Fiscal System
The Government policy is aimed to boost foreign investments toward export productions which contain also technology and professional training.
Actually, imports and fiscal taxes represent 38% of the total incomes, while taxes on goods and services represent 30% of them. The most important budget items are education, health, national security and work.
In 2002-2003, the public budget was 371,9 million dollars as expenses and 404,7 million dollars of income.
One more important income item is determined by taxes on profits which represent 30% of the total reserves.
All the persons resident in Belize, who have an income less than US$10 thousand yearly, are exempted from payment of income taxes. On the contrary, people having a profit higher than 10 thousand US$ yearly must pay a tax of 25%.
Taxes on business change according to the sector of work, from a minimum of 0,75% for radio, television and newspapers, to a maximum of 15% for commission, copyright, dividends or lotto wins.
In the effort to diversify their economy, Belize promoted and developed a tax system in favour of non-resident people. The industry of financial services is an area of great possibilities, thanks to the fact that Belize has a well formed legislation. One point in favour of Belize is the fact that it is the only English speaking Country in Central America, it has a well trained working people at low costs, a stable economy,
flexible fiscal incentives and an exchange rate fixed for 25 years.
To-day more than 35.000 International Business Companies (IBC) are registered and moreover, there are other organizations as Limited Company, Investment Funds, protected Companies, Companies for financial investments, International Insurance Co., offshore Bank Services.
Furthermore, just to boost investments, Belize introduced programs as Export Processing Zone and the Commercial Free Zone.
Nevertheless the 11th September attack, Belize is the only Country of Central America to register a continuous and steady increase in the industry of International Financial Services.
The Country, just to oppose tax evasion and recycling of black money, adopted specific measures. The International Financial Services Commission (IFSC) is responsible of improvements and the Belizean best reputation as an Offshore Financial Services Centre. The Financial Intelligent Unit (FIU) has been established recently to improve the fight against recycling and against the financial support to terrorism. This unit is also responsible to investigate and to pursue financial crimes, as, for example, internet fraud.
GOVERNMENT INCENTIVES
The Government of Belize is offering many incentives to draw the attention of investors, i.e:
-100% of properties and social profits to the foreign investor;
- establishment of joint ventures with local companies;
- legal incentives to the retirement industry;
- flexible fiscal incentives and franchises.
- duty free zone and export duty free area.
- international financial services.
Belize presents many aspects which foster the development of private
local and foreign investments, as the following:
