Accounting and tax
Corporate tax summary for Belize company formation
GST and commercial taxes for Belize company formation
- The standard Goods and Services Tax (GST) rate in Belize on imports and transactions of goods and services rendered is 12.5%. GST returns must be filed at the end of every month;
- Companies in Belize must register for GST under the following circumstances:
- Value of taxable supplies of goods and services is US$75,000 or more;
- Average monthly value of taxable supplies is US$6,250 or more, for companies that have been in business for a year or less.
- After the application for GST registration is approved, the Belize Department of GST will issue a Certificate of Registration bearing the Tax Identification Number (TIN). Our Client must display this certificate in a prominent spot at the place of business;
- The typical tax invoice for a Belize company follows the standard Tax Invoice format when issuing invoices to customers:
- The title ‘Tax Invoice’;
- Serial number and date of issue;
- Name, address and TIN of the business and customer;
- Description of goods and services supplied;
- Price of the goods and services before tax;
- Rate of GST charged.
Other tax considerations for Belize company formation
- Belize resident companies are subject to income tax generally at a rate of 25%, only on income sourced within Belize;
- Withholding tax for Belize companies is applicable to:
- Dividends paid to non-residents at 15%;
- Management fees, rental of plant and equipment, and technical services fees paid to non-residents at 25%.
- Property and land are subject to tax in Belize between 1 to 12% of the land’s value. The tax rate depends on i) if the property is developed; ii) if the property is used to collect rent and iii) the location of the property;
- With the aim of steering away from its reputation of a tax haven, Belize has signed the Tax Information Exchange Agreement (TIEA) with 13 nations to promote international co-operation in tax transparency and exchange of information – to maintain;
- It is mandatory for a Belizean company to make Social Security contributions for employees between 14 to 65 years of age. Social Security contributions are payable by the employer by the 14th day of each month;
- Resident employees who earn more than BZ$26,000 (approximately US$13,000) are subject to a flat personal income tax rate of 25%. Resident employees who earn less than BZ$26,000 per annum are exempt from personal income tax;
- Belize has double taxation agreements with the United Kingdom, Austria, and countries from the Caribbean Community (CARICOM), making it more attractive for company formation purposes;
- Companies in Belize can choose to prepare their financial statements according to the International Financial Reporting Standards (IFRS) or the U.S. Generally Accepted Accounting Principles (GAAP);
- The Belize IBC is exempted from all taxes and all tax reporting obligations imposed on the other types of entities.