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Belize

International Business Company (Company limited by shares)

Belize is a Central American country known for its English-speaking ability, and robust offshore environment. 

In December 2018, the National Assembly of Belize passed the International Business Companies (Amendment) Act, 2018, the Income and Business Tax (Amendment) Act, 2018, and the Stamp Duties (Amendment) Act, 2018 to address the considered 'harmful tax regimes' identified by the FHTP.

IBCs can now be incorporated by both residents and non-residents, can do business locally and with residents, own land in Belize and hold shares in Belize domestic companies. Under the Income and Business Tax (Amendment) Act, 2018, IBCs doing business within Belize are now subject to both Belizean income tax and stamp duty and are required to file an income tax return.

Belize IBCs doing business in Belize will be subject to 1.75% of the chargeable income amounting to a sum greater than BZD 3 million, or 3% of the chargeable income amounting to a sum lesser than BZD 3 million. Taxes will need to be paid in US Dollars. Belize IBCs whose income is derived outside of Belize shall not be liable for payment of income tax in Belize. Capital gains, dividends, and interests received may be exempt from taxation. Payments to non-residents may be exempt from withholding taxes.

To qualify for the IBC regime, certain companies may be subject to physical presence and tax residency status:

  • the activities of a company must take place in Belize (i.e. company meetings);
  • all documents must be kept in Belize.
  • depending on the scope of activity, a company must employ a sufficient number of well-trained and qualified personnel who are physically present in Belize to carry out the company core income-generating activities
  • the expenditures shall take place in Belize (adequate for the scale of a particular business)
  • there is a requirement of a rented office in Belize (according to the scale of a particular business).
  • Conduct their control and management activities from Belize, either directly or through a management agency, including that board meetings are held in Belize and at least two directors are resident in Belize.

Most businesses may fulfill the physical presence requirement via hiring a management agency.

International Financial Services licensed companies and certain other businesses such as companies providing services to or trading goods with affiliates, holding companies and companies deriving income from intellectual property - must be physically present and tax resident in Belize.

Companies that wish to obtain a tax exemption certificate and non-resident status may need to prove economic substance and tax residency in another jurisdiction. 

Note that companies physically present in Belize may be subject to capital controls under the Exchange Control Regulations Act.

IBCs will be able to obtain Tax Identification Number (TIN) and may be required to file annual tax returns and financial statements. IBCs with receipts of at least USD 6,000,000 may be required to file audited financial statements.

IBCs registered before October 16, 2017, are allowed to grandfather their existing tax exemption benefits up to June 30, 2021 - at that time they will need to comply with all the above requirements.

For IBCs registered from October 17, 2017, to December 31, 2018, the above requirements are immediately applicable to them. A transition period of 1 year has been granted – whereby IBCs must take the appropriate steps to ensure they are compliant.

The country has implemented the OECD automatic exchange of information (AEoI) and has signed tax information exchange treaties (TIEa) with 18 countries.

Taxes

Corporate income tax – In December 2018, the National Assembly of Belize passed the International Business Companies (Amendment) Act, 2018, the Income and Business Tax (Amendment) Act, 2018, and the Stamp Duties (Amendment) Act, 2018.

Under the Income and Business Tax (Amendment) Act, 2018, IBCs doing business within Belize are now subject to both Belizean income tax and stamp duty and are required to file an income tax return.

Belize IBCs doing business in Belize are subject to 1.75% of the chargeable income amounting to a sum greater than BZD 3 million, or 3% of the chargeable income amounting to a sum lesser than BZD 3 million. Taxes will need to be paid in US Dollars. Belize IBCs whose income is derived outside of Belize shall not be liable for payment of income tax in Belize. Capital gains, dividends, and interests received may be exempt from taxation. Payments to non-residents may be exempt from withholding taxes.

IBCs registered before October 16, 2017, are allowed to grandfather their existing tax exemption benefits up to 30 June 2021 – at that time they will need to comply with all the above requirements.

For IBCs registered from October 17, 2017, to December 31, 2018, the above requirements are immediately applicable to them. A transition period of 1 year has been granted – whereby IBCs must take the appropriate steps to ensure they are compliant.

Other taxes – Tax residents and non-residents individuals are subject to income tax on their income derived from Belize. Income from foreign-source is not subject to taxation.

