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

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rockrock

New member
depends on if you are selling to anyone locally in Belize or if you set this up 100% offshore!
Let's consider both scenarios if you do not mind.

Let me guess.

If you sell to anyone locally in Belize (which can strictly never be totally prevented even if trying a customer might circumvent this) then I guess it's a Belize tax resident? But to what extend? On the part sold in Belize? Or the company's worldwide income? Really a Belize tax resident just because having Belize customers? Consider the following.

I was also hearing from multiple sources that if an USA 1 person LLC by a non-resident (no greencard, no substantial presence test positive, no USA citizenship) is a disregarded entity for tax purposes for foreign source income. USA source income however needs to be taxed. But then also simply having USA customers and no PE does not result in fulfilling the legal definition of USA source income. (Confirm this by yourself if you are after this, dear reader. This is just for comparison.)

If only selling to non-Belize then not tax resident in Belize and thereby effectively no tax resident anywhere?
 

uplana

Corporate Services
Mentor Group Gold
May I ask what the problem is to pay the 1,75% ? actually you can benefit from paying taxes in Belize!
 

rockrock

New member
I am learning. It might actually make sense.


Learned a deal breaker for my current situation.


But Belize is still interesting for future businesses.

Right. However, I need to consider it all. The full package. Personal tax residency, corporate tax residency, CFC, bank accounts, documents...

They'd tax the foreign company and on incoming arising in my country. Basically, they don't care and for that I am eternally grateful. They would not even tax the foreign company if I wanted to. So from perspective of my country, the Belize company isn't tax corporate tax resident in my country.
But from perspective of Belize, where would the Belize company be tax resident?
I got confused by the rules mismatch. This guy explained it to me:


Just because the Belize company is non-resident in Belize doesn't automatically mean it's resident elsewhere. Just need to follow each country's law.

"(2) This Act shall not apply to a commercial entity that is controlled and managed outside of Belize and is tax resident in a jurisdiction other than Belize."

"Controlled and manager outside of Belize" Yes

"tax resident in a jurisdiction other than Belize" No

Therefore the ESR act applies. Going back to Belize introduce corporate tax of 1,75% to please the banks. I am excluded.

Would I be able to pay the 1,75% even though the company would be non-resident in Belize? I guess so. Not only be able. But must. That's how this discussion started. Please correct me if I am wrong.

Am I am excused to be confused by all of this complicated rules? :) What I mean to say, I am really thankful for all of this forum!
 
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