Principal forms of tax
l. Corporate Income Tax Rates:
2. Payroll Taxes:
Pay As You Earn (PAYE) System
3. Personal Income Tax Rates:
Ranges from 15% - 45%
(Resident Individuals earning less than $10,400.00
per annum are fully exempted)
Value Added Tax is 15% effective from April 1, 1996.
5. Exemption from Taxes:
Exemption granted for Import duties and Income
Taxes for approved enterprises.
6. Double Taxation Treaties:
With United Kingdom, Sweden, Denmark and the
countries of the Caribbean Community (CARICOM).
7. Withholding Tax:
25% Tax is applied to non-resident Corporation and
Individuals on any sum paid in respect of management
fees, rental of plant and machinery, mortgage
and debenture interest, and Insurance Premiums.
The principal taxes in Belize are:
There is no tax on capital gains.
- Import duties
- Income tax
- Revenue replacement duty
- Stamp duties
- Excise on spirits, beer and cigarettes
- Export duties
- Land tax
The Income Tax System
Residents of Belize (individuals and companies) are liable to tax on their
worldwide income with the exception that individuals resident in Belize but
domiciled elsewhere are not liable to tax in Belize on income earned outside
of Belize unless that income is remitted to Belize.
Non-residents are liable to Belize tax only on income derived from Belize.
The Income Tax Department publishes a schedule of allowable wear and tear
(depreciation) allowances on industrial buildings and plant and machinery.
Where book depreciation differs from these allowable rates an adjustment
must be made in the computation of taxable income to substitute the
permitted allowances for the book figures.
Determination of taxable income
In ascertaining the chargeable (i.e. taxable) income of an individual or a
company there may be deducted all bona fide expenses wholly and exclusively
incurred in the production of the income, including:
a) interest on money borrowed
c) repair of premises, plant and machinery
d) bad debts
Losses cannot be carried back but they can be carried forward and applied
against future profits. This includes losses sustained during a tax
concession-period. Losses may not, however, be carried forward if control of
the company changes and the company ceases to carry on the business in which
the loss was sustained.
Allowances for wear and tear
The law permits claims for allowance for wear and tear on:
a) Industrial buildings
b) Plant and machinery (Including furniture and fixtures, and boats and
PROVIDED the assets are used for purposes of trade, business, a profession or
vocation during the year.
No allowance for wear and tear may be claimed on the following; but the net cost
for replacement of any of these items may be claimed as an expense in the Year of
- Irrigation flumes
- Loose tools
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