Belize Corporate Income Tax

Business tax and corporate income tax

• Overview — Belize taxation of companies — Belize generally taxes companies under a gross-receipts business tax rather than a net-profit corporate income tax, with rates that vary by activity. A 25% net income tax applies to petroleum operations, and certain entities (e.g. IBCs) have special regimes.
• Tax base — Business tax is charged on gross receipts/revenue, not net profit (Income and Business Tax Act (Cap. 55))
• Business tax — trade or business (general) — 1.75% percent of gross receipts (general trade or business) (Income and Business Tax Act (Cap. 55))
• Business tax — radio, TV, newspaper, domestic airline, fuel service stations — 1.75% percent of gross receipts (Income and Business Tax Act (Cap. 55))
• Business tax — rents, royalties, premiums from real property — 3% percent of gross receipts (Income and Business Tax Act (Cap. 55))
• Business tax — professions, vocations, occupations — 6% percent of gross receipts (Income and Business Tax Act (Cap. 55))
• Business tax — telecommunications (real-time voice) — 19% percent of gross receipts ((approx — confirm rate)) (Income and Business Tax Act (Cap. 55))
• Petroleum operations income tax — 25% percent of net income (petroleum/oil operations) (Income and Business Tax Act (Cap. 55))
• International Business Companies (IBCs) — IBCs are within the Belize tax net but benefit from concessions; exempt-income IBCs may have nil/low effective rates subject to economic-substance rules ((approx — confirm current substance/tax treatment)) (International Business Companies Act)
• Withholding tax — dividends to non-residents — 15% percent ((approx — confirm current rate)) (Income and Business Tax Act (Cap. 55))
• Withholding tax — interest to non-residents — 15% percent ((approx — sources vary 15%/25%, confirm)) (Income and Business Tax Act (Cap. 55))
• Withholding tax — royalties to non-residents — 15% percent ((approx — sources vary 15%/25%, confirm)) (Income and Business Tax Act (Cap. 55))
• Withholding tax — management/technical fees, equipment rental — 25% percent ((approx — confirm rate)) (Income and Business Tax Act (Cap. 55))
• Business tax filing frequency — Monthly business tax returns; annual income tax return due 31 March ((approx — confirm monthly vs annual filing for entity type)) (Income and Business Tax Act (Cap. 55))