Belize

Belize is less-known tax heaven, located on the coast of Central America. Belize borders with Mexico and Guatemala.The capital of Belize is Belmopan.The official languages are English and Spanish.The official currency of Belize: the Belize dollar (BZD), is fixed at its exchange rate to the US dollar at 2 BZD/USD.

Beware of news – in August 2021, the government in Belize approved changes in legislation

The Government of Belize has adopted an amendment to the Income and Business Tax (amendment Act 2021), which introduces several changes to the IBC:

  • From September 1, 2021, the government fee for establishing a company registered in Belize will increase. At the same time, from 1 January 2022, the annual renewal fees also increase. The increase applies to any renewal fees due after that date. 

Changes do not apply to the formation and renewal of companies with more than $ 50,000 in share capital.

  • Companies can take advantage in the form of payment of renewal fees for three years in advance at the current price. In this case, the fees must be paid no later than December 10, 2021. Please note that it will not be refunded after payment.

We also remind you of the deadline for filing a tax return:Companies established before October 17, 2017 must file their first tax return no later than March 31, 2022 for the fiscal period July 2021 – December 2021.

Description and advantages of Belize offshore company

  • For offshore purposes is used the International Business Company (similar to Czech s.r.o.)
  • Unlimited amount of share (basic) capital of the company, this capital do not have to be paid
  • Advantageous for the registration of ships and vessels
  • The use of nominee service (nominee shareholder and nominee director)
  • Confidential commercial register – data on persons involved in the company has a registered agent only

International Treaties

International treaties to curb money-laundering and the financing of terrorism

Belize has signed these treaties. Practical importance of these agreements for the owners of offshore companies is particularly in the case of suspicion of money laundering or terrorist financing by authorities against the Belize company. In this situation the registered agent is allowed to disclose the personal data of persons involved in the company and the basic description of its activities to authorities and further according to international cooperation transmit the data to other country as well to the Czech Republic.

Double Taxation Avoidance Agreements between Belize and the Czech Republic

Is not concluded. To direct payments from the Czech Republic to Belize is necessary to apply withholding taxes. Belize offshore company is not suitable for direct sale of goods or services into the Czech Republic.

Tax Information Exchange Agreements between Belize and the Czech Republic

Is not concluded.

Convention on Mutual Administrative Assistance in Tax Matters

It is concluded – a lower level of anonymity of property. Provides the possibility of exchange of information in tax matters.

Common usage of Belize company

  • holding, parent company, other companies for the purpose of anonymous property
  • direct sale of goods and services where there is no need to use Double Taxation Avoidance Agreements and there is no risk of withholding taxes – eg. within other offshore destinations
  • registration of ships and vessels
  • means to obtain Belize citizenship

The Advantages

By incorporation in Belize the business receives a wide variety of competitive advantages, including:

  • international level for performing business
  • no requirements for profession or financial situation of directors
  • no reporting requirements
  • no accounting requirements
  • no duty on any type of income
  • legal exemption from tax
  • the highest level of privacy
  • stable jurisdiction with very good reputation
  • bearer shares are permitted
  • companies registered in Belize shall be exempt from any type of taxation, they have a capacity to perform any types of business and may have clients, suppliers and employees from any country

Watch tax update 2019

Edit
FEATURES BEFORE JANUARY 1, 2019
NOT REQUIRED
AS OF JANUARY, 2019
WITH PHYSICAL PRESENCE
AS OF JANUARY, 2019
NO PHYSICAL PRESENCE
Residency and property ownership Restricted – not to include land, shares, debt obligations and other assets in Belize Not Restricted Not Restricted
Shareholding Ownership Restricted to non-residents of Belize Not Restricted Not Restricted
Subject to Income and/or Business Tax No Yes Subject to tax if income/receipts sourced from Belize, otherwise not subject to tax
Filing requirement No File annual tax return, pay monthly business tax. File annual tax return if income/receipts sourced from Belize. Otherwise, optional to file annual tax return.
Dividends (paid or received) Tax exempt Tax exempt Tax exempt
Interest (paid or received) on bonds Tax exempt Tax exempt Tax exempt
Standard currency USD USD with operational activities conducted in Belize subject to BZD USD
Exchange control permit No Yes No
Stamp duty No No, unless IBC owns property in Belize other than shares in another IBC No, unless IBC owns property in Belize other than shares in another IBC
Physical presence Not required Mandatory for licensees of the International Financial Services Commission (IFSC) Optional for Others not having an IFSC license
Accounting records Yes Yes Yes
Audit requirements No May be required by the Commissioner of Income Tax if annual receipts are at least US$6mn May be required by the Commissioner of Income Tax if annual receipts are at least US$6mn
Tax resident in Belize No Yes No
Certificate of Good Standing (CGS) requires tax compliance No Yes Ano

Tax rates in Belize

Edit
Type of business / activity Rate % on gross Income
Commissions and royalties 5.0% & 15.0%,
0% for non-residents
Local dividend withholding tax 15%,
0% for non-residents
The interest income from financial institutions 6%, 12% & 15%,
0% for non-residents
Income of radio, television, and newspapers companies 0.75 %
The income of service stations including fuel/lubricant 0.75 % & 1.75 %
Income of national airlines 1.75 %
Insurance premiums 1.75 %
Regular trade or business 1.75 %
Services for the supply of electricity 1.75 %
Rental Income 3.0 %
Casino and gambling 8.0 %
Real estate business 1.75 % & 15.0 %
Tour operators and travel agencies 6.0 %
Construction 1.75 % & 6 %
Professional services 6.0 %
Dividends paid by telecommunications service provider 0 %
Revenues from telecommunications provider 19.0 %
International financial services (IFSC License Holders) 3 %

What is included

  • annual license fee
  • company director and company office – the fee until 31st of December

Belize offshore company incorporation

Belize currently offers one of the most competitive and attractive offshore jurisdiction in the world in connection with confidential offshore law. Belize is the only country in Central and South America with English as an official language.

Taxes

Mainland country with a diversified national economy, Belize does not stand out as a distinct “tax heaven”.

Belize has modern International Business Companies Act, Hedge funds law and Offshore banks Act, all focused on providing the best environment and benefits for international investors and entrepreneurs. These laws are effectively supported by the financial service sector.

Belize does not disclose information even on suspicious of tax evasion or similar reasons. In addition it is completely tax-free the Belize IBC has no requirement for the minimum amount of paid-up capital, also no requirements for providing reports on the accounts.

Bearer shares

No record of directors and shareholders in a public register, the availability of bearer shares (immobilized).

Confidentiality

Client confidentiality is strongly grounded in Belize business legislation. In Belize legal system is also grounded the prohibition of sharing information, confidentiality and sharing agreements which protects the law and judiciary. In these respects Belize is sufficiently secure and confidential offshore jurisdiction.

Belize IBC is an ideal tool for all international business or services.

Types of companies

  • Limited, LTD
  • Corporation , CORP
  • INC
  • Socite Anonyme , S.A.
  • Aktiengesellschaft, A.G.

Belize Bank Account

Additionally, we can help you with opening a bank account in Belize for your company.

Interested in more?

Complexity

Establishment of the company, its settlement, delivery of apostilled documentation, bookkeeping. All under one agency.

Support

Do you have a foreign company and don’t know if you have fulfilled all your legal obligations? We can help you to check and comply with all government requirements.

Management

Are you dissatisfied with the performance of your directors? Are they not meeting deadlines? Try us.

Fair price

Do you already have an offshore company? Do you want better conditions? Change your registration agent.

Parker & Hill

Reliably & happy to help you