Belize and U.K. tax treaty....

[bigladsmith]

Hi all,

I’m wondering in a very simplistic was what does this treaty do. For example

If I have a Belize Ltd company I now have to pay 3% tax, complete accounting exercises and file returns etc. No issues with the increased compliance and small amount of tax but as both countries have a tax treaty and I’m a U.K. non resident for tax purposes does this treaty help me at all?

Is it a case that the treaty means I’d not need to be taxed in the U.K.?

Does it mean that instead of the U.K. taxing me personally at 40% it would be reduced to 37%?

I’m new to all of the treaty stuff as you can no doubt see.

Happy to hear thoughts and opinions

Thanks - BLS

 

[Spinat]

You want to use the Google search for this forum, this is a great explanation of all of this tax introduction in Belize here already.

I did the search for you Belize introduce corporate tax of 1,75% to please the banks.

 

[Tax Cow]

Tax treaty in of itself does not grant reduced tax rates.

You must file a form to HMRC to claim treaty benefits. Look up their web site for details.

1. To qualify for reduced treaty rates, you will need Certificate of Tax Residence from Belize.
2. To get Certificate of Tax Residence from Belize, you will need to fulfill certain economic substance criteria. An offshore IBC with no PoEM in Belize will not qualify.

With a typical offshore IBC, you can claim "dollar for dollar" (pound for pound) tax credit. If you show proof that you paid USD 1000 of income tax in Belize, then HMRC will deduct USD 1000 from your UK income tax bill.