Tax Regime

Persons who are earning more than $26,000 per year are charged a flat tax rate of 25%. Those who are employed and reside in Belize and whose total income per annum from all sources is less than $26,000 are exempt from Income Tax.

According to the Income Tax Department, workers who earn between 26,001 and 29,000 are eligible for two intermediary reliefs. The tax policy states those earning between 26,001 and 27,000 are eligible for a relief of 24,600 and those earning between 27,001 and 29,000 are eligible for a relief of 22,600. Those employed and earning over 29,000 get a personal relief of 19,600.

 

Example of income earning over $26,000:
Total Income:
Less Basic Personal Relief:
Chargeable Income:
$27,000
$24,600
$2,400
The $7,400 is taxed at 25%
Less: Standard tax deduction
Tax Payable to GOB
$600
$100
$500

 

Some Facts:

  • The filing date for the Income Tax Return is 31st March, unless otherwise approved by the Commissioner of Income Tax.
  • Penalties: 3% of the balance of the tax due for each month, or part of the month that your return is late, minimum of $10.00.
  • Interest charges: if there is a balance of tax after 31st March, a rate of 1.5% per month is charged until final payment is made.
  • refund becomes due when the tax payable is less than the tax deducted from income, or if tax was deducted and total income was below the new threshold of $26,000.
  • Other reliefs: Charity (maximum is $250); Education (maximum is $400 per child not your own).

For Further Information Contact:
Income Tax Department
Belize City
Tel: (501) 222-4956/4776/4005
Fax: (501) 222-4029

Any operation that is performed in Belize is required to pay business tax, The table below indicates those businesses in which business tax is applicable.

 

BUSINESS TAX IS APPLICABLE TO: BUSINESS TAX IS NOT APPLICABLE TO:
Individuals practicing his profession or firm in Belize Employee,on their employment income
Partnerships Receipts of Export Processing Zone businesses
Companies/Corporations operating in Belize Winnings from Boledo, Jackpot Lottery or any other
Lottery where the amount is less than $1,500 in value
Consultants, both Local (Resident) and Foreign (Non-Residents) Interest from notes or bonds issued by the Government of Belize
Any person who is in the business of providing Goods and Services in Belize Rental receipts less than $1,650 per month
Organizations based on their taxable receipts Interest on Savings and Term Deposits, if interest is not the income of a financial institution/investment company
Tour Operators, Tour Guides, Travel Agents, Commissions, Rental, Contracts, Dividends, Taxation of Non-Residents, Fishing, Books and Records of Accounts, Relationship to Sales Tax Receipts from Credit Unions, Charitable & Educational Institutions of a Public Character, Friendly Societies, Local Authorities, Religious Bodies and Statutory Boards.

 

Tax Rates

Businesses, companies, and self-employed persons are liable to pay business tax. These rates vary according to business classification:

  • Receipts from radio, on-air television, newspaper business, domestic airline business and service stations (Sale of Fuel and Lubricants); at 1.75%
  • Receipts of entities licensed to provide telecommunication services that offer real time voice services; 19%
  • Receipts from “Other Trade & Business” (items not otherwise specifically mentioned in the Act); at 1.75%
  • Rents, royalties, premiums and other receipts from real property; at 3%
  • Income from profession, vocations or occupation; at 6%
  • Earnings of an insurance company; at 1.75%
  • Receipts of institutions licensed under the Banks and Financial Institutions Act ; at 15%
  • Financial Institutions within a PIC group now pay 8% on their receipts, which previously were taxable at 4%
  • Gross earnings from gaming establishments and casinos taxable at 15%
  • Real Estate agents are taxable at 15% on their gross commissions
  • Receipts of entities providing electricity services; at 6.5%

Exemptions

as prescribed by the Income and Business Tax Act:

  • Receipts of any local authority where income is not derived from a trade or business managed by the local authority.
  • Earnings of any ecclesiastical, charitable or educational institutions
  • Any pension paid by any person or authority outside Belize to a retired person who is residing in Belize.
  • Payments received under any social security scheme or fund, whether made by a person resident in Belize or abroad, provided such payment are prove to the satisfaction of the Commissioner to be social security payments.
  • Interest from any debentures, treasury bills, treasury notes or bonds issued by or under the authority of the Government of Belize.
  • Interest payable by any person on capital used in specified development industries or projects
  • Interest payable by the Government on monies borrowed by it from, or debts owed by it to, sources outside Belize.
  • Earnings for other trade or business of less than $75,000 per annum and $25,600 for professions, vocations or occupations, where the earnings represent the only means of livelihood for that person.
  • The income from a scholarship, exhibition, bursary or any other similar educational donations held by a person receiving full time instruction at a university, college, school or other educational institutions.

