Belize corporate tax - guide for international expansion

Setting up a business in Belize? Understanding the corporate tax landscape is crucial for your company's success and compliance in this Central American nation.

This comprehensive guide covers everything you need to know about corporate taxation in Belize, from tax rates and payment procedures to compliance requirements and incentives.

Whether you're establishing a new venture or expanding your operations, having a clear grasp of your tax obligations will help ensure smooth business operations. Plus, we'll show you how Wise Business can streamline your international payments and help manage your finances efficiently across borders.

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This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Belize corporate tax rate in 2025

Belize operates a dual tax system governed by the Income and Business Tax Act (IBTA), which includes both income tax and business tax. The corporate income tax rate is 25% on chargeable income for resident companies.¹

Under the business tax regime, companies are taxed on their gross receipts rather than net profits. This system applies to both resident and non-resident entities that conduct business in Belize, while the specific rate depends on the nature of the activity as defined in the IBTA.²

Following the 2019 tax reform, International Business Companies (IBCs), now known as Belize Business Companies, are no longer automatically exempt from tax. Companies that earn only foreign-source income and have no physical presence or permanent establishment in Belize may still qualify for tax exemption, subject to compliance and reporting requirements introduced to align Belize with international transparency standards.³

Read more about Corporate Tax Planning best practices

How to pay corporate tax in Belize

Corporate and business tax returns in Belize are required to be filed annually, with IBCs (Belize Business Companies) generally needing to submit their business tax return by 31 March each year.³ Tax payments for IBCs can be made in Belize Dollars or U.S. dollars.

From the tax period ending 31 March 2023 onward, all taxpayers must file returns and make payments electronically using the IRIS Belize online portal. Physical filing or paper-based payments are no longer accepted.⁴

If a tax return is filed late, a penalty of 10% of the tax due per month (or part of a month) applies, with a minimum of BZD 10, for up to 24 months.³ And for late payment of taxes, interest is charged at 1.5% per month on the unpaid balance for each month it remains outstanding.³

Let's calculate the tax liability for a company with a turnover of BZ$3 million (equivalent to approximately £1.5 million). Assuming a profit margin of 10%, the taxable profit would be BZ$300,000.

At Belize's standard corporate tax rate of 25%, the tax owed would be:

BZ$300,000 × 25% = BZ$75,000

When expanding your business to Belize, the right financial tools will make the process smoother. Using a platform like Wise Business makes it easy to manage international finances. A multi-currency account allows businesses to pay for incorporation costs, registration fees, and government taxes in local currency without paying high exchange rate fees.

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Tax Compliance in Belize

Listed below are the steps to keep your company compliant with Belize tax and corporate law:

• File your Business Tax on time: All individuals, partnerships, corporations, consultants, and firms operating in Belize must pay Business Tax on total revenues or receipts. Returns, along with tax due, must be filed by the 15th day of the following month. For example, December receipts must be filed and paid by January 15.
• Avoid penalties and interest: Late corporate tax filing penalties are steep. Non-filing costs 10% of the tax due per month (minimum $10), up to 24 months. Late payment incurs 1.5% interest per month on unpaid balances until settlement.⁵
• Manage GST compliance: Businesses above the annual threshold must register for GST, charge it on sales, and remit monthly. You can claim credits for GST paid on your expenses, so making proper records is essential.
• Keep accurate accounting records: Under the Belize Accounting Records (Maintenance) Act, companies must keep records of assets, liabilities, sales, purchases, and transactions at their registered office or agent’s office. This ensures transparency and supports smooth audits.
• Understand other obligations: Belize’s corporate tax rules include a 25% flat income tax for both residents and non-residents, exemptions of up to $26,000 BZ, and a 12.5% VAT. There is no capital gains tax, but property and social security taxes apply.⁶ Consulting a corporate tax expert can help navigate these details and prevent compliance risks.

