Income Tax, Business Tax, Environment Tax and Sales Tax policies

All persons resident in Belize and earning less than US$10,000 per annum are exempted from the payment of Income tax. The basic allowance for all employed taxpayers resident in Belize is US$9,800. Persons earning more than US$10,000 a year are charged a flat rate of 25%25.

Businesses, companies and self-employed persons are liable to pay Business Tax. The vast majority of businesses in Belize pay tax at a rate of 1.25%25. Business Tax rates vary according to the business classification and range from 0.75%25 on receipts from radio, on-air television, newspaper, domestic airline and service station businesses to 15%25 on commissions, royalties, discounts, dividends, winnings from lotteries and interest on loans paid to non-residents.

Some exemptions from the Business Tax include:

• Receipts from trade, business, profession or vocation of less than US$27,000.00 per annum

• Rental receipts of less than US$825.00 per month where rent forms the only source of livelihood of the individual Interests from any debentures, treasury notes or bonds issued by or under the authority of the Government of Belize Receipts of any local authority, statutory board or corporation or friendly society or credit union or ecclesiastical, charitable or educational institution Interest or earnings paid to individuals by financial institutions in Belize Charitable gifts amounting to US$250.00 or more made to Belizean sports, ecclesiastical,charitable, educational or cultural purposes

• Receipts from an Export Processing Zone business

For Additional Information Contact:

Income Tax Department
Mahogany Street Govt Complex 2nd Fl
Tel: (501) 222-4956, 4776, 4005, 4780
Fax: (501) 222-4029
Email: citbze@btl.net

Under the Environmental Tax (Amendment) Act, 2001, there shall be charged, levied and collected on every good imported into Belize an Environmental tax of 1%25. The tax shall be in addition to the customs duties levied under any customs law.

Certain prescribed medicines and basic food stuff and goods are exempted from the tax.

The proceeds of the Environmental Tax shall be placed into a special fund and shall be used to develop a national solid waste management program, to defray the cost of the disposal of refuse generated by the use of goods in plastic bottles, containers and other packaging materials of plastic, to assist in the collection and disposal of garbage throughout Belize, to clean up rivers and canals and other internal waterways, for the preservation and enhancement of the environment and for strengthening the institutional capacity of the Department of the Environment.

Under the Sales Tax Act, 1999, producers of goods and providers of services whose taxable proceeds exceed $4,500Bz ($2,250US) in any one-month or $54,000Bz ($27,000US) in any one year must register as sales tax agents. Sales tax agents must charge Sales Tax on goods when they sell it or at the time the services are provided. The Sales Tax is chargeable at two rates: 12%25 tax on alcohol, tobacco and fuel and an 9%25 tax on all other goods and services. Additionally, the Sales Tax is charged on all taxable goods and services imported into the country. Sales Tax Agents are required by law to pay monthly to the Government the relevant Sales Tax that they collected.

Sales tax agents may be exempted from the payment of this tax for the purchase of goods from any other sales tax agent by providing a completed and signed tax exemption certificate. This tax exemption certificate must be approved beforehand by the Commissioner of Sales Tax as being essential to the production of the final product.

Other goods and services exempted from the Sales Tax include:

• The supply of electricity and water (not in bottles for sale)

• Imports bound for either an Export Processing Zone or Commercial Free Zone

• Goods exported from Belize
• Hotel accommodation charges

• Goods or services made available from funds provided by grant agreements or borrowed from external financial institutions Financial services by institutions not licensed under the Banks and Financial Institutions Act

• Basic food items such as rice, flour, bread, corn, fresh meat, eggs, beans and sugar

• Some medicines and medical supplies for human use

For Further Information Contact

Sales Tax Department
Mahogany Street Government Complex 2nd Fl
Tel: (501) 222-5574
Fax: (501) 222-5513
E-mail: salestax@btl.net