Deductions

General Sales Tax must be deducted from total sales/receipts to arrive at Business Tax receipts:

  • General SalesTax collected
  • Charitable contributions of a minimum of $500.00 and up to $30,000.00 per year
  • Earnings Replacement Duty on fuel paid on importation
  • Excise duty
  • Supply sales by the quantity fuel importer to another quantity fuel supplier
  • Funds received as an agent.
  • AccommodationTax provided for under the Hotels & Accommodation Act

The Business Tax Return and any taxes due must be filed by the 15th day of each month, covering all receipts for the previous month.

Penalties

Penalties are accounted for those individual or organizations who do not comply with the filing and payment deadlines and they are as follows:

  • Late orNon-Filing – 10% of the tax due every month or part of the month that thereturn remains outstanding, minimum of $10.00 for a maximum of twenty-four (24)months.
  • Late or Non-Payment – a charge of 1.5% per month on all unpaid balance from the time itwas submitted to date of payment.
  • Failure toFile a return – A fine of at least $10,000 will be charged if taxpayers fail toreturn a file or two year imprisonment.

Taxation to Non-Residents

All non-CARICOM residents, who have any taxable receipts originating from Belize, or in respect of any service provided in Belize, are required to pay business taxes as follows:.

 

Dividends 15%
Insurance Premiums 25%
Interest on Loans 15%
Management fees 25%
Rental of plant and equipment 25%
Technical Services 25%

 

Generally CARICOM residents pay at 15% on the same services.

The Department of General Sales Tax is responsible for administration of the General Sales Tax pursuant to the General Sales Tax Act # 8 of 2005. Its main functions are revenue collection, registration of agents and auditing of agents’ accounts to safeguard revenueand ensure compliance.

The Government of Belize implemented the General Sales Tax (GST) on 1st of July 2006. GST is referred to as a Tax on consumer spending, collected in stages; that is, at the point of importation and on business transactions when goods change hands or services are performed.

Registration

A business that makes or intends to make taxable supplies, that is Sales or gross revenues of $75,000 or more per anum must register for GST. Where the business has been in operation for less than 12 months and the average taxable sales or revenues is $6,250 or more per month over a period of four months, the business is deemed to be eligible for registration, and must register for GST. (download form)

Scope and Coverage

Generally, GST is chargeable on the supply of most goods and services within Belize, the only time this does not apply, is if the goods or services are either exempt or zero rated. Exempt supplies include financial services, some medicines and medical supplies for human use and supplies connected with agriculture. Some zero-rated supplies are rice, flour, bread, eggs, fresh meat, beans, sugar and baby formula as well as locally produced fresh fruits and vegetables. (View GST Exempt List).

Input Tax

When goods are imported or a purchase of a goods or service is done for your business, GST is chargeable on the transaction. GST on purchases is called input tax. This tax can then be recovered from the Department of GST when a GST return is filed.

Output Tax

When a product from your business is sold or in cases in which your business provides services consumers, if those goods or services are liable to GST, the final selling price charged on the good or service needs to incorporate GST. GST on sales is called output tax.

Completing the GST Return (download form)

The GST records simply consists of the tax invoices for each purchase and tax invoices and or tax receipts for each sale made during the tax period (from the first day of the calendar month to the last day of the calendar month). Information from the invoices and tax receipts are recorded in the GST purchase and GST sales journals. After the end of the month, the totals for the month are inserted into the relevant lines of the GST return.

Boxes 100 to 160 of the GST return is where a registered person will include all particulars of his/her output tax.