International Expansion to Belize

Belize has built a reputation as a competitive hub for international business. Its political stability, English-speaking population, and strategic location in Central America steal the attention of many entrepreneurs. The country sits at the crossroads of the Caribbean and Latin America, giving easy access to both regional and North American markets. Its proximity to the United States, combined with strong air and maritime routes, makes it a practical choice for U.S.-based firms seeking growth abroad.⁷

The business environment is further supported by Belize’s open foreign investment regime, which permits 100% foreign ownership in most sectors.⁷ Recent government initiatives, including the National Investment Policy and Strategy (NIPS) and the Micro, Small, and Medium Enterprise (MSME) Strategy, reflect efforts to strengthen the investment climate and improve financing options. Digitalisation projects, such as online land and business registries, make incorporation even faster.⁸

From a tax standpoint, Belize’s corporate tax policy holds significant benefits. Although domestic businesses are subject to taxation, foreign investors enjoy exemptions under the International Business Company (IBC) structure. IBCs benefit from full tax relief on dividends, capital gains, and other profits, providing both tax efficiency and corporate tax accounting flexibility.⁹ That said, businesses should consult a corporate tax specialist or seek corporate tax advisory services to remain compliant with evolving rules and prepare for any potential corporate tax increase in the future.

Note that the Belizean dollar (BZD) is pegged at 2:1 to the U.S. dollar, protecting it from currency volatility. It’s a rare advantage in region.⁹

Below are the steps to follow when starting a business in Belize:¹⁰

1. Conduct market research to understand demand and competition.
2. Develop a business plan outlining operations and financial projections.
3. Choose a business address and register your company with the Companies and Corporate Affairs Registry.
4. Protect intellectual property by registering trademarks and logos.
5. Arrange financing through local or international lenders.
6. Apply for a trade license from the Town Board or City Council.
7. Register for taxes and file corporate tax by obtaining a Tax Identification Number (TIN).
8. Open a corporate bank account to manage transactions.

Belize has this unique standing when it comes to the corporate climate. However, it’s worth examining the corporate tax policies, cultural sensitivities, and property prices in this region before you make the final call.

Discover the top 5 best Corporate Tax softwares

Incorporation of Business in Belize

To incorporate a business in Belize, you must register with the Belize Companies and Corporate Affairs Registry. The process starts with a name search on the Online Business Registration System (OBRS), where you can reserve a company name for up to ten days. Companies must use approved suffixes and avoid restricted words.

The incorporation package typically requires:¹¹

• Articles/By-laws of the company, setting out governance rules, shareholder rights, and management powers.
• Social Security ID and address details for all shareholders, directors, and members.
• Email and phone number for official communication.
• Nature of business, briefly describing planned activities.

Applicants must self-register in OBRS, submit documents, pay fees, and obtain a certificate of incorporation. Only a shareholder or guaranteed member may incorporate directly; foreign companies or those with overseas participants must appoint a licensed registered agent.

Business Entity Types in Belize¹²

• International Business Companies (IBCs): Popular with international investors, IBCs can be set up within days. They benefit from exemptions on income, capital gains, and dividends earned abroad. Under the Belize Companies Act 2022, IBCs now follow the same framework as domestic firms, making them versatile for global operations.
• Limited Liability Companies (LLCs): LLCs protect members from personal liability and allow pass-through taxation. They require no minimum capital and are exempt from Belize taxes if operating outside the country. Recent amendments provide fiscal transparency by treating LLCs as partnerships or disregarded entities for tax purposes.
• Partnerships: These are available as general partnerships (with unlimited liability) or limited partnerships (where at least one partner enjoys limited liability). These structures rely on clear legal agreements covering management and profit-sharing.
• Trusts: Used for estate planning and asset protection, Belize trusts are shielded from foreign court rulings under the Trusts Act. Offshore trusts must register with the Financial Services Commission (FSC).
• Branches: Foreign companies may open branches by proving overseas incorporation and appointing a local representative. Branches must maintain accounts and file annual balance sheets with regulators.