The personal income tax rate is progressive up to 25%. Capital gains are tax-exempt.

Belize levies a real property tax of 12.5% of the annual rental value for an occupied property, and a 2% tax on the annual rental value for unoccupied properties. Property tax may not exceed 2% of the market value of the property. There is a land tax of 1% for unimproved lands.

There is a stamp duty on the transfer of assets, rates depend on the asset class. Purchase of real property is subject to a 10% stamp duty. The sale of goods and provision of services may be subject to 12.5% General Sales Tax (GST).

  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • 0% Offshore Income Tax Rate
  • 3% Corporate Tax Rate
  • 0% Capital Gains Tax Rate
  • 0% Dividends Received
  • 0% Dividends Withholding Tax Rate
  • 0% Interests Withholding Tax Rate
  • 0% Royalties Withholding Tax Rate
  • 0 Losses carryback (years)
  • 0 Losses carryforward (years)
  • 25% Personal Income Tax Rate
  • 30 Tax Treaties

Country details

Belize
BZD
Belmopan
North America
e n - B Z , e s
314522

Belize, formerly British Honduras, is a CARICOM and SICA member. Located in the northeastern corner of Central America, bordering to the north with Mexico and to the south and the west with Guatemala. The capital is the city of Belmopan and the most populated city is Belize City, which has the main port of the country.

Although is the only Central American country with English as the official language, its just over 380,000 inhabitants speak predominantly Spanish and Creole. Its currency is the Belize Dollar (BZD), which is currently pegged to the US$ (2:1), but most commercial establishments accept US dollars.

Belize is a constitutional monarchy with a parliamentary system of government. The Head of State is Queen Elizabeth II, who is represented in the country by the Governor General.

The executive power is headed by a Prime Minister, who heads the Cabinet of 13 ministers, plus 5 deputy ministers, who represent the majority political force of the Belizean Parliament.

The legislative power is bicameral, composed of a House of Representatives of 31 members democratically elected for a period of five years and a Senate of 12 members appointed by the Governor General from proposals of the Prime Minister, the leader of the opposition and of Various religious, economic and social institutions.

The Belizean economy is the smallest in the Central American region, but it is the third largest in GDP per capita, only after Panama and Costa Rica.

Belize has an economy based primarily on agriculture and services. Domestic industry is limited, constrained by relatively high-cost labor and energy, and a small domestic market.

Tourism attracts the most foreign direct investment although significant foreign investment is also found in the energy, telecommunications, and agricultural sectors. The stability of the currency is one of the attractions for foreign investment.

Belize's exports of goods and services account for over half of its GDP. The export products mainly consist of seafood such as shrimp, followed by sugar, citrus products, bananas and small manufactures.

Its Barrier Reef (longest in the Western Hemisphere), 127 islands, excellent fishing, safe waters for boating, scuba diving, and snorkeling, abundant jungle flora and fauna, and numerous Mayan ruins has bolstered tourism and ecotourism industry.

Belize is a well-known offshore jurisdiction for its privacy policies, tax advantages for non-residents and its full tax exemption for its domiciled International Companies. Although its banking sector is not as large as other offshore financial centers, it is gaining popularity in recent years.

Tax treaties

Country Type Date Signed
Greenland TIEA 2010-09-15
Poland TIEA 2013-05-16
India TIEA 2013-09-18
Finland TIEA 2010-09-15
Barbados DTC  1994-07-06
Antigua and Barbuda DTC  1994-07-06
United Kingdom TIEA 2010-03-25
Iceland TIEA 2010-09-15
Netherlands TIEA 2010-02-04
Mexico TIEA 2011-11-17
Sweden TIEA 2010-09-15
Saint Kitts and Nevis DTC  1994-07-06
Trinidad and Tobago DTC  1994-07-06
Saint Lucia DTC  1994-07-06
Switzerland DTC  1954-09-30
Denmark TIEA 2010-09-15
Grenada DTC  1994-07-06
South Africa TIEA 2014-05-06
Ireland TIEA 2010-11-18
Jamaica DTC  1994-07-06
France TIEA 2010-11-22
Faroe Islands TIEA 2010-09-15
Guyana DTC  1994-07-06
Australia TIEA 2010-03-31
Norway TIEA 2010-09-15
Saint Vincent and the Grenadines DTC  1994-07-06
Dominica DTC  1994-07-06
Austria DTC  2002-05-08
Belgium TIEA 2009-12-29
Portugal TIEA 2010-10-22

Tax treaties Map

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Services

We can help you incorporate a International Business Company (Company limited by shares) in Belize for $1,550.


