Tax
Business tax on turnover, with no capital gains tax
Belize taxes businesses primarily on gross receipts rather than profit, under the Income and Business Tax Act. General sales tax is 12.5%, and there is no capital gains tax and no inheritance tax, which is central to Belize's use in cross-border structuring.
Key rules
- Business tax is charged on gross receipts at rates by activity, commonly 1.75% for trade and 6% for professional services.
- Companies in the petroleum sector and certain regulated activities are taxed on chargeable income at 40% and 25%.
- General sales tax is 12.5% with registration required above BZD 75,000 of annual turnover.
- There is no capital gains tax, no estate duty and no inheritance tax.
- Economic substance and country-by-country reporting obligations now apply to in-scope entities.
Governing law
- Income and Business Tax Act (Cap 55)Business tax on receipts and income tax.
- General Sales Tax Act (Cap 63)GST at 12.5%.
- Economic Substance Act (No 15 of 2019)Substance and reporting.
In practice
Taxing gross receipts means loss-making businesses still owe business tax, which is the single most common surprise for new entrants. Former IBCs are now within the domestic tax net and must obtain a TIN and file, even where the effective liability is nil.