Taxes in Belize

Business Tax

Businesses, companies, and self-employed persons with annual earnings exceeding BZ$75,000 are required to pay business tax. The rate is determined by classification.

Income Tax

Income tax is levied at a rate of 25% on the taxable income of employed residents in Belize whose annual earnings exceed BZ$26,000 (US$13,000). Individuals earning less than this amount are exempt from income tax. The basic allowance is BZ$25,600 (US$12,800). This tax, known as PAYE, applies exclusively to employee income and is not considered a cost to be borne by the employer or business.

General Sales Tax (GST)

Belize's General Sales Tax (GST) is a 12.5% consumer tax on goods and services. Some basic goods and services are zero-rated or exempt. GST is calculated on the markup value and paid monthly to the Department of GST. Only registered persons can charge GST (output tax) and claim credits (input tax). Businesses with annual turnover exceeding $75,000 (US$37,500) from taxable activities must register for GST with the Department of GST.

Hotel Tax

Businesses operating in the hotel industry are also required to levy an additional hotel tax of 9%. The tax is charged to the hotel guests and paid monthly to the Belize Tourism Board (BTB).

Environmental Tax

An Environmental Tax of 3% is levied on the CIF (Cost, Insurance, and Freight) value of goods imported into Belize. Exemptions from this tax include certain medicines and medicinal supplies for human use, along with specified basic foodstuffs, including rice, beans, potatoes, coffee, tea, butter and butter substitutes, cheese, margarine, cooking oil, shortening, lard and lard substitutes, powdered milk, condensed milk, baby formula, sardines, salted or in brine pork, corned beef, and salt. Also exempt are goods made available through funds provided by grant agreements with external donor agencies, funds borrowed from external financial institutions by the Government of Belize, or through a government guarantee. This tax is payable by the importer at the time of importation.

Social Security Contributions

Social Security provides benefits to employed individuals in cases of sickness, maternity, injury, or disability. Payments are due monthly to the Belize Social Security Board. Employers must ensure all employees have valid social security cards before hiring.

Land Tax

This tax is collected by the Department of Lands and is assessed at a rate of 1% of the unimproved value of the lands.

Stamp Duty / Transfer

Stamp duty, also known as transfer tax, is payable on all transactions involving taxable land. For Belizean and CARICOM nationals, the duty is 5% of the land value exceeding $20,000. For all other persons, the rate is 8% of the land value.

Property Tax

Property tax is levied and controlled by City Councils and Town Boards throughout each district. Within the City of Belmopan, the rate of property tax is set at 2% of the assessed value. The Belize City Council utilizes the rate of 2.5% of the assessed value.

Excise Tax

Excise tax is collected on locally manufactured goods such as alcohol, beer, cigarettes, and soft drinks. It is also levied on certain classifications of imported vehicles.

Import Duty & Revenue Replacement Duty (RRD)

The Belize Customs Tariff is modelled from the Harmonized Description and Coding System (HS). The rates are based on the Customs Value (Cost, Insurance, Freight – CIF).

Import duties are levied at the point of importation. The importer is liable for these duties. The Belize Customs & Excise Department is responsible for their collection. Rates range from 0 to 45%, with most commodities attracting a rate of 20%.

Some imported items are subject to a Revenue Replacement Duty (RRD) ranging from 5% to 40% of the combined Customs Value and Import Duties. For a complete list of affected commodities, visit the Belize Customs & Excise Department's website.

Under the CARICOM agreement, goods imported into Belize from a CARICOM member state are exempt from import duties. Importers seeking this exemption must provide a CARICOM Certificate of Origin to the Comptroller of Customs. The complexities of the import process, including documentation requirements like the Certificate of Origin, often require importers to engage customs brokerage services.