Tax and Accounting Regulations
A coherent offshore tax planning strategy is essential to maximize the effectiveness of offshore companies. Eltoma can assist by structuring the most tax efficient strategy to satisfy your requirements. Eltoma will guide you as to which jurisdictions offer the best tax structure by identifying the types of tax payable as well as applicable exemptions and incentives. Eltoma will provide tax planning advice that will identify which is the most favourable, tax efficient jurisdiction in which to incorporate.
The tax system of a Belize Offshore Company is relatively simple and straightforward. Essentially a Belize IBC is a completely tax free offshore company as long as it complies with the regulations set out in Article 5 of the Belize IBC Act. These include regulations such as not carrying out business with persons resident in Belize, not owning any real estate, not undertaking banking or insurance services and not providing registered office facilities for other IBC’s. All are easy requirements to fulfill.
Belize has steadily developed its offshore laws and has emerged as one of the most credible and safe offshore jurisdictions. It’s legal infrastructure has been designed to ensure the highest degree of privacy and asset protection.
Below is an overview of the tax and accounting regulations in Belize
Corporation Tax – According to the 1990 IBC Act Belize IBC’s are exempt from paying corporation tax
The following are all tax exempt:
- All dividends paid by the Belize IBC to a non-resident
- All interest, rent, royalties, compensations and other amounts paid to a non-resident of Belize
- All capital gains in respect to; shares, debt obligations or other securities of a company incorporated under the Belize IBC Act by persons who are non-resident
- No stamp duty on transactions
Government License Fee:
- A government license fee must be paid by all Belize IBC’s in order to operate. The annual cost is approximately USD $100.
International Aspects of Taxation:
Belize has agreed to sign a Legal Assistance Treaty with the US. It will share any information if it protects against money laundering and in order to combat international terrorism and the drug trade. Belize carries out due diligence through the KYC Process.
Double Taxation Treaty – Belize has a Double Taxation Treaty with the UK, Sweden, Denmark and the countries of the Caribbean Community (CARICOM)
Annual Reporting Requirements:
- No records or accounts are required to be submitted to the authorities.
- If the directors and shareholders wish to maintain these they may be held anywhere in the world.
CJEU: Defines Key Definitions for Tax & Beneficial Ownership Purposes
Last month, the Court of Justice of the European Union (CJEU) issued a series of important judgments dealing with tax avoidance and beneficial ownership in the context of the EU Parent-Subsidiary Directive (PSD) and the Interest and Royalties Directive (IRD).