Boxes 200 to 295 of the GST return is where a registered person will include all particulars of his/her input tax.

The difference between output and input tax will represent the registered person’s tax liability or credit due for the particular tax period.

GST Visit

Registered business operations will be required to have available proper books and records of business transactions for audit by General Sales Tax Officers. Proper books and records include:

  • The GST account
  • Books of account (on paper or computer)
  • Till tapes
  • Credit and debit notes
  • Tax invoices
  • Bank statements
  • Invoices
  • Stock-on-hand records
  • Vouchers
  • Motor vehicle logbooks
  • System and program documentation that describes the accounting system
  • Charts and codes of account
  • Any other documents that verify transactions or entries in any books of account

 

For Further Information Contact:
The GST Office
Commissioner of Sales Tax
Government Administration Bldg
Mahogany Street
Belize City
Tel: 501 -222-5574 or 501-222-5579
Fax: 501 -222-5513
Web: http://www.gst.gov.bz/index.html
Email:  generalsalestax@gst.gov.bz

The Land and Surveys Department, under the Ministry of Natural Resources and the Environment (MNRE) has prime responsibility for all aspects of land tenure in Belize. The department’s primary functions are:

  • Management and allocation of national lands
  • Registration of Land Tenure
  • Authentication of Plans for alllegal surveys
  • Sub-division of lands
  • Valuation of Lands
  • Land Use Planning
  • Land Information Management

Structure of the Department

The department is headed by the Commissioner of Land and Surveys, who is guided by the relevant Acts. The Commissioner is supported by two Deputy Commissioners who assist by dealing with technical matters regarding land tenure, policy implementation, and related administrative issues.

To effectively administrate each function, the department is organized into “Sections” and services are delivered through the following Sections:

National Estate

Processing of application of national land, land transfers and other related activities

Surveys and Mapping

Approval of plans and map creation, adjustments and permission to survey

Land Information Center

Manages the department’s GIS and provides maps and statistics to internal and external customers

Valuation

Determination of values for land

Revenue

Collects revenue generated by the department’s activities

Land Registry – titles

Registration of transactions in land within compulsory registration areas (Land Registry) and other unregistered lands (Land Titles)

Physical Planning

Responsible for approval of sub-divisions plans and promotion of National land use planning network

Each section is further supported by six district lands offices whose main functions are to collect taxes and rents, accept applications for land related services, and assist in settling land disputes. Though each section has a specific focus,the activities are inextricably linked and sections are dependent on each other to provide the required services to the public.

The department performs its functions in accordance the following principal acts and the regulations made there-under;

  • Bills of Sale
  • General Registry
  • Land Acquisition (Public Purpose)
  • Land Acquisition (Promoters)
  • Land Adjudication
  • Land Surveyors
  • Land Tax
  • Land Utilization
  • Registered Lands
  • National Lands
  • Private works construction
  • Administration of Estates
  • Law of Property
  • Strata Titles Registration

Courtesy: World Bank’s Doing Business Report

Registering Property in Belize

 

Registering Property in Belize
Procedure Time to Complete Cost to Complete
Conduct a search of the property
records at the Lands Department
1 Day NO COST
*Obtain tax clearance from the
Lands Tax Department
1 Day
(Simultaneous with
procedure 3)
NO COST
*Tax clearance stamped on
the transfer instrument
5-10 days
(Simultaneous with
procedure 2)
NO COST
Property is valued by the
Valuation Department
10-30 days NO COST
Justice of the Peace attests
the transfer instrument
1 Day NO COST
Pay registration fees and
stamp duty
1 – 2 Days 15 BD x 2 (for land certificate and
registration) + 5% (property value
after the first BD 20000) (stamp duty)
Register the transfer at the
Lands Registry
21 – 30 days (paid in procedure 6)
Notify City Council of changes in ownership 1 – 2 days NO COST
* Takes place simultaneously with another procedure.

 

Land Tax

This tax is collected by the Department of Lands, and is assessed based on the unimproved value of the land. The table below details the values for each district represented in Belize Dollars ($BZD).  Land is taxed at the rate of 1%.

