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Income and Business Tax Act, Chapter 55 (amended in 2003)

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BELIZE
INCOME AND BUSINESS TAX ACT
CHAPTER 55
REVISED EDITION 2003
SHOWING THE SUBSTANTIVE LAW AS AT 31ST MAY, 2003.
This is a revised edition of the Substantive Laws, prepared by the Law Revision
Commissioner under the authority of the Law Revision Act, Chapter 3 of the
Substantive Laws of Belize, Revised Edition 2000.
This edition contains a consolidation of the following laws – Page
ARRANGEMENT OF SECTIONS 3
INCOME AND BUSINESS TAX ACT10
Amendments in force as at 31 st May, 2003.

BELIZE
INCOME AND BUSINESS TAX ACT
CHAPTER 55
REVISED EDITION 2003
SHOWING THE SUBSTANTIVE LAWS AS AT 31ST MAY, 2003.
This is a revised edition of the Substantive Laws, prepared by the Law Revision
Commissioner under the authority of the Law Revision Act, Chapter 3 of the
Substantive Laws of Belize, Revised Edition 2000.
This edition contains a consolidation of the following laws – Page
ARRANGEMENT OF SECTIONS 3
INCOME AND BUSINESS TAX ACT10
Amendments in force as at 31 st May, 2003.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
Printed by the Government Printer,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Income and Business Tax[CAP. 55
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CHAPTER 55
INCOME AND BUSINESS TAX
ARRANGEMENT OF SECTIONS
PA RT I
Pr eliminar y
1. Short title.
2. Interpretation.
Administration
3. Appointment of Commissioner, etc.
4. Official secrecy.
Imposition of Income T ax
5. Charge of Income Tax.
6. Basis of Assessment.
7. Special periods of assessment.
Exemptions
8. Exemptions.
9. Business of shipping by non-resident.
10. Government loans.
Ascer tainment of Char geable Income
11. Deductions allowed.
12. Allowance for wear and tear (Fifth Schedule).
13. Deduction not to be allowed.

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14. Export allowance.
15. Allowance of trade losses.
16. Reduction in case of resident in Belize.
17. Deduction for certain gifts.
18. Special provision as to certain companies and business.
19. Wife’s income.
20. Rates of taxes upon persons other than companies.
21. Flat rate of tax on company.
22. Deduction of tax from dividends of companies.
23. Temporary residents.
Trustees, Agents, etc.
24. Chargeability of trustees, etc.
25. Chargeability of agent of person residing in Belize.
26. Acts, etc., to be done by trustees, etc.
27. Statement to be prepared by trustees, etc.
28. Manager of corporate bodies of persons.
29. Indemnification of representative.
30. Deceased persons.
General Powers of Commissioner
31. Returns.
32. Accounts and records.
33. Audit and ancillary powers.
34. Official information and official secrecy.
35. Partnerships.
36. Signature of notices.
37. Service of notices.
Assessments
38. Commissioner to make assessments.

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39. Additional assessments.
40. Record of persons assessed and notices of assessments.
41. Appointment of agent in the United Kingdom.
42. Power of Commissioner to revise assessment and of Board to
entertain objections to assessments.
43. Appeals against assessments.
44. Errors, etc. in assessments and notices.
45. Evidence.
Relief in Cases of Double T axation
46. Relief in respect of United Kingdom Income Tax.
47. Relief in respect of Commonwealth Income Tax.
48. Time for making claim.
49. Official secrecy.
50. Double taxation arrangements.
51. Tax credits.
52. Double taxation relief applicable to dividends.
Collection and Repayment of T ax
53. Extracts from assessment lists to be sent to collector.
54. Time within which payment is to be made.
55. Penalty for non-payment of tax, and enforcement of payment.
56. Collection of tax after determination of objection or appeal.
57. Debt to the Crown.
58. Garnishment of Debts.
59. Recovery of tax in certain cases.
60. Exit Certificate.
61. Repayment of Tax.
Pr oceedings for Recover y of Income T ax
62. Notice to be given to tax defaulters.

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63. Collector to issue warrant against goods for recovery of taxes.
64. Suspension execution and institution of proceedings before
Magistrates.
Judgment Debtor Pr ocess
65. Magistrate may order payment of tax, etc., into court.
66. Imprisonment for failure to obey order.
67. Debtor paying whole of amount ordered to be paid.
Pr oceedings by way of Distr ess
68. Form and scope of warrant (First Schedule).
69. Sales on goods levied on and disposal of proceeds.
70. Bailiff ’s fees.
Execution Against Lands or Houses
71. Failing to recover on goods the Collector to sell realty of Defaulter
(Second Schedule).
72. Form of praecipe for sale of lands by Revenue Officer (Third
Schedule).
73. On abortive sale of realty and continued default in payment property
to vest in Crown.
74. Conditions of sale.
75. Effect of execution of sale with regard to title.
76. Form of conveyance (Fourth Schedule).
77. Disposal of surplus proceeds of sale.
Claims by Thir d Par ties
78. Affidavit by a person not the defaulter, claiming the property levied
upon.
79. Discontinuance of levy upon bond being given by claimant, etc.

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80. Abandonment of levy or setting cause down for trial.
81. Issue at trial.
82. Procedure to be same as in ordinary cases.
83. Exemption from stamp duties.
84. Onus probandi.
85. Prosecution to commence within six years.
General
86. Penalties for offences.
87. Penalty.
88. False statement and returns.
89. Saving for criminal proceedings.
90. Impeding or obstructing Commissioner or officers.
91. Transfer of property to evade taxation.
92. Procedure and evidence.
93. Use of agents to detect crime.
94. Rules.
95. Minister may remit tax.
Collection of T ax W ithholding
96. Failure to deduct and remit.
97. Assessment for failure to deduct or remit.
PA RT I I
Income Tax on Profits Arising from
Petroleum Operations
9 8 . Definitions.
99. Separate accounts for pertroleum operations.
100.Assessment of chargeable income.
101. Valuation of petroleum.

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102. Tax Accounting Principles carry forward of losses; keeping of ac-
counts; arms length transactions; deductions allowed in ascertainment
of chargeable tax.
103.Application of Part I to Petroleum Profits.
PART III
Business Tax
104.Part III to override other provisions.
105.Interpretation.
106.Imposition of business tax.
107.Rates of tax.
108.Exemptions from tax.
109.Duty to make returns and pay tax.
110. Commissioner to make assessments.
111. Additional assessments.
112. Witholding tax on gross contract payments.
113. Collection of tax on winnings from lottery, tax on interest on time
deposits, dividends or management fees, etc.
114. Refund of excess tax.
115. Carry forward of losses.
116. Penalty for evasion.
117. Liability of purchaser of business or entity to pay arrears of tax.
118. General penalty.
119. Regulations.
120. Transitional provisions.
_____________
SCHEDULES
_____________
FIRST SCHEDULE – Warrant to levy
____________

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SECOND SCHEDULE – Praecipe to levy by sale of lands or houses
_____________
THIRD SCHEDULE – Notice to defaulter
____________
FOURTH SCHEDULE – Form of conveyance
____________
FIFTH SCHEDULE – Allowance for wear and tear
____________
SIXTH SCHEDULE – Petroleum tax capital allowances
_____________
SEVENTH SCHEDULE – Method of calculating export allowance
EIGHTH SCHEDULE
NINTH SCHEDULE

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CHAPTER 55
INCOME AND BUSINESS TAX
[12th December, 1923] PA RT I
Pr eliminar y
1. This Act may be cited as the Income and Business Tax Act.
2. In this Act, unless the context otherwise requires –
Ch. 38,
R.L., 1958.
CAP. 46,
R.E. 1980-1990.
16 of 1958.
11 of 1963.
40 of 1963.
11 of 1964.
4 of 1967.
19 of 1970.
3 of 1971.
9 of 1972.
12 of 1975.
23 of 1975.
6 of 1976.
7 of 1978.
10 of 1980
7 of 1982
3 of 1984.
6 of 1984.
20 of 1984.
6 of 1985.
2 of 1986.
4 of 1986.
22 of 1987.
27 of 1987.
32 of 1987.
3 of 1988.
28 of 1988.
4 of 1989.
9 of 1991.
3 of 1992.
16 of 1994.
8 of 1997.
19 of 1998.
7 of 1999.
3 of 2001.
S.I. 7 of 1964.
Interpretation.Short title.
19 of 1998.

