Belize

Read the article “Changes on Belize International Business Companies Act”

Country

Belize is an ex British Crown Colony that has gained its independence in 1981. Belize has been enjoying a stable political situation with a parliamentary democracy while being a member of the Commonwealth of Nations. The head of the state is Queen Elizabeth II who is represented by a Belizean national and the law that is being followed is the one of the UK

The currency used is the Belize Dollar (BZ$) and the official language is English although most of the inhabitants do not use it at home while Spanish is widely spoken as well.

Taxation

Belize is a tax heaven jurisdiction having 0% corporate tax. All dividends paid by the offshore company are being tax exempt as well as dividends received, income tax, and capital gain tax.

Uses of Companies

Personal Investment Funds

Offshore companies are mainly used as “wallet”, meaning personal investment funds. Within a tax structure, it will be the final stage of the asset ownership and in this way it will be used to finance the rest of the projects and business activities of the group.

As a Trade Agent

It is commonly used for international trade but its use is more and more restricted these days as most of the countries worldwide do not recognize the invoices issued by offshore companies as expense or they change withholding tax upon their payment. So in the context of international tax planning it is important to use the offshore company as a trade agent with companies in jurisdictions that recognize offshore invoices such as Cyprus and UK.