 

Declared Unimproved Values per Acre (by District)
Categories Corozal and
Orange Walk
Cayo Belize Stann Creek Toledo
Agricultural
l30 acres or less
$ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00
Agricultural
31 to 300 acres
$ 500.00 $ 550.00 $ 600.00 $ 500.00 $ 100.00
Agricultural
301 acres or more
$ 600.00 $ 650.00 $ 700.00 $ 600.00 $ 300.00
Sub-urban $ 1,000.00 $ 1,000.00 $ 1,500.00 $ 700.00 $ 500.00
Beaches & Cayes $ 10,000.00 N/A $ 10,000.00 $ 10,000.00 $ 5,000.00
Village lots
(1 acre or less)
$ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 500.00

 

Stamp Duty/Transfer Tax

Land Tax or Stamp duty or Transfer tax is governed by the Stamp Duties Act, Chamber 64 of the Laws of Belize. This tax is payable collected to the Department of Lands, and is assessed based on the unimproved value of the land.  Both Nationals and foreigners are required to pay 5% of the value of the land. If the value of the land is below US$10,000, then the land is tax exempt.

The table below provides a schedule of fees based on the type of transaction for acquiring land.

 

Fee Schedule
CHARGES
Form No. Transaction Stamp Duty Registration Certificate
R.L.1 Transfer of Land 5% & 10% of purchase price or market value $ 15.00 $ 15.00
R.L. 2 Transfer of Lease 5% & 10% of purchase price or market value $ 15.00 $ 15.00
R.L.3 Transfer of Charge $0.30 on every part of $50.00 $ 15.00
R.L.4 Transfer of chargee in
exercise of power of sale
5% & 10% of purchase price or market value $ 15.00 $ 15.00
R.L.5 Transfer of profit
R.L.6 Transfer by personal representatives $ 15.00 $ 15.00
R.L.7 Lease or sublease $0.75 – $6.00
R.L.8 Charge $15.00 to every $1,000 and $0.75 on part of $50.00 $ 15.00
R.L.9 Discharge of charge $0.30 on every $50.00 or part thereof $ 15.00
R.L.10 Surrender of Lease $ 15.00
R.L.11 Grant of easement $ 15.00
R.L.12 Grant of profit 5% & 10% of purchase price or market value $ 15.00
R.L.13 Release of profit, easement or restrictive agreement $ 15.00
R.L.14 Application for partition $15.00 for each resulting parcel
R.L.15 Power ofattorney $ 15.00 $ 15.00
R.L.16 Notice of revocation of power of attorney $ 15.00
R.L.17 Application to be registered as proprietor by transmission $ 15.00 $ 15.00
R.L.18 Caution $ 15.00
R.L.19 Application for first registration $ 5.00
R.L.20 Notice of intention to appeal the Supreme Court $ 15.00
R.L.21 Application to inspect the register $ 5.00
R.L.22 Application for certified/uncertified copy $20.00 & $10.00, respectively
R.L.23 Application for official search
R.L.24 Certificate of official search
R.L.25 Mutation $15.00 per
resulting parcel
$15.00 per
resulting parcel
(a) Application to combine/subdivide $15.00 on each resulting parcel $15.00 on each resulting parcel
(b) Variation of charge $15.00 to every $1,000 and $0.75 on part of$50.00 $ 15.00
(c) Transfer of undivided shares 5% & 10% of purchase price or market value $ 15.00 $ 15.00
(d) Deletion of death of a joint proprietorship
(e) Severance of joint proprietorship $ 15.00 $ 15.00
(f) Forfeiture of lease No charge
(g) Termination of lease No charge
(h) Withdrawal of caution
(i) Rectification of the register
(j)
Variation of the term of lease $ 15.00 $ 15.00
Application for lost land/lease certificate $100.00 for publication fee $15.00 for replacement certificate

 

Property Tax

Property tax is levied and controlled by the respective city councils in each district.Within the City of Belmopan the rate of property tax is set at 2% of the site value as assessed by the Belmopan City Council. On the other hand, the Belize City Council utilizes the rate of 2.5% of the assessed value.

