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.
- 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%.
Other tax considerations for Belize company formation
- 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;
- For employees over 14 years old and under 65 years old, it is mandatory for a Belizean company to make Social Security contribution for the employees. 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.