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.

Take the next step, we are here to help.

Register a Belize company.
Open a Belize bank account.

  Resources:

Have the Many Benefits of Offshore Banking Left the Industry Open to Abuse?

Have the Many Benefits of Offshore Banking Left the Industry Open to Abuse?

The overseas banking industry is a billion-dollar business. Its no surprise that during the last decade, criminals have discovered ways to circumvent and exploit the system, ultimately giving the offshore world a bad reputation. This article looks at the many benefits associated with overseas banking; and how this has left the industry open to abuse.

An Overview of Offshore Banking & its Benefits

An Overview of Offshore Banking & its Benefits

Generally speaking, overseas or offshore banking has garnered a bad reputation in the financial world. Usually the term is synonymously used with embezzlement, money laundering and tax evasion; evoking reminiscent scandals such as the Panama Papers.

Crypto-currency Start-ups Buying False Reviews is Destablising Reputable Investment Sources

Crypto-currency Start-ups Buying False Reviews is Destablising Reputable Investment Sources

When cryptocurrency issuers want reviews for their coins, reports have surfaced that several prominent companies have been found offering money to advertisers in exchange for positive appraisals.

Is the Era of Shell Companies Coming to an End?

Is the Era of Shell Companies Coming to an End?

The Honourable Dr. Orlando Smith, Premier and Minister of Finance has announced that the BVI Government will take all reasonable steps to address European Union concerns about economic substance and a new Legislation is intended to be in force by the end of December 2018 in order to avoid the European Union Black List of Tax Heaven Jurisdictions.

Regulatory Update: BVI Economic Substance Act 2018

Regulatory Update: BVI Economic Substance Act 2018

In 2016, the Council of the EU pledged to start advocating tax transparency and fairer taxation within Europe and consequently worldwide. After the EUs Code of Conduct Group (COCG) on taxation investigated BVI practices, they found a number of concerns regarding legitimate substance requirements for companies and limited partnerships doing business in and through BVI.

Information on the Payment of Cyprus Taxes for Pensions & Rental Income

Information on the Payment of Cyprus Taxes for Pensions & Rental Income

Cyprus employees who are considered to have tax resident status, pay tax on their global income. Employees not considered to be tax resident are only charged for specific types of income that are originating from Cyprus-based sources.

Cyprus Regulatory Update: Shell Company Definition & Exceptions

Cyprus Regulatory Update: Shell Company Definition & Exceptions

The Central Bank of Cyprus has released new guidance for all credit institutions on the island, refining the definition for shell companies and subsidiary entities; coming into effect from November 2018, which are detailed as follows:

Singapore Variable Capital Company VCC: New Features & Benefits

Singapore Variable Capital Company VCC: New Features & Benefits

The introduction of the VCC is a significant positive for the Singapore funds industry. Its aim is to retain Singapore as an attractive business destination and to keep investors wishing to domicile locally.