Belize introduce corporate tax of 1,75% to please the banks.

TurnedToRobot

Trusted Member
Business Angel
It seems indeed that Belize is lining up for a tax dance which they will lose badly. There are still places around which allow 0% tax on corporate tax they will be the winner for now. There is another discussion about it here on the forum but can't find the thread right now.
 

clemens

Corporate Services
Business Angel
Mentor Group
well, it's more detailed. Plus, as far as I understand the details, having (even an existing) IBC after June 2021 with income above 37.5 means you have to pay tax in Belize or elsewhere. I'm a bit surprised, that there is not a broader discussion about this here.
seems to be the same just more details yes
 

user9823671

Building Trust
Entrepreneur
there is a crucial difference between the 'is' status and the 'planned' one. In the furure, you have to prove, that you pay taxes elsewhere, if you can not, you have to pay taxes in Belize - see page 160 here http://www.ibcbelize.com/wp-content/uploads/2019/01/IBCAmendment_24_of_2018.pdf
Just been reading about these 2019 changes and what you put is what I understand. Unless that is just for sure and proving is them asking you "do you pay taxes" you saying "yes" and they tick the box and things carry on.
 

800008

New Member
ANY UPDATE so far ? Does it mean Belize will not following BVI and Cayman's Economic Substance Requirements which asking IBC set up real operations onshore ?
 

JohnD

Active Member
unfortunately Belize also introduced the Economic Substance Act: The Economic Substance Act came into force on 11 October 2019. The purpose of the Economic Substance Act is to ensure that Belize does not facilitate the use of corporate structures which attract profits, but which do not reflect real economic activity that is being undertaken in Belize. More details, including a flow chart are here: Economic Substance Flowchart - For the attention of all the Commission’s Licensees: - International Financial Services Commission
 

JohnD

Active Member
did you had a look at the flow chart ?

From the flow chart I see following outcomes:
a) you provide a proof that the company is controlled and managed outside of Belize and is tax resident in a jurisdiction other than Belize
b) the activity of the company is directed and managed in Belize and there are adequate employees, expenditure and appropriate premises in Belize
c) the entity is not engaged in a relevant activity
d) Entity is subject to sanctions

I have no idea what is 'relevant activity', but in my understanding this means, you can no longer use it as a cheap shell - or at least not so easy and not so cheap
 

user9823671

Building Trust
Entrepreneur
Are you referring to LLC or IBC. I don't really understand but IIRC, to do business in Belize you need an LLC with substantive proof business is run / controlled / performed in country. For an ILC things are (pretty much) business as usual with some caveats
 

blueweb

Corporate Services
Business Angel
Mentor Group
Some people around here are going strict by the rules. I can't figure out if this is just to explain to the noobs what the official rules & terms are or if it is to expose how wise and knowledgeable they are!

One thing is sure if you setup the Belize company right then even in 2030 there will be no problem to get a Belize company setup remote and without troubles. The question is, why would you go with Belize at all after all the changes in the banking sector you already see and which you will see even more in the future!?!
 

Alex Fr

Member
According to that law any commercial entity on Belize (except tax resident in a jurisdiction other than Belize controlled and managed outside of Belize) has to report its own type of report:
(a)in the case of an included entity (entity prescribed to have ECONOMIC SUBSTANCE ) , Form B prescribed in the Schedule is to be completed by the included entity;
(b) in the case of an included entity that is a holding company , Form C prescribed in the Schedule is to be completed by the holding company;
(c) in the case of a non-included entity, Form D prescribed the Schedule is to be completed by the non-included entity

And what's happened with those reports after:
12.-( 1) The competent authority (Belize Financial Regulator) shall upon the receipt of a form filed by an included entity spontaneously exchange the same with the competent authority of a jurisdiction of the legal or beneficial owner of such included entity where there is any non-compliance with the substantial economic presence requirements of this Act by the included entity.
(2) The competent authority shall upon the receipt of a form filed by a non-included entity pursuant to section I 0(2)(c), spontaneously exchange the same with the appropriate authority of a jurisdiction of the legal or beneficial owner of such non-included entity and also to the appropriate authority of the jurisdiction of its claimed tax residence.

This sounds worse than CRS
 

Admin

Forum Moderator
Staff member
There is no one any longer that really want to setup a company in Belize. I know from back 10 years and more it was the best package one could buy. Belize company setup with darks and a Cyprus bank account - BANG - total freedom for less than 1000 euro!

That's over and it will never come again.
 

hernanday

Building Trust
Entrepreneur
unfortunately Belize also introduced the Economic Substance Act: The Economic Substance Act came into force on 11 October 2019. The purpose of the Economic Substance Act is to ensure that Belize does not facilitate the use of corporate structures which attract profits, but which do not reflect real economic activity that is being undertaken in Belize. More details, including a flow chart are here: Economic Substance Flowchart - For the attention of all the Commission’s Licensees: - International Financial Services Commission
Belize is over. Forget about it. They have rolled over for the EU and given them everything, anyone there, get out while you still can.
 
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