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GST and Excise Tax Revision in Belize’s New Budget

Mar 26, 2018

Belize’s 2018 budget brought significant changes for indirect tax system. These revisions are mostly directed at complying with the global taxation standards, therefore, concerning Goods and services tax (GST) and Excise tax.

GST will change for internet data purchase. From now on, 12,5 % tax will be collected from everyone, apart from schools, who purchase internet data. This adjustment is due to the revenue lowering from the telecommunications sector.

In addition, the exemptions from GST will be amended too. Contracts, where the Government of Belize is a party, will be subjected to GST. It is considered that land clearing, crop dusting, and harvesting, are categories abusing tax exemption. Consequently, they will be subjected to GST from 2018.

Furthermore, GST will be modified for companies in business processing-outsourcing sector and operating expenses will become ineligible for classification as inputs. Moving on to the Excise tax alteration, kerosene and jet fuel imports will be taxed evenly - equivalent to fuel oils and diesel. This transition is aimed at preventing mislabeling for companies that want to avoid taxation.

One of the amendments is regarding the free zone fees. Social fee for goods imported to duty-free zone, will apply for the goods imported to Belize's Philip S.W. Goldson International Airport. For goods imported into Belize’s economic zones will raise from 2 to 3%.

The regime changes are implemented according to the OECD compliance requirements, and also to minimize abuse, tax evasion and any other negative factors for Belize’s Government.International Business Companies will enjoy preferential low-tax regime until October 2018. The other transitions will be implemented soon, as Belize will amend its tax regime according to the international compliance requirements and other government plans. Offshorelicense Ltd will keep you informed on any alterations relevant to offshore businessmen.

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