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“basis year” means the calendar year coinciding with the year of assessment
except where another period is substituted by the Commissioner under section
7;
“Board” means the Income Tax Appeal Board appointed under section 3(3);
“body of persons” means any body politic, corporate or collegiate and any
company, fraternity, fellowship, partnership, or society of persons whether cor-
porate or not corporate;
“business tax” means the tax levied under Part III of this Act;
“chargeable income” means –
(i) in the case of an employed person, the aggregate amount of the
income from the applicable sources specified in section 5 re-
maining after allowing the appropriate deductions and exemp-
tions under this Act, but does not include “receipts” as defined
in Part III of this Act;
(ii) i n the case of any person other than an employed person, the
aggregate amount of the income from the applicable sources
specified in section 5 remaining after allowing the appropriate
deductions and exemptions under this Act;
“Chief Collector” means the Chief Income Tax Collector appointed under sec-
tion 3 (1), and until such time as such appointment is made, the Commissioner
of Income Tax;
“child” includes a stepchild, an adopted child, or a child born out of wedlock
who is wholly maintained by the parent claiming the allowance, but does not
include a child who is married or has been married or is cohabiting in a com-
mon law union;
8 of 1997.
16 of 1994.7 of 1999. 19 of 1998.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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“Commissioner” means the Commissioner of Income Tax appointed under
section 3 (1);
“company” means any company incorporated or registered under any law in
force in Belize, and any company which, though incorporated or registered
outside Belize, carries on business, or has an office or place of business therein;
“incapacitated person” means any infant, person of unsound mind, or insane
person;
“judge” means a judge of the Supreme Court;
“lottery” means any scheme for distributing prizes by lot or chance but does
not include raffles where the value of the article raffled is not more than ten
dollars;
“Minister” means the Minister responsible for Finance;
“person” means a natural person or a legal person and includes a firm, a branch
and any body of persons, whether corporate or unincorporate;
“prescribed” means prescribed by rules made under this Act;
“petroleum” means all natural organic substances composed of carbon and
hydrogen; and includes crude oil and natural gas, and all other mineral sub-
stances, products, by-products and derivatives that are found in conjunction
with petroleum;
“petroleum operations” means the operations related to the exploration, de-
velopment, extraction, production, field separation, transportation, storage,
sale or disposal of petroleum, but does not include any transportation or other
operations:
19 of 1998.16 of 1994.
9 of 1991.

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Income and Business Tax[CAP. 55
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(i) beyond the point of export; or
(ii) i n the case of petroleum which is processed within Belize, be-
yond the point of entry into a refinery or liquefaction or natural
gas treatment plant;
“petroleum profits” means the profits arising from petroleum operations;
“tax” means the income tax imposed by this Act and includes surtax, unless
otherwise specified;
“trade” includes every trade, manufacture, adventure or concern in the nature
of trade;
“year of assessment” means a period of twelve months commencing on 15th
January in each year.
Administration
3.-(1) For the due administration of this Act, the Governor-General shall
appoint a Commissioner of Income Tax, and the Public Services Commission
may appoint a Chief Income Tax Collector and such other officers and collec-
tors as may be necessary to determine, collect, receive and account for the
income tax.
(2) The said Commissioner shall prepare an assessment record and he
shall generally carry out the provisions and exercise the powers delegated to or
vested in him under this Act.
(3) There shall be appointed by the Minister after consultation with the
Public Services Commission an Income Tax Appeal Board to hear and deter-
mine, pursuant to this Act, objections against assessments made in accordance
with this Act.
(4) The Board shall consist of three persons who shall be either persons
holding public office, other than an office constituted under subsection (1), or
Appointment of
Commissioners,
etc.
11 of 1964.
Duties of
Commissioner.
Appointment
and functions of
the Income Tax
Appeal Board.

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persons who have held office in the Public Service.
(5) The Board so appointed may act by any two of its number and by that
number shall form a quorum.
(6) It shall not be necessary or compulsory, unless otherwise considered
expedient, to make a temporary appointment to the Board during the absence
on leave of any one member of the Board.
(7) Any reference in any other Act or in any statutory instrument to the
Assessor of Income Tax or to the Commissioners of Income Tax, other than a
reference to such Commissioners in relation to their functions of hearing and
determining objections made against assessments, shall be read and construed
as a reference to the Commissioner and any reference in any such Act or
statutory instrument to the Commissioners of Income Tax in relation to their
functions of hearing and determining objections against assessments shall be
read and construed as a reference to the Board.
(8) Wherever by this Act or any other Act or statutory instrument relating to
income tax a discretion is conferred on the Commissioner, that discretion may
be exercised on an objection made against an assessment by the Board, and,
on an appeal under section 44, by a judge.
4.-(1) Every person having any official duty or being employed in the admin-
istration of this Act shall regard and deal with all documents, information, re-
turns, assessment lists and copies of such lists relating to the income or items
of the income of any person, as secret and confidential, and shall make and
subscribe a declaration in the form prescribed to that effect before a justice of
the peace.
(2) Every person having possession of or control over any documents,
information, returns or assessment lists or copies of such lists relating to the
income or items of income of any person, who at any time communicates or
attempts to communicate such information or anything contained in such docu-
ments, returns, lists, or copies to any person –
Official secrecy.

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Income and Business Tax[CAP. 55
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(a)other than a person to whom he is authorised by the Minister to
communicate it; or
(b)otherwise than for the purpose of this Act,
is guilty of an offence.
Imposition of Income T ax
5.-(1) Income tax shall, subject to this Act, be payable at the rate or rates
specified hereafter in sections 21 and 22 for the year of assessment commenc-
ing on 15
th January, 1999 and for each subsequent year of assessment upon the
chargeable income of any person accruing in or derived from Belize, whether
received in Belize or not in respect of:
(a)in the case of a person other than an employed person, the gains or
profits from any trade, business, profession or vocation, for what-
ever period of time such trade, business, profession or vocation
may have been carried on or exercised;
(b)in the case of an employed person, gains or profits from any em-
ployment, including the estimated annual value of any quarters or
board or residence or of any other allowance granted in respect of
employment whether in money or otherwise, but not including-
(i) payment for any passage to or from Belize for
the purpose of leave granted in respect of the
employment, up to a maximum of one month’s
basic salary; or
(ii)any allowance granted for the purchase of uni-
form or the value of any uniform supplied by the
employer;
Charge of
income tax.
7 of 1999.
3 of 2001.40 of 1963.
16 of 1994.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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(c)any pension, charge or annuity.
(2) Repealed by Act 3 of 2001.
(3) The gains and profits from any employment exercised in the country
shall be deemed to be derived from the country whether the gains or profits
from such employment are received in the country or not.
(4) Where a loan is made to a director or a shareholder or to a relative of
a shareholder of a company, the amount thereof shall be included in comput-
ing the income of the person to whom the loan was made unless –
(i) the loan was made in the ordinary course of the lender’s busi-
ness and the lending of money was part of its ordinary busi-
ness; or
(ii)bona fide arrangements were made at the time the loan was
made for the repayment thereof within a reasonable time;
(iii)the loan was repaid within one year from the end of the taxa-
tion year of the lender in which it was made and it is estab-
lished, by subsequent events or otherwise, that the repayment
was not made as a part of a series of loans and repayments.
For the purpose of this section –
“relative”, in relation to an individual, means the husband, wife, brother or
sister or any lineal ascendant or descendant of that individual.
6. Tax shall be charged, levied and collected for each year of assessment
upon the chargeable income of any person for the basis year.
11 of 1964.
2 of 1986.
Basis of
assessment.

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7.-(1) Where the Commissioner is satisfied that any person other than an
employed person usually makes up the accounts of his or its trade or business
on some day other than the last day of a basis year the Commissioner shall
permit the gains or profits of that trade or business to be computed for the
purposes of this Act upon the income of the year terminating on that day in the
basis year on which the accounts of the said trade or business have been
usually made up.
(2) In no case where the Commissioner has permitted the gains and profits
of any trade or business to be computed on any date mentioned in subsection
(1) shall any change be subsequently made without prior notice in writing to the
Commissioner and subject to such adjustment of income tax as the Commis-
sioner may determine.
Exemptions
8.-(1) There shall be exempt from tax-
(a)all the official emoluments received by the Of-
ficer Administering the Government during the
period in which he is administering the govern-
ment;
(b)all the emoluments drawn by the Governor-Gen-
eral himself while on leave;
(c)the income of any local authority in so far as such
income is not derived from a trade or business
carried on by the local authority;
(d)the income of any statutory or registered build-
ing or friendly society;
(e)the income of any ecclesiastical, charitable or
Exemptions.
11 of 1964. 12 of 1975.
7 of 1999.Special periods
of assessments.

