Belize: Personal Taxation

Belize Residence and Liability for Taxation

The Income Tax Department administers the Income and Business Tax Act as amended in Act 19 of 1998. This Act provides for the taxation of employed persons on the basis of their emoluments. See Direct Corporate Taxation for details of the Business Tax which applies to companies and self-employed professionals or business-people who are taxed on their gross turnover.

Generally, non-Belizeans in Belize pay tax only on income derived in Belize. There are no capital gains or inheritance taxes in Belize.

The rate of tax on chargeable income is 25%.

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Belize Income Tax

Effective from 1 January 2011, a new tier system for personal income tax was introduced. The allowances are as follows:

Belize Social Security Taxes

In general, any employment in Belize under a contract of service or apprenticeship, written or oral is insurable employment. This includes employment with the Government and all statutory bodies, employment with a company or firm or by an individual, and employment on board vessels and aircraft whose owner resides or has his principal place of business in Belize.

The employer is responsible for registering employees. When a person is registered as an insured person, the Social Security Board will issue to him/her a " Social Security Registration Card ". The registration Card will show that person's Social Security Number, which he/she must use as reference on all correspondence, claims, etc. when dealing with the board.

For weekly earnings under BZD70, the contribution is BZD4.40 (employer BZD3.57, employee 83 cents).

For weekly earnings up to BZD109.99, the contribution is BZD7.20 (employer BZD5.85, employee BZD1.35).

For weekly earnings up to BZD139.99, the contribution is BZD10.40 (employer BZD8.45, employee BZD1.95).

For weekly earnings up to BZD179.99, the contribution is BZD12.80 (employer BZD9.65, employee BZD3.15).

For weekly earnings up to BZD219.99, the contribution is BZD16.00 (employer BZD11.25, employee BZD4.75).

For weekly earnings up to BZD259.99, the contribution is BZD19.20 (employer BZD12.85, employee BZD6.35).

For weekly earnings up to BZD299.99, the contribution is BZD22.40 (employer BZD14.45, employee BZD7.95).

For weely earnings over BZD300.00, the contribution is BZD25.60 (employer BZD16.05, employee BZD9.55).

A contribution of BZD2.60 is payable by the employer for employees who aged 60 – 64 years and who have received, or are receiving Social Security Retirement Benefit, and for all employees aged 65 years and over. This provides employment injury coverage for these employees.

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Belize Stamp Duty

The cost of a transfer of title to real property is 10% of the value for Stamp Duty and a token fee for registration.

Unless there an agreement to the contrary these costs are usually shared between seller and buyer.

Other types of transaction are also stamped, at various rates, especially if they involve the Government.

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Belize Goods and Services Tax

On July 1, 2006, a new 10% Goods and Services Tax (GST) went into effect in Belize. On April 1, 2010 the rate increased to 12.5%. The GST replaced the 9% sales tax which had been in effect since April, 1999.

The GST applies to most goods and services, including some real estate transactions and all hotel and tourism charges. Exceptions are certain food items, including rice, flour, bread, fresh fruits and vegetables, chicken, and fish. Also, electricity useage of less than BZD200 a month won't incur the GST.

The GST is similar to a value added tax in that the tax will be included in the price of goods and service before purchases, rather than added on at the sales point at time of purchase.

The following goods and services are exempt from the application of the GST regime:

• Supply of electricity;
• Supply of gasoline, kerosene, diesel and gas oils (from March, 2011);
• Supply of water and sewerage services (but not bottled water);
• Provision of financial services by institutions not licensed under the Banks and Financial Institutions Act which are closely related to financial intermediation, market intermediation, risk pooling, and credit purchase services, including services performed by credit unions, cooperative societies, building societies, mortgage finance institutions and moneylenders;
• Goods in transit through the national customs territory bound for a Belize Export Processing Zone, a Belize Commercial Free Zone, or a destination outside the country;
• Goods exported from Belize as verified by the Comptroller of Customs;
• Accommodation charges that are subject to the accommodation tax levied under the Hotels and Tourist Accommodation Act;
• Goods or services which are made available from funds provided under grant agreements with external donor agencies, or funds borrowed from external financial institutions by the Government of Belize, or under a Government Guarantee, to assist the economic development of Belize;
• Basic foodstuffs;
• Some medicines and medical supplies;
• Some agricultural chemicals;
• Fees and charges collected from students for services provided by a private school registered under the Education Act, or an educational institution that is approved for this purpose by the Minister of Education;
• Text books, school work books and other educational texts;
• Equipment and furniture for the use of recognized educational institutions as certified by the Ministry of Education;
• Labour services in connection with the construction of buildings for educational use provided to private schools registered under the Education Act, or educational bodies approved for this purpose by the Minister of Education;
• Transport of passengers in any vehicle, ship or aircraft designed or adapted to carry not less than 12 passengers or on any scheduled flight, vehicle or vessel;
• Freight services, provided that the provision of this service does not form a part of the provision of any other service;
• Services rendered to persons not resident in Belize; provided that the services do not relate in any manner to any land or building situate in Belize, that the services are not utilized in Belize and the benefit of the supply is not derived by any person or entity within Belize, and that the services are paid for in a currency other than the currency of Belize.

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