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Belize tax guide 2026

Belize tax for companies: the IBC exemption ended, here's what replaced it

Updated 10 November 2026After the 2019 to 2022 reformsAbout 10 minutes to read
The short answer

A Belize company pays business tax on its receipts worldwide: 1.75% on trading, 6% on professional services. The old IBC tax exemption ended in 2019.

It's exempt only if it is tax resident in another country off the EU list, with no Belize base, confirmed by that country's tax office.

Belize or my country? Work out business tax
Reformed 2019 the year Belize IBCs stopped being tax exempt Today business tax falls on worldwide receipts, unless the company is tax resident in another country.

Belize used to be a zero tax IBC jurisdiction, and many pages still say so. That ended in 2019. Today a Belize company pays business tax on its receipts worldwide, unless it proves it's tax resident somewhere else. Here's the current system, from the Income and Business Tax Act and the regulator's guidance.

Key takeaways

  • New IBCs lost their tax exemption from January 2019; the IBC Act was repealed in 2022.
  • Business tax is charged on receipts, not profit: 1.75% for trading, 6% for professional services, up to 15%.
  • A company is exempt only if it's tax resident in a country off the EU list, with no Belize base, and files a claim.
  • The regulator wants a letter from that country's tax office showing tax assessed or paid.
  • Belize withholds 15% on dividends; how that meets exempt companies is unsettled.
  • Belize left the EU grey list on 9 October 2026.
Chapter 1

Belize IBC tax: what the 2019 reform ended

US$120,000 consulting receipts2026
Business tax at 6%US$7,200
With the exemption acceptedUS$0
Old IBC exemptionEnded 2019
Proof neededForeign tax letter
Where your company is resident decides it. Where you live: pick it
  1. Before 2019IBCs exemptInternational business companies paid no Belize tax on anything.
  2. 1 January 2019Exemption closed for new IBCsCompanies formed from then on are taxed like any other.
  3. 1 January 2020Business tax on worldwide receiptsThe Income and Business Tax Act reaches receipts from anywhere.
  4. 30 June 2021Old IBCs lose it tooThe grandfathered IBCs formed before October 2017 joined the system.
  5. 28 November 2022IBC Act repealedEvery company now sits under the Belize Companies Act 2022.
1
Key takeaway

Old pages still say IBCs are exempt. The law changed in 2019.

Chapter 2

Belize business tax: a tax on receipts

Belize business tax is a percentage of what comes in, not of profit. Type yearly receipts and pick the activity.

US$
Mostly from

The rates come from the Income and Business Tax Act, revised edition 2020. Income tax at 25% is credited with business tax, so in practice business tax is the bill.

2
Key takeaway

A tax on receipts, not profit, from 1.75% to 15%.

Chapter 3

Belize foreign income exemption: the trade-off

The exemption needs the company to be tax resident in another country off the EU list, with no office, staff, management or resident owner in Belize, a Belize tax number, a yearly claim, and a letter from that country's tax office, as the regulator's 2023 guidelines set out.

That last part is the trade-off most pages skip: the exemption works because another country taxes the company, usually the one you run it from. Compare the two bills.

US$
%
%

The comparison uses Belize business tax at the professional services rate of 6% of receipts. The other country's tax is a simple rate on profit; its own rules and reliefs will differ.

3
Key takeaway

The exemption works because another country taxes the company.

Chapter 4

Belize company tax filing and fees

  1. By 31 MarchTax return with financial statementsForm BTS 290. Late: 10% a month for up to 24 months, plus 1.5% interest a month.
  2. With the claimExemption certificateUS$60 plus BZD 100 in fees, and a Belize tax number. Banks ask for the same proof: Belize company bank account.
  3. By 30 JuneAnnual return to the registryWith the yearly government fee, under the Companies Act. Every date and penalty: Belize annual fees and filings.

4
Key takeaway

Tax return by 31 March, annual return by 30 June.

Chapter 5

Belize withholding tax on payments abroad

15%On dividends, in the Act; how it meets exempt companies is unsettled
15%On interest to non-residents
25%On management fees to non-residents
12.5%GST, once taxable supplies in Belize pass BZD 75,000
5
Key takeaway

15% on dividends and interest in the Act; check before paying out.

Chapter 6

Is Belize a tax haven?

Not any more, in the sense the label used to mean. Belize taxes receipts worldwide, left the EU grey list on 9 October 2026, and the OECD rated its transparency largely compliant in April 2026, as the regulator announced. Its zero tax days are the reason old pages still call it one.

6
Key takeaway

Off the EU grey list since 9 October 2026.

Chapter 7

Belize tax questions, answered

?!
Is a Belize IBC still tax free?
No. New IBCs lost the exemption in 2019, the old ones in 2021, and the IBC Act was repealed in 2022. Companies can only be exempt as tax residents of another country.
What is the business tax rate in Belize?
A percentage of receipts: 1.75% for trading, 3% for rents and royalties, 5% for foreign dividends and interest, 6% for professional services and 15% for commissions.
What is the corporate income tax rate in Belize?
25%, but business tax is credited against it, so most companies pay business tax only. Petroleum companies pay 40%.
How does a Belize company get the foreign income exemption?
By being tax resident in a country off the EU list, with no Belize base or management and no Belize-resident owner, shown by a letter from that tax office and a yearly claim.
When is the Belize tax return due?
By 31 March, with financial statements, on form BTS 290, as the regulator's notice on IBC returns reminds companies.
Is Belize on the EU tax list?
Not since 9 October 2026, when it left Annex II.
Do you file the exemption claim?
Yes. Our Belize company includes the yearly exemption claim and substance report.

Changelog

  • 10 November 2026: first published.
  • 13 November 2026: official sources linked in the text.
Your Belize company

A Belize company with the exemption claim filed for you.

US$740 a year with the annual return fee inside, plus the certificate fees at cost when you claim.

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