Belize legal and accounting and tax considerations in 2023

Since 2003, Healy Consultants Group assists our Clients with timely compliance of their annual legal, accounting and tax obligations in Belize.

• Corporate Income Tax

  A resident Belize business with annual income exceeding BZ$75,000 (US$37,500) must pay corporate income tax. The rate depends on business activity:

  Business Activity	Rate
  Trade or business	1.75%
  Licensed financial services	3.0% & 6.0%
  Commissions and royalties	5.0% & 15.0%
  Rental income	3.0%
  Radio, on-air TV, and newspaper	0.75%
  Domestic aviation	1.75%
  Licensed insurance	1.75%
  Telecommunications	19.0%
  Fuel/lubricants	0.75%
  Casino and gaming	8.0%
  Real estate	15.0%
  Tour operators & travel agents	6.0%

• Withholding taxes/capital gains tax

  • Withholding taxes are applicable to any payments to non-residents by Belize companies. Rates vary depending on payment. The following rates apply:
    

    Payment	Rate
    Dividends	15%
    Insurance premiums	25%
    Loan interest	15%
    Management fees	25%
    Plant and equipment rent	25%
    Technical services	25%

  • The withheld tax must be immediately paid to the Belize Income Tax Department.
  • This is a final tax on this type of receipt and should not be combined with other receipts being reported for business tax purposes in a monthly return.

• Goods and Services Tax (GST)

  • Belize imposes a standard 12.5% Goods and Services Tax (GST). However, most goods and services provided to a non-resident, or which are exported, are zero-rated for GST purposes. GST is imposed on the mark-up value of goods and services, and is payable monthly to the Department of GST at the Ministry of Finance.
  • Clients in Belize must register for GST (Tax identification Number) if:
    • The value of taxable supplies of goods and services exceeds US$75,000;
    • Average monthly value of taxable supplies exceeds US$6,250 is the company has been in business for less than a year.
  • Basic items related to agriculture, public transport, medicine and medical supplies and education are GST Exempt.
  • A GST-registered company in Belize must meet certain obligations, including displaying the Certificate of Registration in a prominent place at each location where business is conducted

• Social Security & Payroll tax

  • Every Belize company must make Social Security contributions for employees between 14 to 65 years of age.
  • Each employer must ensure that employees hold a valid social security card prior to hiring.
  • Social security contributions by employer and employee must amount to a collective 9%, the split being contingent on the employee’s income.
  • Social security contributions are payable to the Belize Social Security Board by the 14^th day of each month.

• Filing due dates

  • The business tax return, along with tax due, must be filed by the 15^th day of the following month, covering all receipts for the previous month.
  • A Goods and Services Tax (GST) return and payment is due within 15 days of the end of each month.
  • The amounts declared in the GST return and the payment must be made in Belize currency. Payments in other currencies are not accepted.

• Consequences of late / non-filing of tax returns

  • Late tax return filling incurs a 10% penalty of the tax due for every month or part of the outstanding month, for a maximum of 24 months.
  • Late payment of tax due incurs a penalty of 1.5% interest per month on the unpaid balance from the time it was due, until payment date.
  • Failure to file a return for more than 24 months may result in a fine of up to $10,000 and up to two years’ imprisonment.

• Tax reporting, accounting and auditing considerations

  • Companies in Belize can choose to prepare their financial statements according to International Financial Reporting Standards (IFRS) or US Generally Accepted Accounting Principles (GAAP).
  • Accounting records must be kept for at least five years from the transaction date, closure of an account or termination of a business collaboration.

• Healy Consultants Group fees for accounting and tax support

  Belize accounting & tax task	US$
  Tax Identification Number registration	950
  Annual tax and accounting fees (active trading company)	2,300
  Annual tax and accounting fees (dormant company)	950

  These accounting and tax fees are an estimate of Healy Consultants Group fees to efficiently discharge your annual company accounting and tax obligations. Following receipt of a set of draft accounting numbers from your company, Healy Consultants Group will more accurately advise accounting and tax fees.

• Monthly bookkeeping service

  Healy Consultants Group will be happy to provide a monthly book-keeping service for your Belize company. Typically, our Accounting & Tax Department (ATD) team will receive a Dropbox of data from our Client and will immediately thereafter timely supply our Client with i) a general ledger ii) trial balance iii) monthly and quarterly management accounts and iv) monthly and quarterly government reporting, including sales tax and payroll.

  For further details of our book-keeping service and our fees, visit this page.

Conclusion

Clients should be aware of their personal and corporate tax obligations in their country of residence and domicile. They must fulfil these obligations annually. Let us know if you need Healy Consultants Group’s help to clarify your annual reporting obligations.