Professional services: 6%
  • Licensable financial services (for non-residents): 3%
  • Rent: 3%

Who is Required to Pay Belize Company Tax?

Taxation in Belize is applicable to companies that exceed the following revenue thresholds on an annual basis:

  • Trade & other income exceeded over $75,000
  • Professional services income exceeded $20,000
  • Retail receipts exceed over $9,600

Note: Tax payments can be made online via bank transfer and must be made before 7 PM. Any payment made after 7 PM will be considered for the next working day.

Belize Tax Exemption-All You Need to Know

Belize IBC is exempt from tax if you meet all these requirements.

  • To qualify for tax exemption, a Belize IBC cannot conduct any business activities inside the country and must earn all its income from abroad.
  • If the revenue or income is derived outside of Belize, they are exempt from Belize tax.
  • Obtaining a Tax Identification Number (TIN) provides credibility and legitimacy for Belize Business Company.

Obligations for Belize IBC

Apart from paying taxes, to operate under the Belize IBC tax framework, the companies need to adhere to the following:

  1. File Annual Tax Return

Belize IBCs are required to file their annual tax return with the Belize Tax Service Department.

  1. Submit the Respective Financial Statement

Belize IBCs must submit the financial statements at the time of filing annual tax returns.

  1. Obtain Tax Identification Number

Every IBC must have a TIN number so that the respective tax authority can monitor your IBC status. To obtain a tax identification number, you have to download the BTS150 Form.

What Would Happen if you Fail to Pay the Tax?

If you fail to file taxes, then you will be charged 1.5% per month on all unpaid balances for every month they remain outstanding. Also, taxpayers can face at least two years of imprisonment.

Belize offers a tax-friendly environment for International Business Companies (IBCs), but there are specific rules to follow. To ensure you maximise the benefits and stay compliant, it is recommended that you seek assistance from Business Setup Worldwide. BSW will assist you with all kinds of business queries and taxations in the respective jurisdiction.

FAQs

When do you have to file the tax return?

The tax return must be filed on or before 31st March each year.

Why opt for Belize offshore company formation?

While opting for Belize offshore company formation, the jurisdiction is exempt from all local taxes (if the company is not trading in Belize).

How to set up a company in Belize?

The following are steps to set up a company in Belize.

  • Choose an experienced business expert
  • Select a business structure
  • Finalise a company name
  • Submit the business documents
  • Wait for approval
  • Open an offshore bank account

How many days does it take to start a company in Belize?

Starting a company in Belize takes around 2-3 working days.

What are the documents required for Belize offshore company formation?

The following are the documents required for Belize offshore company formation:

  • Notarised passport copy

  • Notarised Utility Bill / Or Bank Statement / or Rental Agreement (issued within three months from today)

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