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educational institution of a public character in
so far as such income is not derived from a trade
or business carried on by such institution;
(f)the emoluments payable to members of the per-
manent consular services of foreign countries in
respect of their offices or in respect of services
rendered by them in their official capacity;
(g)the emoluments payable from Imperial Funds
to members of Her Majesty’s Forces and to
persons in the permanent service of the Impe-
rial Government in Belize in respect of their of-
fices under the Imperial Government;
(h)wound and disability pensions granted to mem-
bers of Her Majesty’s Forces;
(i)gratuities granted to members of Her Majesty’s
Forces in respect of services rendered during
the Great War;
(j)the income of the Government Savings Bank;
(k)the income of any institution for the encourage-
ment of thrift which the Minister may declare to
be exempt;
(l)the income arising from a scholarship, exhibi-
tion, bursary or any other similar educational
endowment held by a person receiving full time
instruction at a university, college, school or
other educational establishment;
40 of 1963.

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(m)any interest paid on savings where the invest-
ment does not constitute the ordinary business
of the company or the self-employed person:
(n) interest payable by –
(i) the Government on monies bor-
rowed by it from, or debts owed
by it to, sources outside Belize;
(ii)any financial institution or banking
company to which the Banks and
Financial Institutions applies, on
monies borrowed by such financial
institution or banking company
under a loan agreement approved
by the Government where the
monies are borrowed for the
purpose of advancing any loan to
the Government;
(iii)any person in Belize, on monies
borrowed under a loan agreement
entered into with any such interna-
tional or regional financial institu-
tion in a foreign country as may be
approved in this behalf by the
Government by general or special
order;
(iv)any person on capital used in
specified development industries or
projects;
27 of 1987.
CAP. 263 7 of 1999.

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(o)any inducement, education or other allowance
and any gratuity attributable thereto paid or pay-
able to an officer by or on behalf of the Gov-
ernment of the United Kingdom under the Over-
seas Service (British Honduras) Agreement
1961, or under any memorandum or agreement
amending, extending or replacing that agree-
ment;
(p)payment received out of the Social Security
Fund established under the Social Security
Act in respect of sickness benefit, maternity
allowance, child’s pension and child’s death
benefits;
(q)any pension paid by the Government of Belize
or by any other person resident in Belize in
respect of the past services of an individual or
of the husband, wife, parent or other relative
of that individual, or given to that individual in
respect of the past services of any other
deceased person, whether or not such indi-
vidual, husband, wife, parent, relative or
deceased person had contributed towards
such pension;
(r)any pension or annuity paid by any person or
authority outside Belize to a retired person
who is ordinarily resident in Belize and when
such pension or annuity is received in Belize;
(s)payments received under any social security
scheme or fund, whether made by a person
resident in Belize or abroad, provided that 12 of 1975.
CAP. 28.
7 of 1982.
CAP. 44.
32 of 1987.
8 of 1997.
32 of 1987.

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Income and Business Tax[CAP. 55
[] 21
such payments are proved to the satisfaction of
the Commissioner to be social security pay-
ments;
(t)gratuities paid by the Government of Belize, or
by a public statutory body, to its employees
(whether contract or non-contract employees)
in respect of past services.
(u)dividends of up to one thousand dollars paid to
a shareholder in any basis year by a company
which is engaged in development industries or
projects;
(v)winnings from –
(i) ‘Boledo lottery’, ‘Jackpot lottery’ or
‘Ordinary lottery’ as those terms are
defined in the Lotteries Control
Regulations, 1966;
(ii)any lottery where the winning is less than
one thousand five hundred dollars;
(w)interest from any debentures, treasury bills,
treasury notes or bonds issued by or under the
authority of the Government of Belize.
(2) Nothing in this section shall be construed to exempt in the hands of
the recipients any dividends, interest, bonuses, salaries or wages paid wholly
or in part out of the income so exempted.
(3) For the purposes of this section, “public statutory body” means the
Development Finance Corporation, Belize Electricity Board, Water and
4 of 1989.
3 of 1992.
16 of 1994.
16 of 1994. Sub. Leg.,
Vol. III
CAP. 151. p.2.
4 of 1989.

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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
[] 22
Sewerage Authority, Port Authority, Airports Authority, Marketing Board,
Central Bank of Belize, Reconstruction and Development Corporation and
Social Security Board:
Provided that the Minister may, by Order published in the Gazette,
include any other statutory body within the meaning of “public statutory body”
for the purposes of this section.
9.-(1) Gains or profits arising from the business of shipping carried on by a
person not resident in Belize shall be exempted from tax provided that the
Minister is satisfied that an equivalent exemption from income tax is granted
by the country in which the person is resident to persons resident in Belize
and, if that country is a country other than the United Kingdom, to persons
resident in the United Kingdom.
(2) In this section the expression “business of shipping” means the
business carried on by an owner of ships who employs them in the carriage of
passengers or freight, or both, or in the landing, shipping or warehousing of
goods, and for the purposes of this definition the expression “owner” includes
any charterer.
(3) For the purposes of this section a company shall be deemed to
be resident in that country only in which the central management and control of
its business is situate.
10. The Governor-General may by proclamation published in the Gazette
provide that the interest payable on any loan charged on the public revenue of
Belize shall be exempted from tax, either generally or only in respect of
interest payable to persons not resident in Belize, and such interest shall as
from the date and to the extent specified in the proclamation be exempted
accordingly.
Business of
shipping by non-
resident.
40 of 1963.
Government loans.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Income and Business Tax[CAP. 55
[] 23
Ascer tainment of Char geable Income
11.-(1) For the purpose of ascertaining the chargeable income of any person
other than an employed person, there shall be deducted all bona fide expenses
wholly and exclusively incurred during the basis year by such person other than
an employed person in the production of the income, including-
(a)any sums paid by such person as-
(i) interest upon any money borrowed by him, where
the Commissioner is satisfied that the interest was pay-
able on capital employed in acquiring the income; or
(ii)interest upon any money borrowed by him for the
acquisition of shares in a company carrying on busi-
ness in Belize;
(b)rent paid by any tenant of land or buildings occupied by him for
the purpose of acquiring the income; or
(c)where any person engaged in any trade, business, profession
or vocation has expended any sum in replacing any plant or
machinery which was used or employed in such trade,
business, profession or vocation, and which has become ob-
solete, an amount equivalent to the cost of the machinery re-
placed, after deducting from that such sum as shall represent
the total depreciation which has occurred by reason of ex-
haustion by wear and tear since the date of purchase of the
plant machinery and any sum realised by the sale thereof;
(d)any sum expended to the satisfaction of the Commissioner on
re-afforestation of any timber land with a view to making good
any depletion caused by the felling of timber thereon;
Deductions
allowed.
7 of 1982.
7 of 1999.
10 of 1980.
11 of 1964.3 of 1992.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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(e)any sum expended for repair of premises, plant and machin-
ery employed in acquiring the income, or for the renewal, re-
pair or alternation of any implement, utensil or article so em-
ployed;
(f)bad debts incurred in any trade, business, profession or vo-
cation proved to the satisfaction of the Commissioner to have
become bad during the basis year, and doubtful debts to the
extent that they are respectively estimated to the satisfaction
of the Commissioner to have become bad during the said
year notwithstanding that such bad or doubtful debts were
due and payable prior to the commencement of the said year;
however, all sums recovered during the basis year on ac-
count of amounts previously written off or allowed in respect
of bad or doubtful debts shall for the purposes of this Act be
treated as receipts of the trade, business, profession or voca-
tion for that year;
(g)in the case of a non-resident, so much of the expenditure in
the nature of head office expenditure, as is not in excess of
two and a half per cent of its gross receipts;
(h)any sum expended-
(i) in establishing or developing an industry approved by
the Minister as being to the benefit of Belize; or
(ii)for a purpose approved by the Minister as being for
the welfare of the public or a particular section thereof;
(i)such other deductions as may be prescribed by any rule made
under this Act.
11 of 1964.
2 of 1986.
2 of 1986.
40 of 1963.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Belmopan, by the authority of
the Government of Belize.
Income and Business Tax[CAP. 55
[] 25
(2) The Minister may by rules provide for the method of calculating or
estimating the deductions allowed or prescribed under this section.
(3) For the purposes of paragraph (h) the Minister may make rules
regarding the industries, class of industries or purposes for which, and the con-
ditions under which, such deductions may be allowed.
12.-(1) In ascertaining the chargeable income of any person engaged in a
trade, business, profession or vocation, there shall be allowed as a deduction a
reasonable amount for exhaustion by wear and tear of any industrial building,
any qualifying hotel building, and any plant and machinery owned by him arising
out of the use or employment of such industrial building or qualifying hotel building
or of such plant or machinery for the purpose of his trade, business, profession
or vocation during the basis year, in the manner and, as regards industrial build-
ings or qualifying hotel buildings, at the appropriate rate set out in the Fifth
Schedule.
(2) “Qualifying hotel” has the meaning assigned to it in paragraph 2 of the
Fifth Schedule.
13. For the purpose of ascertaining the chargeable income of any person no
deduction shall be allowed in respect of –
(a)domestic or private expenses;
(b)any disbursements or expenses not being money wholly and
exclusively laid out or expended for the purpose of acquiring
the income upon which income tax is payable;
(c)any capital withdrawn or any sum employed or intended to be
employed as capital;
(d)any capital employed in improvements, alterations or additions
except as provided in paragraphs (d) and (h) of section 11(1);
Allowance for
wear and tear.
11 of 1964.
32 of 1987.
Deductions not
to be allowed. Fifth Schedule.
Fifth Schedule. 40 of 1963

