Businesses operating in San Pedro and across Belize are being reminded of their obligation to comply with the tax regime governed by the Income and Business Tax Act. Authorities stress that full compliance is essential to avoid penalties and to ensure the uninterrupted operation of business activities nationwide.
All businesses, including self-employed individuals, partnerships, companies, and sole proprietorships, are required to file monthly business tax returns. These returns must detail all revenue received during the prior month and must include the corresponding tax payment. The standard business tax rate for most activities is 1.75%, but this can increase to 6% for professional services and up to 19% for specific sectors such as telecommunications. For personal income, Belize imposes a flat 25% tax on earnings exceeding BZD 26,000; income below this threshold is exempt.
Businesses must also obtain a Tax Identification Number (TIN) and register with the Belize Companies & Corporate Affairs Registry (BCCAR). Companies with annual receipts above certain thresholds, such as BZD 75,000 for trade businesses, may be required to submit audited financial statements. Monthly Business Tax Returns are due by the 15th day of the following month (e.g., January receipts must be filed and paid by February 15). For International Business Companies (IBCs), annual tax returns must be filed by March 31 each year, along with financial statements. However, for the 2025 tax year, the Belize Tax Service has extended the deadline for filing financial statement returns to December 31, 2025.
To enhance compliance, the Belize Tax Service Department periodically releases lists of businesses with outstanding tax balances. This public disclosure serves as a deterrent against non-compliance and encourages timely payment, helping to preserve the integrity of the tax system and ensure equitable contributions from all businesses.
In an interview with the media, Michelle Longsworth, Director General, Tax Service, stated, “Taxes, as you rightly know, fund critical services within our public service. So, it is unfair; it places an unfair burden on others who actually pay their taxes. So it’s important that everyone pays their taxes.” She explained that the recently published list includes individuals and businesses that have been repeatedly contacted, some of whom have even been taken to court, yet remain willfully non-compliant despite efforts to resolve matters amicably. This marks the first step in a series of enforcement actions under the Tax Administration and Procedure Act (TAPA). If public disclosure fails to prompt compliance, the department will move to more serious legal measures, including property liens, asset levies, and potential imprisonment. However, she stressed that such outcomes are not the goal.
Paying taxes is essential for funding public services, including healthcare, education, infrastructure, and social security. Tax revenues also support Belize’s participation in regional trade agreements and investment incentive programs, promoting national development and economic stability.
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