When selecting a structure, consider the Belize corporate tax rate and compliance obligations, such as the tax return deadlines. Businesses often work with a corporate tax associate to maximise available corporate tax credits and ensure filings meet local standards.

International corporate tax best practices

Managing corporate tax obligations across multiple jurisdictions requires strategic planning and adherence to international standards to ensure compliance and optimise tax efficiency.

Maintain comprehensive documentation and ensure timely compliance with all local filing requirements. This includes keeping detailed records of all business transactions, maintaining proper books of accounts, and ensuring that all tax returns are filed within prescribed deadlines to avoid penalties and interest charges.

Understand and leverage double taxation agreements where available. Belize has limited double taxation treaties, but businesses should explore available agreements to prevent being taxed twice on the same income. Companies should also stay informed about international tax developments, including OECD initiatives and regional tax harmonisation efforts.

Consider the benefits of Belize's International Business Company structure for qualifying international operations, while ensuring full compliance with substance requirements and beneficial ownership reporting obligations. Regular review of tax positions and seeking professional advice can help identify opportunities for legitimate tax optimisation while maintaining full compliance with both Belizean and international tax obligations.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Belize efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.

• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.

• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.

• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.

• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

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FAQs - Corporate tax in Belize

Who is liable for corporate tax in Belize?

All companies incorporated in Belize are liable for corporate income tax on their chargeable income. Resident companies are taxed on worldwide income, while non-resident companies are only taxed on Belize-source income. International Business Companies (IBCs) may be exempt from tax on foreign-source income under specific conditions.

Are there any tax incentives for businesses in Belize?

Yes, Belize offers extensive tax incentives through various programmes administered by Beltraide. These include the Export Processing Zone (EPZ) programme, tourism incentives, and manufacturing incentives that can provide tax holidays ranging from 10 to 25 years. Qualifying businesses may receive a complete exemption from corporate income tax, import duties, and other taxes.

What is the tax treatment of dividends in Belize?

Dividends paid by Belize companies to residents are generally subject to withholding tax at rates that vary depending on the recipient and applicable tax treaties. However, dividends paid by IBCs to non-residents are typically exempt from withholding tax, making this structure attractive for international investors.

What is the process for registering for corporate tax in Belize?

Companies must register with the Income Tax Department within 30 days of commencing business operations in Belize. The registration process requires submission of incorporation documents, details of business activities, and appointment of a local representative if the company is non-resident. Companies must also obtain a Tax Identification Number (TIN) for all tax-related transactions.

What are the common pitfalls to avoid regarding corporate tax in Belize?

Common mistakes include failing to register for tax within the required timeframe, not maintaining adequate books and records, missing quarterly provisional tax payment deadlines, and incorrectly claiming IBC exemptions without meeting substance requirements. Companies should also ensure they understand the distinction between domestic and international business activities, as this affects tax liability and available exemptions.

Sources used in this article:

1. Offshore Company Corp: What is the Belize Income and Business Tax Act (IBTA)
2. Belize Government: Income and Business Tax Act (CAP. 55) (PDF)
3. BBC Incorp: Belize Business Tax Overview
4. Belize.org: All Taxpayers Required to File Tax Returns and Pay Taxes Online (PDF)
5. Belize Tax Service (BTS): Business Income Tax Guide (PDF)
6. Biz Latin Hub: Business Accounting and Taxation Requirements in Belize
7. U.S. Trade.gov: Belize Market Opportunities
8. U.S. Department of State: 2023 Investment Climate Statements - Belize
9. Biz Latin Hub: 7 Good Reasons for Doing Business in Belize
10. Belize Hub: Starting a Business in Belize
11. BCCAR: Company Incorporation Services
12. Biz Latin Hub: Belize Corporate Entity Options

Sources last checked 06/10/2025