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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[] 26
(e)any sum recoverable under an insurance or contract of in-
demnity;
(f)rent of or cost of repairs to any premises or part of premises
not paid or incurred for the purpose of producing the income;
(g)any amount paid or payable in respect of the United Kingdom
income tax or surtax or Commonwealth income tax as
defined by this Act.
14.-(1) Subject to subsection (5), where in any basis year a company has
made export sales to a country other than a Member State, the amount of
income tax chargeable in respect of its income shall be reduced by an amount
of an export allowance calculated in the manner specified in the Seventh
Schedule, if the company satisfies the Commissioner that the provisions of this
section are applicable to it.
(2) All exports of products of an industry other than the products declared
by Order published in the Gazette to be traditionally export oriented products
shall be eligible for export allowance.
(3) An export allowance under subsection (2) shall be made only to the
company manufacturing or producing the product of an industry.
(4) An export allowance shall be made if the export profits amount to ten
per centum or more of the entire profits of the company.
(5) No export allowance under this section shall be made in the case of a
company which is declared to be an approved enterprise for the purpose of
the Fiscal Incentives Act in respect of the period during which that company is
enjoying benefits under that Act.
(6) For the purposes of this section –
Export allowance.
32 of 1987.
Seventh Schedule. 11 of 1964.
CAP. 54.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Income and Business Tax[CAP. 55
[] 27
“Member State” has the same meaning as in section 2 of the Fiscal
Incentives Act;
“company” means a company registered in Belize;
“industry” has the same meaning as in section 2 of the Fiscal
Incentives Act.
15.-(1) Subject to subsection (2) and (3), where the amount of a loss incurred
in the basis year in any trade, business, profession or vocation carried on by
any person either solely or in partnership is such that it cannot be wholly set off
against his income from other sources for the same year, the amount of the loss
shall, to the extent to which it is not allowed against his income from other
sources for the same year, be carried forward and shall, subject as provided in
subsections (2) and (3), be set off against what would otherwise have been his
chargeable income for the following year and the next four succeeding years
thereafter, or for so long as the trade, profession or vocation is carried on by
the person who incurred the loss, whichever is the shorter, save and except that
where the Commissioner is satisfied that an enterprise in the agricultural sector
has sustained operating losses, he may extend the carry forward period for a
further period not exceeding two years:
Provided that if the interest paid by any person on any money
borrowed by him for the acquisition of shares in a company carrying on busi-
ness in Belize is greater in any basis year than the dividend paid on those shares,
the difference may be set off against other income of that person in that year
and the succeeding years until such time as it is absorbed or the capital invest-
ment in those shares is recovered, whichever is earlier.
Provided further that, where a trade, profession or vocation carried on
by a person shows, on an average, a loss on operation during the preceding
five years; or in the agricultural sector during the preceding ten years, the
Commissioner may deem the trade or business a non-commercial venture and
disallow the set-off of any such loss against income from other sources.
Allowance of
trade losses.
11 of 1964.CAP. 54.
3 of 1992. 16 of 1994.CAP. 54.
16 0f 1994.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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(2) The amount of any loss allowed to be set off in computing the
chargeable income of any year shall not be set off in computing the chargeable
income of any other year, and where the loss involves the bankruptcy of a
person, or his compounding with his creditors, he shall not be entitled to set off
such loss against the profits of succeeding years.
(3) In the case of a company there shall not be any set off allowed of
the amount of a loss incurred in any preceding basis year in any case where –
(a)between the end of that preceding year and the end of
the basis year:
(i) more than fifty per cent of the shares carrying
voting power in the company have been ac-
quired by a person or persons who did not at
the end of that preceding year own any of the
shares in the company; or
(ii)control of the company was acquired by a per-
son or persons who did not at the end of that
preceding year control the company; and
(b)the company was not during the basis year carrying on
the business in which the loss was sustained.
16.-(1) In ascertaining the chargeable income of an employed individual who
is resident in Belize there shall be allowed a basic deduction of nineteen thou-
sand six hundred dollars.
(2) Any employed individual who is resident in Belize and whose total
income in a basis year from all sources is less than twenty thousand dollars
shall not be chargeable to tax in that year.
(3) A deduction of $100.00 as a tax credit shall be allowed from the
Deduction in case
of residents in
Belize.
19 of 1998.
16 of 1994. 11 of 1964.
16 of 1994.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Income and Business Tax[CAP. 55
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total tax payable of all residents.
(4) Where the Commissioner is satisfied in any particular case arising
during the three basis years commencing from 1
st January, 1995 that the basic
deduction allowed under this section is less than what would have been re-
ceived in respect of such claims had this section not been passed, then the
Commissioner shall allow an additional deduction to the extent that the basic
deduction falls short of the value of claims allowable in accordance with previ-
ous provisions.
(5) For the purpose of determining the eligibility for deduction under
this section, all income, whether exempt from tax or not, shall be included as
gross income.
(6) For the purpose of this section, a person shall be deemed to be
resident during a basis year if he spent in the aggregate more than one
hundred and eighty-two days within the country in that basis year or was
domiciled in Belize.
17.-(1) Subject to subsection (2), in ascertaining the chargeable income of a
person who proves to the satisfaction of the Commissioner that during the
basis year he has made several absolute and immediate gifts aggregating two
hundred and fifty dollars or over or one or more absolute and immediate gift
or gifts of the value of two hundred and fifty dollars or over, taking effect in
Belize, for ecclesiastical, charitable, educational, or cultural purposes or for
the improvement of amenities in towns or villages, there shall be allowed a
deduction of the amount of such gifts.
(2) No deduction under this section shall be allowed in any year of
assessment in respect of any such gifts beyond an amount equal to one-sixth
part of the chargeable income of such person estimated in accordance with the
provisions of this Act before making the deductions specified in this section and
in section 16.
Deduction for
certain gifts. 16 of 1994.
16 of 1994.
11 of 1964.
3 of 1971.
16 of 1994. 16 of 1994.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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(3) Where the amount of any such gifts in the basis year is such that it
cannot be wholly deducted in the year of assessment, the amount of such gifts
shall, to the extent to which it is not deducted, be carried forward and shall,
subject to the same limitation hereinbefore imposed, be deducted from what
would otherwise have been the chargeable income for the next five years in
succession.
(4) Notwithstanding the provisions of subsections (1) and (2) of this
section but subject to subsection (3) above, there shall be allowed a deduc-
tion of up to four hundred dollars for every child, not being a child living with
the individual at any time during the basis year under the age of sixteen years
and wholly maintained by him during the basis year, for any school fees or
books or any contribution to education, provided that the total deduction un-
der this subsection shall not exceed one thousand six hundred dollars.
18. Notwithstanding anything to the contrary in this Act, it is hereby provided
that-
(a)in the case of an insurance company, other than a life
insurance company, where the gains or profits accrue in
part outside Belize, the gains or profits on which tax is
payable shall be ascertained by taking the gross premi-
ums and interest and other income received or receiv-
able in Belize, less any premiums returned to the in-
sured and premiums paid on re-insurances, and deduct-
ing from the balance so arrived at a reserve for unex-
pired risks at the percentage adopted by the company
in relation to its operations as a whole for such risks at
the end of the basis year, and adding thereto a reserve
similarly calculated for unexpired risks outstanding at
the commencement of the basis year, and from the net
amount so arrived at deducting the actual losses less the
amount recovered in respect thereof under re-
insurance, the agency expenses in Belize and a fair pro-
Special provisions
as to certain
companies and
businesses.3 of 1992. 16 of 1994.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Income and Business Tax[CAP. 55
[] 31
portion of the expenses of the head office of the com-
pany;
(b)in the case of a life insurance company, whether mutual
or proprietary, the gains or profits on which tax is pay-
able shall be the investment income less the management
expenses, including commission, but where such a com-
pany received premiums outside Belize, the gains or profits
shall be the same proportion of the total investment in-
come of the company as the premiums received in Belize
bore to the total premiums received after deducting from
the amount so arrived at the agency expenses in Belize
and a fair proportion of the expenses of the head office
of the company.
19.-(1) The income of a married woman living with her husband shall, for the
purposes of this Act, be deemed to be the income of the husband, and shall be
charged in the name of the husband and not in her name nor in that of her
trustee, however, that part of the total amount of tax charged upon the husband
which bears the same proportion to that total amount as the amount of the total
income of the husband and wife may, if necessary, be collected from the wife,
notwithstanding that no assessment has been made upon her.
(2) Notwithstanding subsection (1), amounts may be withheld on account
of tax from the emoluments earned by married women during the basis year.
(3)(a)Notwithstanding the provisions of subsection (1) above,
the income of a married woman living with her husband
shall be assessed and charged to tax as if she were unmar-
ried if she and her husband so jointly elect in writing given
to the Commissioner, and every election so made shall
remain in effect until revoked by both parties in like
manner.
Wife’s income.
19 of 1970.
Submission of
separate returns
by husband and
wife.
3 of 1992.

