Belize Income and Business Tax Amendment Bill makes progress

A number of amendments to the Income and Business Tax Amendment Bill have been approved by the House of Representatives in Belize. These amendments will affect the way of taxation imposed on Belize’s banking, real estate and telecommunications sectors.

According to the government, the amended bill will increase the tax for public investment companies in the banking sector to 12% from 8%. It will also raise the rate of business tax on companies in the telecommunications sector to 24.5% from 19%.

The government said that the new legislation will retain the rate of business tax for all non-commission earning categories of the real estate industry at 15%. It is also important that it will fix the “real” business tax rate for commission earning real estate businesses, including condominium owners, long time lease timeshare operators, real estate developers, and share transfer sales at 1.75%. Initially, the government had proposed to set this tax at 2.5%.

The Income and Business Tax Amendment Bill was approved in both its 2nd and 3rd readings in the House. So, it must be ratified by the Senate before it will be able to be signed into law by the Governor General.

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