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Belize tax

Belize tax matter | Country -by- country reporting

Belize tax | For the attention of all the companies, including International Business Companies (IBC). 

On January 24th, 2020, Belize introduced Country-by-Country Reporting by way of the Mutual Administrative Assistance in Belize Tax Matters (Amendment) Act, 2020 (“the 2020 Amendment Act”) and also enacted accompanying Mutual Administrative Assistance in Belize Tax Matters (Automatic Exchange of Country-by-Country Reports) Regulations, 2020 (“the Regulations”) facilitating the Automatic Exchange of Country-By-Country Reports. 

As a result of this, Multinational Enterprises (MNE) with consolidated group revenue of US$850 million or more (or its equivalent in any other currency) that have an ultimate parent entity resident in Belize must file a report within twelve months after its tax year ending December 2019 and for every subsequent reporting, within twelve months of the end of the financial year with the Belize Tax Services (BTS). 

Belize tax matter | Country -by- country reporting

This report must outline the following information about the Multinational Enterprises Group | Belize Tax: 

  • Revenue, profit, loss before income tax, income tax paid, income tax accrued, share capital, accumulated earnings, number of employees, and tangible assets other than cash or cash equivalents for each jurisdiction in which the MNE Group operates. 

  • Information identifying each constituent entity of the MNE Group, setting out the group members’ tax residence and location of incorporation. 

The Regulations also require constituent entities resident in Belize that are not ultimate parent entities to disclose to the Belize Tax Services (BTS) which entity is the reporting entity and the tax residence of that entity. 

Companies must and should review the 2020 Amendment Act and Regulations to determine if they fall within the scope of the framework and ensure compliance with the Country-by-Country Reporting Standard. 

Companies that meet the requirements to file the Country-by-Country Report can access the portal via the link: https://aeoiportal.itx.gov.bz/ 

At OMC Group we stand by ready to assist you. Should you have further inquiries on Country-by-Country Reporting in Belize Tax Management.

Useful Information

Belize is located on the northeastern coast of Central America, southeast of Mexico, and encompasses the world’s second-largest barrier reef along the coast for 386 kilometers, also including a surprising number of lagoons. 

It has an approximate population of 419,199. 

The country achieved independence in 1981 and remains an active member of the British Commonwealth of Nations.

Belize is a Parliamentary Constitutional Monarchy type of democracy and is considered very politically stable.

Legislation is based on English Common law.

English is the official language, but Spanish is also spoken.

The local currency is the Belize dollar which is tied to the US dollar at a fixed exchange rate of BZ$2.00 = US$1.00.

There are no exchange controls on IBCs as they are treated as non-residents for exchange control purposes.

The Government of Belize is committed to sustaining the growth and development of the international financial services sector.

Highlights of Belize international business companies

  • The creation status and business of IBCs are governed by the International Business Companies Act, of 1990 (as amended in 2019) which is based on the already successful British Virgin Islands model.

  • A Belize IBC has many advantages, starting from the incorporation process which is simple and expeditious.

  • Language requirements are flexible; Chinese characters are allowed and both Chinese and English names must be recorded in the Registry.

  • The Articles of Association can be adapted to the needs of the company. 

  • Also, IBCs may migrate into and out of Belize depending on the company’s planning needs. Incorporation can be completed within two days, although a further five working days are required for the release of the documentation from the registry.

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