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(b)The deduction under subsection (1)(a)(ii) and (1) (b)(ii)
of section 11 shall, where the wife is separately assessed
under this section, be allowed to the husband unless the
spouses in their joint election state the extent of their
apportionment to which any deduction thereunder shall
be made in ascertaining the chargeable income of each
spouse, so however that in no case shall the deduction
allowed between the husband and wife exceed the
deduction allowable had the assessment been made un-
der subsection (1) hereof.
(c)No deduction shall be allowed to a husband in any basis
year in respect of his wife if assessments are made in
accordance with paragraph (a) of this subsection.
(d)Any election under this section that could have been made
within any period jointly with a spouse who has died may,
within that period, be made jointly with the deceased’s
personal representatives.
20.-(1) Commencing from the first day of the basis year 1999 and for each
subsequent basis year, the tax on the chargeable income of every employed
person shall be charged at the rate of twenty-five per centum of the charge-
able income.
(2) On gross interest income from time deposits, there shall be charged a
tax of 5%, which shall be a final tax.
(3) On gross winnings from lottery or other similar activity, there shall be
charged a tax at the rate of 15% of such winnings, which shall be a final tax.
(4) The tax specified in subsections (2) and (3) above shall be collected
at source.
Rates of taxes
upon persons
other than
companies.
7 of 1999. 4 of 1989.
16 of 1994.
16 of 1994.
16 of 1994.

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Income and Business Tax[CAP. 55
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21.-(1) Commencing from the first day of the basis year 1999 and for each
subsequent year, the tax upon the chargeable income of any person other than
an employed person shall be charged at the rate of twenty-five per centum of
the amount of the chargeable income.
(2) The business tax paid by any person other than an employed person
under Part III of this Act during the basis year shall count as a credit towards
the income tax payable on such chargeable income.
(3) The excess of any business tax paid by any person other than an em-
ployed person during the basis year over the income tax due on the chargeable
income of such person shall be carried forward as an expense to the next basis
year.
(4) Where the income tax payable by any person during the basis year is
more than the business tax paid by such person during the same basis year, the
excess of income tax so payable shall be remitted by the Commissioner pro-
vided that income tax returns are duly filed by such person within such time as
may be specified by the Commissioner.
22.-(1) Every company shall upon payment of a dividend, whether tax is
deducted therefrom or not, furnish such shareholder with a certificate setting
out the amount of the dividend paid to that shareholder and the amount of tax
which the company has deducted or is entitled to deduct in respect of that
dividend and also, where the tax paid or payable by the company is affected by
double taxation relief, the rate, hereinafter in this Act referred to as “the net
colonial rate”, of the tax paid or payable by the company after taking double
taxation relief.
(2) In this section the expression “double taxation relief” means any credit
for foreign income tax which is allowable against income tax chargeable under
this Act by virtue of arrangements having effect under section 50, and any relief
allowable under section 46 or section 47, including any credit or relief which
has been taken into account in determining the net colonial rate applicable to
Deduction of tax
from dividends.
19 of 1998. Taxes from 1999
basis year.
7 of 1999.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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any dividends received by the company.
23. Tax shall not be payable in respect of any income arising out of Belize
which accrues to any person who is in Belize for some temporary purpose
only and not with any intent to establish his residence therein and who has not
actually resided in Belize at one or more times for a period equal in the whole
to six months in the basis year.
Trustees, Agents, Etc.
24. A receiver appointed by the court, trustee, guardian, curator or commit-
tee, having the direction, control, or management of any property or concern
on behalf of any incapacitated person, shall be chargeable to tax in like man-
ner and to the like amount as such person would be chargeable if he were not
an incapacitated person.
25.-(1) A person not resident in Belize, in this section referred to as a non-
resident person, shall be assessable and chargeable in the name of his trustee,
guardian, or committee, or of any attorney, factor, agent, receiver, branch, or
manager, whether such attorney factor, agent, receiver, branch, or manager
has the receipt of the income or not, in like manner and to the like amount as
such non-resident person would be assessed and charged if he were resident
in Belize and in the actual receipt of such income.
(2) In the case of any individual who is not resident in Belize, section 16
shall not apply.
(3) A non-resident person shall be assessable and chargeable in re-
spect of any income arising, whether directly or indirectly, through or from any
attorneyship, factorship, agency, receivership, branch, or management, and
shall be so assessable and chargeable in the name of the attorney, factor, agent,
receiver, branch, or manager.
(4) Where a non-resident person carries on business with a resident
Temporary
residents.
Chargeability of
trustees, etc.
Chargeability of
agent of person
residing out of
Belize.
3 of 1971.
12 of 1975.
6 of 1976.
11 of 1964.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Income and Business Tax[CAP. 55
[] 35
person, and it appears to the Commissioner that owing to the close connec-
tion between the resident person and the non-resident person the course of
business between those persons can be so arranged and is so arranged, that
the business done by the resident person in pursuance of his connection with
the non-resident person produces to the resident person either no profits or
less than the ordinary profits which might be expected to arise from that
business, the non-resident person shall be assessable and chargeable to tax in
the name of the resident person as if the resident person were an agent of the
non-resident person.
(5) Where it appears to the Commissioner that the true amount of the
gains or profits of any non-resident person chargeable with tax in the name of
a resident person cannot in any case be readily ascertained, the Commis-
sioner may, if he thinks fit, assess and charge the non-resident person on a
fair and reasonable percentage of the turnover of the business done by the
non-resident person through or with the resident person in whose name he is
chargeable as stated in subsection (4), and in such case the provisions of this
Act relating to the delivery of returns or particulars by persons acting on
behalf of others shall extend so as to require returns or particulars to be
furnished by the resident person of the business so done by the non-resident
person through or with the resident person, in the same manner as returns or
particulars are to be delivered by persons acting for incapacitated or non-
resident persons of income to be charged.
(6) For the purposes of subsection (5), the amount of the percentage shall
in each case be determined, having regard to the nature of the business, and
shall, when determined by the Commissioner, be subject to review, objection
and appeal as provided by this Act.
(7) Nothing in this section shall render a non-resident person chargeable
in the name of a broker or general commission agent or other agent where such
broker, general commission agent or other agent is not an authorised person
carrying on the regular agency of the non-resident person, or a person charge-
able as if he were an agent in pursuance of subsections (4) and (5) in respect of
11 of 1964.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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gains or profits arising from sales or transactions carried out through such a
broker or agent.
(8) The fact that a non-resident person executes sales or carries out
transactions with other non-residents in circumstances which would make him
chargeable in pursuance of subsections (4) and (5) in the name of a resident
person shall not of itself make him chargeable in respect of gains or profits
arising from those sales or transactions.
(9) Where a non-resident person is chargeable to tax in the name of any
attorney, factor, agent, receiver, branch or manager, in respect of any gains or
profits arising from the sale of goods or produce manufactured or produced
out of the country by the non-resident person, the person in whose name the
non-resident person is so chargeable may, if he thinks fit, apply to the Com-
missioner or, in the case of an objection, to the Board, to have the assessment
to tax in respect of those gains or profits made or amended on the basis of the
profits which might reasonably be expected to have been earned by a mer-
chant or, where the goods are retailed by or on behalf of the manufacturer or
producer, by a retailer of the goods sold who has bought from the manufac-
turer or producer direct, and on proof to the satisfaction of the Commissioner
or the Board, as the case may be, of the amount of the profits on the basis
aforesaid, the assessment shall be made or amended accordingly without preju-
dice to any right of appeal conferred by section 43.
26. The person who is chargeable in respect of an incapacitated person, or
in whose name a non-resident is chargeable, shall be answerable for all
matters required to be done by virtue of this Act for the assessment of the
income of any person for whom he acts and for paying the tax chargeable
thereon.
27. Any person who in whatever capacity is in receipt of any money or value
being income arising from any of the sources mentioned in this Act, or belong-
ing to any other person who is chargeable in respect thereof, or who would be
so chargeable if he were resident in Belize and not an incapacitated person
11 of 1964.
Acts, etc., to be
done by trustees,
etc.
Statement to
be prepared by
trustees, etc.
11 of 1964.