Description


We pride ourselves in providing the best possible professional service which includes our honest hassle-free “No Hidden Fee” policy. Your incorporation package includes:


Belize International Business Company (IBC) Formation – USD 1,550.00 (All Included)



  • All Applicable Registration and Government Fees

  • Certificate of Incorporation

  • Memorandum & Articles of Association

  • Appointment of Company Director(s)

  • Consent(s) to Act as Director

  • Corporation Inaugural Resolution

  • First Board Resolution

  • Share Allotment Letter

  • Share Certificate(s)

  • Register of Shareholders

  • Register of Directors

  • Corporate Documents’ Courier Delivery


Belize Limited Liability Company (LLC) Formation – USD 1,750.00 (All Included)



  • All Applicable Registration and Government Fees

  • Certificate of Organization

  • Articles of Organization

  • Appointment of the First Manager(s)

  • Register of Managers

  • Register of Capital Contributions

  • Certificate(s) of Ownership

  • LLC Operating Agreement

  • Registered Office & Registered Agent Service including all fees for the calendar year

  • Corporate Documents’ Courier Delivery


Time to form: 5 to 10 business days.


All our incorporation services include a yearly consulting session, a dedicated account manager and access to our global network of trusted business services, including introductions to accountants, financial, tax and legal advisors at no cost.


Annual Fees (Payable every 1 January) – USD 950.00


Including:



  • Government Annual Fees

  • Maintaining Minute Book, Registers and Statutory Records

  • Registered Agent Service Fees

  • Registered Office Fees


Bank Account Opening Support Services (Optional)


Bank Account Options:



  • Belize Bank Account (Remotely) – USD 300.00

  • Offshore Bank Account* (Remotely) – USD 300.00

  • Bahamas Bank Account (Remotely) – USD 500.00

  • Mauritius Bank Account (Remotely) – USD 500.00

  • Labuan (Malaysia) Bank Account (Remotely) – USD 500.00

  • Curaçao Bank Account (Remotely) – USD 500.00

  • Singapore Bank Account (In-person) – USD 900.00

  • Hong Kong Bank Account (In-person) – USD 1,200.00

  • Cayman Islands Bank Account (Remotely) – USD 900.00

  • Cyprus Bank Account (In-person) – USD 1,200.00

  • Bulgaria Bank Account (In-person) – USD 1,200.00

  • Armenia Bank Account (Remotely) – USD 1,200.00

  • Turkey Bank Account (Remotely) – USD 1,200.00


*Offshore Bank Accounts: Belize, Puerto Rico, Nevis, Antigua, Saint Lucia.  Other bank account options may be available depending on business profile and turnover.


Our Bank Account Opening Support Service includes:



  • Introduction to the Bank Manager

  • Bank Account Opening Process Management

  • Assistance and advice in filling out Business Questionnaires, KYC Forms and Bank Account Application Forms.

  • Certified Copies of Constitutional Documents with Apostille

  • Corporate Seal


Our banking service is not just a mere introduction to the bank. We assist you in filling out the business plan forms appropriately and help you understand and provide business details, commercial information and purpose/use of the bank account that a given bank wants to know in order to approve your account application.


Banks want certainty and clarity on how the account will be used. Everything must be watertight. We will work with you to make sure there is minimal ‘back and forth’ and a smooth account opening process


Directorship Services (Optional)



  • Directorship Service (Natural Person) – USD 800.00 p.a.

  • Directorship Service (Corporation) – USD 700.00 p.a.



Accounting Services (Optional)



  • 40 transactions – USD 1,200.00 p.a.

  • 150 transactions – USD 1,900 p.a.

  • Above 150 transactions – Request Quote


The provision of accounting services is compulsory if Flag Theory provides Directorship services.





Click here to incorporate your Belize IBC.

Incorporate now

Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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