Municipal Garbage Disposal Rates

The Ministry of Labour, Local Government and Rural Development in accordance with the Town Councils (Control of Refuse) By-Laws 2005 (Statutory Instrument No. 13 of 2005) has declared the following rates for the collection of garbage for 2011-12.

MUNICIPAL GARBAGE RATES
COROZAL TOWN COUNCIL 
Commercial garbage $40.00 per month
Mo’ Supermarket, 5th Avenue $40.00 per month
Young Feng Store, 5th Avenue $40.00 per month
Ri You Lin, Santa Rira Road $40.00 per month
Chico’s Tortilla Factory, 7th Avenue $40.00 per month
Circle K, 6th Street South $40.00 per month
Felice Restaurant, Park Street South $40.00 per month
Sky Blue Restaurant, Park Street South $40.00 per month
Las Palmas Hotel, 5th Avenue $35.00 a load (treess, branches, concrete debris etc.
Excess garbage for residents $50.00
Pickups/Van $75.00
ORANGE WALK TOWN
Large Business $52.00 per month
Medium Sized Businesses $13.00 – $26.00 per month
Small Businesses $8.00 – $13.00 per month
BELIZE CITY COUNCIL
Mom and Pops $10.00
All Business establishments except Mom and Pops
First Cubic yard of Garbage $34.20
Additional garbage above the first cubic yd. $24.20
5% penalty on late payment of fees
Dump Site Fees
First Cubic yard of Garbage $32.00
Additional garbage above the first cubic yd. $22.00
SAN PEDRO TOWN COUNCIL
Restaurant
Deli/Fast Food $25.00 per month
Medium $75.00 per month
Large $125.00 per month
Hardware
Small $100.00 per month
Large $200.00 per month
Hotels/Resorts
Small $150.00 per month
Medium $200.00 per month
Large $250.00 per month
Resort $300.00 per month
Shops/Supermarkets
Shops (small) $50.00 per month
Shops (large) $75.00 per month
Supermarkets $250.00 per month
Bars $50.00 per month
Clubs $75.00 per month
Gift Shops $100.00 per month
Meat Shops $75.00 per month
Golf Cart Rentals $75.00 per month
Fruit & Vegetable Shop
Small $75.00 per month
Large $125.00 per month
Banks $25.00 per month
Real Estate $25.00 per month
Free to enter Dump site
Small Vehicle $5.00 per trip
Large Vehicle $10.00 per trip
Apartments with more than 4 units $10.00 per apartment per month
Rooms more than six (6) $50.00 per month
Residential $10.00 per month
BELMOPAN CITY COUNCIL
Residential $5.00 per month
Commercial Fees $12.00 per month for small business
$25.00 per month for medium business
$50.00 per month for large business
Refuse and Debris $75.00 per load (14 cubic yards)
BENQUE VIEJO TOWN COUNCIL
Household Garbage $6.00 per month
Small Businesses $15.00 per month
Medium Business $25.00 per month
Large Businesses $45.00 per month
DANGRIGA TOWN COUNCIL
Household garbage $8.00 per month
Commercial large Businesses $80.00 per month
Commercial Medium Businesses $40.00 per month
Commercial Small Businesses $20.00 per month
Garden/Yard Waste $25.00 per cubic yard
Construction Waste $25.00 per cubic yard
White Goods $10.00 per unit minimum rate
(Freezers/Refrigerators’/Stoves/AC/Washers)
Derelict Vehicle
Cars $50.00
Pickups/Van $75.00
PUNTA GORDA TOWN COUNCIL
Household Garbage $5.00 per month
Small Businesses $30.00 per month
Large Businesses $10.00 per week
Garden/Yard Waste $15.00 per cubic yard
Construction Waste $15.00 per cubic yard
White Goods $5.00 per unit minimum
Refrigerator/range/computers/AC Unit/Freezer – $7.00 per unit
Derelict Vehicles $25.00 per car; $35.00 per pickup/van/other
How can we help you?

Contact us at the The Belize Chamber of Commerce and Industry  office or submit a  inquiry online.
If you prefer speaking to someone, please call:
Tel: +501-223-5330 / 5331

Joining the Belize Chamber of Commerce and Industry