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[] 37
shall, whenever required to do so by any notice from the Commissioner, pre-
pare and deliver within the period mentioned in such notice a list signed by him
containing-
(a)a true and correct statement of all such income;
(b)the name and address of every person to whom the
income belongs and such other information as the
Commissioner may think necessary for the purposes
of this Act,
and the provisions of this Act with respect to the failure to deliver lists or
particulars in accordance with a notice from the Commissioner shall apply to
any such list.
28. The manager or other principal officer of every corporate body of persons
shall be answerable for doing all such acts, matters and things as are required to
be done by virtue of this Act for the assessment of such body and payment of
the tax.
29.-(1) Every person answerable under this Act for the payment of tax on
behalf of another person may retain out of any money coming to his hands on
behalf of such other person so much thereof as is sufficient to pay such tax, and
shall be and is hereby indemnified against any person whatever for all payments
made by him in pursuance and by virtue of this Act.
(2) With respect to every person resident in Belize having the receipt, con-
trol, or disposal of money belonging to a non-resident person who derives
income from a source in Belize, the following provisions shall apply-
(a)he shall when required by the Commissioner pay the
tax due and payable by the non-resident;
(b)he is hereby made personally liable for the tax
Manager of
corporate bodies
of persons.
Indemnification
of representative.

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payable by him on behalf of the non-resident to the
extent of any amount that he has retained or should
have retained under subsection (1), but he shall not
be otherwise personally liable for the tax.
(3) For the purpose of this section every person who is liable under any
contract to pay money to a non-resident shall be deemed to be a person
having the control of money and to be acting in a representative capacity for
the payment of income tax chargeable on the non-resident, and all money due
by him under the contract shall be deemed to be money which comes to him
on behalf of the non-resident.
30.-(1) Subject to subsection (2), when any person dies during the basis year
and such person would but for his death have been chargeable to tax for the
year of assessment, or when any person dies during the year of assessment or
within two years after the expiration thereof and no assessment has been made
upon him for that year, the personal representative of such person shall be
liable to and charged with the payment of the tax with which such person
would have been chargeable, and shall be answerable for doing all such acts,
matters and things as such person if he were alive would be liable to do under
this Act.
(2) In the case of a person dying during the basis year, if his personal
representative distributes his estate before the commencement of the year of
assessment, such personal representative shall pay the tax at the rate or rates
in force at the date of distribution of the estate, if the rate of tax for the year of
assessment has not been fixed at that date.
General Powers of Commissioner
31.-(1) Every person who is chargeable to tax shall, without notice or
demand, file with the Commissioner on or before the last day of the third
month following the end of the basis year a return of income for that year in the
Deceased
persons.11 of 1964.
Returns.
19 of 1970.

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form prescribed and containing the information prescribed.
(2) Notwithstanding subsection (1), an employee need not file a return if
his only income was emoluments except-
(a)when claiming a refund of tax deducted by the
employer; or
(b)when requested by the Commissioner so to do; or
(c)where, on or after the end of the basis year, the
amount of tax payable on income for such basis year
is not fully paid.
(3) The Commissioner may by notice in writing require any person to
furnish him within a specified time with a return of income and such particulars
as may be required for the purposes of this Act to enable him to ascertain the
income of such person and, in particular, may require any person to produce all
books or other documents in his custody or under his control relating to such
income.
(4) Every person, whether he is or is not liable to pay income tax, upon
whom the Commissioner may cause a notice to be served requiring him to
make and deliver a return of his income, shall, within fifteen days after the
service of such notice, make and deliver to the Commissioner a return as afore-
said.
(5) A person who fails to deliver any return of income under this section
within the time specified, or within such extended period of time as the
Commissioner may allow, shall pay to the Commissioner a penalty of three
per cent of the tax that was unpaid when the return was required to be filed
for each month or part of a month in which the return was not delivered
continuing for a period of twenty months.
3 of 1971.
7 of 1982. 3 of 1971.
11 of 1964.
11 of 1964.

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(6) Any penalty levied under subsection (5) may be varied or dis-
charged by the Income Tax Appeal Board appointed under section 3 (3)
(notwithstanding that no question of assessment is involved) upon proof of
reasonable cause for the default.
(7) A penalty under subsection (5) shall not be levied where the return
was filed under subsection (2)(a) for the sole purpose of claiming a refund.
(8) Every person required by this section to file a return of income shall
in the return estimate the amount of tax payable in respect thereof.
32.-(1) Every employer or other person who is or may be required by this
Act or rules made thereunder to collect or pay any tax or other amount shall
keep in the country records and books of account including an annual inven-
tory in such form and containing such information as will enable the amounts of
the taxes payable under this Act or the taxes or other amounts that should
have been deducted, withheld or collected to be determined.
(2) Notwithstanding the generality of subsection (1), every person
carrying on a profession or business in which charges are made for services
rendered to members of the public shall make a separate record of every
service transaction made in the course of that profession or business except
where otherwise authorised in writing by the Commissioner.
(3) Where a person has failed to keep records and books of account
adequate for the purposes of this Act, the Commissioner may require him to
keep such records and books of account as he may specify and that person
shall thereafter keep records and books of account as so required.
(4) Every person required by this section to keep records and books of
account shall retain every record or book of account and every account,
voucher or other record necessary to verify such record or book of account
for a period of six years or until written permission for their earlier disposal
is obtained from the Commissioner.
19 of 1970.
Accounts
and records.
3 of 1971.

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(5) Every person who contravenes any of the provisions of this section is
guilty of an offence.
33.-(1) The Commissioner or a senior officer of his department who has
been authorised by him may, for any purpose related to the administration or
enforcement of this Act, at any reasonable time having regard to the regular
working hours and the related circumstances of the particular business, and
on production of his letter of authorization, enter into any premises or place
where a business is carried on or any property is kept or anything is done in
connection with the business or any books or records are or should be kept
pursuant to this Act and may:-
(a)audit or examine the books and records and any
account, voucher, letters, telegram or other docu-
ments which relates or may relate to the informa-
tion that is or should be in the books or records or
to the amount of tax payable under this Act;
(b)examine property described by an inventory or any
property, process or matter, an examination of which
may, in his opinion, assist in determining the accu-
racy of an inventory or in ascertaining the informa-
tion that is or should be in the books or records or
in determining the amount of tax payable under this
Act;
(c)require the owner or manager of the property or
business and any other person on the premises or
place to give him all reasonable assistance with his
audit or examination either orally or, if he so re-
quire, in writing, on oath or otherwise and, for that
purpose, require the owner or manager to attend at
the premises or place with him; and
Audit and
ancillary powers.
3 of 1971.

