Thursday, January 8, 2009

INCOME AND BUSINESS TAX AMMENDMENT FOR BELIZE: JANUARY 1, 2009


THE NATIONAL ASSEMBLY


The House of Representatives in Belmopan, Belize has approved in its second and third readings a number of amendments to the Income and Business Tax Amendment Bill. The Bill was ratified by the Senate and signed into law by the Governor General Sir Colville Young. On January 1, 2009 this Act came into effect; it will affect Real Estate transactions, Banking, Casinos and the Telecommunications sectors.
According to the government, the amended bill will:

•Increase the tax for financial institution which falls within a “PIC Group” (public investment companies) as defined in the International Business Company Act, the rate shall be 12% from 8%

•Increase the rate of business tax on companies providing telecommunication services to 24.5% from 19%.

•Gross earnings of casinos or licensed gaming premises or premises with more than 50 machines at 15%.

•Retain the rate of business tax for all non-commission earning categories of the real estate industry at 15%

•Gross earnings from real estate business as follows:

a)Real estate brokers and agents, earning commissions 15%
b)Real estate sales, developers, condominium owners and fractional interest 2.5%
c)Long Term Leases 3%
d)Time Share Operators 4%

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