Taxes in Belize

Income Tax

Income tax is payable at a rate of 25% on taxable income for all employed person resident in Belize earning over BZ$26,000 (US$13,000) per annum; persons earnings less than this are exempted from the tax. The basic allowance is BZ$25,600 (US$12,800)

Business Tax

Businesses, Companies and self- employed persons earning in excess of BZ$75,000 per annum must be pay business tax. The rate varies according to business classification, as demonstrated by the table below. Business tax is paid monthly to the income Tax Department.

Business Tax  
Trade or Business 1.75%
Professional Services 6.0%
Commission and Royalties 5.0% & 15.0%
Rental Income 3.0%
Radio, On- air TV, and Newspaper Revenue 0.75%
Domestic Airline Revenue 1.75%
Insurance Institutions General Revenues 1.75%
Telecommunication Revenue 19.0%
Fuel/ Lubricant Revenue 0.75%
Casino and Gaming Revenues 4.0%
Real Estate Business 15.0%
Tour Operator & Travel Agents 6.0%

 

General Sales Tax 

The General Sales Tax (GST) is a consumer tax applied at a rate of 12.5% on goods and services in Belize; some basic good =s and services however, are zero rated while others are exempt. The tax is imposed on the mark- up value goods and services, and is payable monthly to the Department of GST.

 

 Hotel Tax

Business operating in the hotel industry, are also required to levy on additional hotel tax of 9%. The tax is charged daily, and paid monthly to the Belize Tourism Board (BTB)

 

Environmental Tax

Environmental Tax is charged on the C.I.F. (Cost, Insurance, and Freight) value of goods imported into Belize at a rate of 2%. Certain medicines and medicinal supplies for human use along with basic foodstuffs, such as rice, beans, potatoes, coffee, tea, butter, and butter substitutes, cheese, margarine, cooking oil, shortening, lard and lard substitutes, milk (in powder form), condensed milk, baby formula, sardines, meat of swine salted or in brine, corned beef, and salt are exempt. Goods made available from funds provided through grant agreements with external donor agencies, or funds borrowed from external financial institutions by the Government of Belize, or through a Government guarantee are also exempt from paying this tax. The tax is payable at the time of importation and is the liability of the importer.

Social Security Contributions

Social Security provides benefits for employed persons in cases or sickness, maternity, injury, or disability. These payments are to be filed and paid monthly to the Belize Social Security Board. Each Employer must ensure that employees are in possession of a valid social security card prior to hiring. The table below illustrates details values for each district.

Land Tax      

This tax is collected by the Department of Lands, and is assessed at a rate of 1% of the unimproved value of the land. The table below details values for each district.

 

Stamp Duty/ Transfer Tax

Stamp duty, also collected transfer tax, is payable on any transaction involving taxable land. Nationals and foreign Investors alike are required to pay 5% of the value

Property Tax

Property Tax is levied and controlled by City Councils and Town Boards in each district. Within the City of Belmopan the rate of property tax is set at 2% of the assessed value; the Belize City Council Utilizes the rate of 2.5% of the assessed value.

Excise Tax    

The Excise Tax is collected on locally manufactured alcohol, beer, cigarettes and soft drinks.

Import Duty & Revenue Replacement Duty

The Belize Customs Tariff is modeled from the Harmonized Description and Coding System (HS). The rates are based on the customs Value (Cost, Insurance, and Freight – CIF). Import   Duties are levied at the point of importation, and is the liability of the importer. The Belize Customs & Excise Department is responsible for the collection of import duties. Rates range from 0 to 45% with the majority of commodities attracting a rate of 20%

There are some items that attract a Revenue Replacement Duty (RRD) ranging from 5%- 40% based on the aggregate of the customs Value and the Import Duties. For the complete list of commodities attracting RRD visit the Belize Customs & Excise Department’s website –

http:/www.customs.gov.bz/duty03.html

Under the CARICOM agreement, all imported products entering Belize from a CARICOM member state are exempt from import duties. In order to receive an exemption, importers must produce a Customs brokerage services are necessary when importing goods.