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(d)if during the course of such an audit or examination
it appears to him that there has been a violation of
this Act or a rule made thereunder, seize, take away
and retain any of the records, books, accounts,
vouchers, letters, telegrams and other documents
that appear to be relevant.
(2) Any records, books, accounts, vouchers, letters, telegrams and
other documents that are so seized or taken away shall be returned immedi-
ately if on appeal the Board is not satisfied that a violation of the Act ap-
pears to have been committed. (Notwithstanding that no question of assess-
ment is involved).
(3) An appeal made to the Board against any action by a person
authorised by the Commissioner to conduct an audit or examination under
subsection (d) of section (1) shall be lodged with the Chairman of the Board
within seven days of the date of seizure. The decision of the Board on this
matter shall be final.
(4) The Commissioner may, for any purpose related to the administration
or enforcement of this Act, by not less than seven days notice in writing,
require any person to attend before him and give evidence on oath and to
produce on oath all relevant books, letters, accounts, invoices, statements or
other documents in his possession or control.
(5) The Commissioner may, for any purpose related to the administration
or enforcement of this Act, authorize in writing any senior officer of his
department when accompanied by a Police Officer to enter and search, by
force, if necessary, any building, receptacle or place for documents, books,
records or other things which may afford evidence of a violation of this Act or
of a rule made thereunder and to seize, take away and retain any such docu-
ments, books, records or other things.
(6) Where any book, record or other document has been seized,

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examined or produced under this section, the person by whom it was seized
or examined or to whom it was produced may make, or cause to be made,
one or more copies thereof and in any case in which the person to whom the
original document was returned refuses or neglects to produce the original
document in court, after having been required to do so by the Commissioner,
a document purporting to be certified by the Commissioner to be a copy
made pursuant to this subsection shall be admissible in evidence and shall be
conclusive evidence of the contents of the original document.
(7) Any person who hinders, molests or in any way interferes with any
person, in the exercise of this authority under this section is guilty of an of-
fence.
34.-(1) The Commissioner may require any officer in the employment of the
government or any municipality or other public body to supply such particulars
as may be required for the purposes of this Act and which may be in the pos-
session of such officer.
(2) No officer mentioned in subsection (1) shall by virtue of this section be
obliged to disclose any particulars as to which he is under any statutory obliga-
tion to observe secrecy.
(3) Every employer, agent, contractor or other person when required to do
so by notice from the Commissioner shall within the time limited in the notice,
prepare and deliver a return or returns containing such information as the Com-
missioner may think necessary for the purposes of this Act, and the provisions
of this Act with respect to the failure to deliver returns or particulars in accor-
dance with a notice from the Commissioner shall apply to any such return or
returns.
(4) Where the employer, agent, contractor or other person is a body of
persons the manager or other principal officer shall be deemed to be the em-
ployer for the purposes of this section, and any director of a company, or
person engaged in the management of a company, shall be deemed to be a
Official
information and
official secrecy.
11 of 1964.
19 of 1970.

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person employed.
(5) Notwithstanding subsections (1) and (3), the Minister may make rules
requiring any person to prepare and deliver returns containing any information
required under this Act at such times and in such form as may be prescribed.
35.-(1) Where a trade, business, profession or vocation is carried on by two
or more persons jointly-
(a)the income of any partner from the partnership shall
be deemed to be the share to which he was entitled
during the basis year in the income of the partnership,
such income being ascertained in accordance with the
provisions of this Act, and shall be included in the
return of income to be made by such partner under
this Act;
(b)the precedent partner shall, when required by the Com-
missioner, make and deliver a return of the income of
the partnership for any year, such income being as-
certained in accordance with the provisions of this
Act, and declare therein the names and addresses of
the other partners in the firm together with the amount
of the share of the said income to which each partner
was entitled for that year;
(c)where no partner is resident in Belize, the return shall
be made and delivered by the attorney, agent, man-
ager or factor of the firm resident in Belize;
(d)the provisions of this Act with respect to the failure to
deliver returns or particulars in accordance with a no-
tice from the Commissioner shall apply to any return
required under this section.
Partnerships. 19 of 1970.

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(2) In this section “precedent partner” means the partner who of the part-
ners resident in Belize-
(a)is first named in the agreement of partnership; or
(b)if there be no agreement, is named singly or with
precedence to the other partners in the usual name of
the firm; or
(c)is the precedent acting partner if the partner named
with precedence is not an acting partner.
36.-(1) Every notice to be given by the Board or the Commissioner under this
Act shall be signed by a member of the Board or the Commissioner, as the case
may be, or by some person or persons from time to time appointed by the
Board or by the Commissioner for the purpose, and such notice shall be valid if
the signature of a member of the Board or of the Commissioner, as the case
may be, or of such person or persons is duly printed or written thereon:
Provided that any notice in writing under this Act to any person requiring
him to furnish particulars to the Board or to the Commissioner or any notice
under this Act requiring the attendance of any person or witness before the
Board or the Commissioner, shall be personally signed by the Commissioner or
a member of the Board or by any person duly authorised by the Commissioner
or the Board, as the case may be.
(2) A signature attached to any notice and purporting to be the signature of
any person so appointed shall be taken to be the signature of that person until
the contrary be shown.
37. Notice may be served on a person either personally or by being sent
through registered post to his last known business or private address, and
shall in the latter case be deemed to have been served, in the case of persons
resident in Belize, not later than the tenth day succeeding the day when
Signature
of notices.
11 of 1967.
Service of
notices.

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posted, and in the case of persons not so resident, the tenth day succeeding
the day on which the notice would have been received in the ordinary
course by post, and in proving such service it shall be sufficient to prove that
the letter containing the notice was properly addressed and posted.
Assessments
38.-(1) The Commissioner shall with all due dispatch assess the tax for the
basis year and levy any penalty that may be payable.
(2) Where a person has delivered a return, the Commissioner may –
(a)accept the return and make an assessment accord-
ingly; or
(b)refuse to accept the return, and, to the best of his
judgment, determine the amount of the chargeable
income of the person and assess him accordingly.
(3) Where a person has not delivered a return and the Commissioner is
of the opinion that such person is liable to pay tax, he may, according to the
best of his judgment, determine the amount of the chargeable income of such
person and assess him accordingly, but such assessment shall not affect any
liability otherwise incurred by such person by reason of his failure or neglect to
deliver a return.
(4) If the Commissioner –
(a)has refused to accept the return of income rendered
and charged a person to income tax in respect of a
sum in excess of the amount of income stated in the
return by such person, or
Commissioner
to make
assessments.
11of 1964.
3 of 1971.
8 of 1997.
19 of 1998.

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(b)discovers that a charge to income tax in re-
spect of a sum in excess of such amount ought
to be made, and an assessment is made at any
time within the year of assessment or within six
years after the expiration thereof,
the Commissioner, if satisfied that the act of omission or commission amounts
to fraud, art or contrivance, or gross and willful neglect on the part of the per-
son assessed or to be assessed, may charge such person, in respect of such
excess, additional income tax and surtaxes not exceeding double the amount of
the income tax and surtax payable on the excess.
(5) If a person has been assessed to income tax and it is discovered that
he was assessed on an amount less than the amount on which he should have
been assessed the Commissioner shall assess to income tax the additional
amount discovered and, unless the person has voluntarily reported the
omission or error before the due date for filing of the return of income or
before the assessment is made the Commissioner shall in addition charge a
sum equal to 10 per cent of the additional tax.
(6) Any additional tax charged under this section shall be added to the
assessment, and shall be collected and levied in a like manner as any tax
included in such assessment may be collected and levied.
(7) The Commissioner, in any case for reasons which may appear to him
sufficient, may, on appeal, remit the additional tax or any part thereof.
(8) Liability for tax shall not be affected by the fact that no assessment has
been made.
39. Where it appears to the Commissioner that any person liable to tax has not
been assessed or has been assessed at a less amount than that which ought to
have been charged, the Commissioner may, within the year of assessment or
within six years after the expiration thereof, assess such person at such amount
3 of 1971.
3 of 1971.
Additional
assessments.

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or additional amount, as according to his judgment ought to have been charged,
and the provisions of this Act as to notice of assessment, appeal and other
proceedings under this Act shall apply to such assessment or additional as-
sessment and to the tax charged thereunder.
40.-(1) The Commissioner shall as soon as possible prepare a record of per-
sons assessed to tax.
(2) Such records, in this Act hereinafter called the assessment records,
shall contain the names and addresses of the persons assessed to tax, the
amount of the chargeable income of each person, the amount of tax payable
by him, and such other particulars as may be prescribed.
41.-(1) For the purpose of facilitating the assessment of the income of persons
residing in the United Kingdom, the Minister may appoint an agent in the United
Kingdom who shall make enquires on behalf of the Commissioner in respect
of any such person as may apply to be dealt with through such agent and shall
ascertain and report to the Commissioner the amount of the chargeable in-
come of such person in accordance with this Act and shall forward to the
Commissioner the accounts and computations upon which his report is based.
(2) The Commissioner on receipt of the report shall enter the amount
reported in the assessment records, however-
(a)if it appears to the Commissioner that any error has occurred
in the accounts or computation he may refer the report back
for further consideration; and
(b)nothing in this section shall prevent an objection to the Board
or an appeal on a point of law to a judge conferred by sec-
tions 42 and 43.
Record of persons
assessed and
notices of
assessment.
11 of 1964.
Appointment
of agent in the
United Kingdom.
40 of 1963.
11 of 1964.
4 of 1962. 11 of 1964.

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42.-(1) The Commissioner shall cause to be served personally or sent by
registered post to each person whose name appears in the assessment
records, a notice addressed to him at his usual place of abode or business
stating the amount of his chargeable income and amount of the tax payable by
him and informing him of his rights under subsections (2) and (4), and of the
provisions of subsection (8).
(2) If any person disputes the assessment he may apply to the Commis-
sioner by notice in writing to review and to revise the assessment made upon
him and such notice shall state the precise grounds on which the assessment
is disputed.
(3) In the event of any person assessed who has disputed an assessment
agreeing with the Commissioner as to the amount at which he is liable to be
assessed, the assessment, where necessary, shall be amended accordingly
and notice of the tax payable shall be served upon such person.
(4) If any person assessed who has disputed an assessment made upon
him shall fail to agree with the Commissioner as to the amount at which he is
liable to be assessed, the Commissioner shall in writing notify him of the
amount at which he has been assessed and the person disputing the assess-
ment may, in writing by a notice of objection setting out as the grounds of his
objection the grounds stated in the application made under subsection (2),
apply to the Board requesting it to hear and determine his objection.
(5) On an objection against an assessment made to the Board, the onus
of proving that the assessment complained of is excessive shall be on the
appellant.
(6) On receipt of a notice of objection, a meeting of the Board shall be
summoned to hear the objection of the person assessed, and the Board may-
(a)require the person assessed and the Commissioner to
furnish such particulars as the Board may think neces- Power of
Commissioner
to revise
assessments
and of Board
to entertain
objections to
assessments.
11 of 1964.

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sary in order to ascertain the income or to determine
the amount of tax payable;
(b)require the person assessed and the Commissioner to
produce all books or other documents in their cus-
tody or under their control relating to such income;
(c)summon any person who the Board thinks is able to
give evidence respecting the assessment to attend be-
fore the Board;
(d)examine either on oath or otherwise the person as-
sessed, the Commissioner and any other person at-
tending before them (except the clerk, agent or other
person confidentially employed in the affairs of the
person assessed) by whom evidence is to be given.
(7) When the Board has heard the objection and determined the amount
of the assessment, any necessary amendment shall be made in the amount
assessed reducing it by the amount overcharged or increasing it by the amount
undercharged and notice of the amount of tax, if any, payable shall be served
upon the person assessed and that amount of tax shall, subject to section 43,
be the tax payable.
(8) Subject to subsection (9), the notice to be sent under subsection (2)
shall be sent within fifteen days from the date of the service of the notice of
assessment and the notice of objection to be sent under subsection (4) shall be
sent within fifteen days from the date of service of the notification of the amount
of the assessment sent by the Commissioner under subsection (4).
(9) Where owing to absence from the country, sickness or other reason-
able cause, the Board is satisfied on an application to that effect made by a
person wishing to dispute or object to an assessment that such person was
unable within the time mentioned in this section to make his application to the

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Commissioner for a review or revision of the assessment or that having made
such application he was unable within the time mentioned in this section to
serve a notice of objection on the Board, the Board by notice in writing ad-
dressed to such person and to the Commissioner may grant such extension of
time as the Board considers reasonable in the circumstances.
43.-(1) If either the Commissioner or a person whose objection has been
determined by the Board is dissatisfied with the decision of the Board on the
ground that the decision was erroneous in point of law, he may appeal to a
judge in chambers to hear and determine any question of law arising on the
objection and the decision of the Board, upon giving notice in writing to the
other party to the proceedings before the Board within thirty days from the
date of the decision of the Board.
(2) Notwithstanding the lapse of such period of thirty days, any person
may appeal against the said assessment if he shows to the satisfaction of a
judge that, owing to absence from the country, sickness or other reasonable
cause, he was prevented from giving notice of appeal within such period, and
that there has been no unreasonable delay on his part.
(3) Any person who appeals against an assessment shall attend before a
judge in person on the day and at the time fixed for the hearing of his appeal.
(4) If it be proved to the satisfaction of a judge that owing to the
absence from Belize, sickness, or other reasonable cause, any person is
prevented from attending in person at the hearing of his appeal on the day
and at the time fixed for that purpose, a judge may postpone the hearing of
the appeal for such reasonable time as he thinks necessary for the attendance
of the appellant, or he may admit the appeal to be made by any agent, clerk
or servant of the appellant, on his behalf.
(5) Ten clear days’ notice shall, unless rules made hereunder otherwise
provide, be given to the appellant and respondent of the date fixed for the
Appeals against
assessments.
11 of 1964.
4 of 1976.
4 of 1967. 4 of 1967.
11 of 1964.

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hearing of the appeal.
(6) The onus of proving that the assessment or any part thereof is
wrong shall be on the appellant.
(7) If a judge is satisfied that the appellant is overcharged he may
reduce the amount of the assessment by the amount of the overcharge, and
if he is satisfied that the appellant is undercharged, he may increase the
amount of the assessment by the amount of the undercharge.
(8) Notice of the amount of tax payable under the assessment as
determined by a judge shall be served by the Commissioner upon the
appellant.
(9) All appeals shall be heard in camera, unless a judge shall, on the
application of the appellant, otherwise direct.
(10) The costs of the appeal shall be in the discretion of the judge
hearing the appeal, and shall be a sum fixed by the judge.
(11) The judge may make rules governing such appeals and providing for
the method of tendering evidence.
(12) The decision of a judge shall be final, but a judge if he so desires
may, and on the application of the appellant or of the Commissioner, shall,
state a case on a question of law for the decision of Her Majesty in Council
under the provisions of the Privy Council Appeals Act.
44.-(1) No assessment, warrant or other proceeding, purporting to be
made in accordance with the provisions of this Act, shall be quashed, or
deemed to be void or voidable, for want of form, or be affected by the
reason of a mistake, defect or omission therein, if it is in substance and
effect in conformity with or according to the intent and meaning of this Act
or any Act amending it, and if the person assessed or intended to be
11 of 1964.
11 of 1964.
4 of 1967.
4 of 1967.
4 of 1967.
4 of 1967. 4 of 1967.
4 of 1967.
CAP. 92.
Errors, etc., in
assessments and
notices.

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assessed or affected thereby is designated therein according to common
intent and understanding.
(2) An assessment shall not be impeached or affected –
(a)by reason of a mistake therein as to –
(i) the name or surname of a person liable; or
(ii)the description of any income; or
(iii)the amount of tax charged;
(b)by reason of any variance between the assessment
and the notice thereof.
(3) In cases of assessment the notice thereof shall be duly served on the
person intended to be charged and such notice shall contain, in substance and
effect, the particulars on which the assessment is made.
45. The production of any document under the hand of a member of the
Board or the Commissioner or of any person or persons appointed by the
Board or the Commissioner purporting to be a copy of or extract from any
return or assessment shall in all courts and in all proceedings be sufficient
evidence of the original, and the production of the original shall not be neces-
sary, and all courts shall in all proceedings take judicial notice of the signa-
tures of a member of the Board or the Commissioner or of any person or
persons appointed by the Board or the Commissioner either to the original or
to such copy or extract.
Relief in Cases of Double T axation
46.-(1) Any person who has paid, by deduction or otherwise, or is liable to
pay tax, under this Act for any year of assessment on any part of his income
Evidence.
11 of 1964.
Relief in respect
of United
Kingdom

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and who proves to the satisfaction of the Commissioner that he has paid by
deduction or otherwise or is liable to pay income tax in the United Kingdom
for that year in respect of the same part of his income, shall be entitled to
relief from tax under this Act paid or payable by him on that part of his
income at a rate equal to the amount by which the rate of tax appropriate to
his case under this Act exceeds half the appropriate rate for United King-
dom tax.
(2) If, however, the rate of tax appropriate to his case under this Act
exceeds the appropriate rate of United Kingdom tax he shall be entitled only
to relief at a rate equal to half the appropriate rate of United Kingdom tax:
Provided that where in the case of any individual but for this proviso
the amount of tax payable under this Act after allowance of any relief under
subsection (1), when added to the amount of income tax payable in the
United Kingdom in respect of the same part of his income after allowance of
such relief as is granted by section 27 of the Finance Act 1920, which
amount is hereinafter referred to as “the net United Kingdom tax” would
exceed the greater of the amounts of tax which, but for the reliefs aforesaid,
would be payable under this Act and in United Kingdom respectively which
amounts are hereinafter referred to respectively as “the gross Colonial tax”
and “the gross United Kingdom tax”, the Commissioner may, if he is satis-
fied that special hardship would otherwise be caused, grant such additional
relief from the tax payable under this Act as he may think fit up to an amount
sufficient to reduce the net tax so payable to an amount which when added
to the net United Kingdom tax, will be equivalent to the gross Colonial tax
or the gross United Kingdom tax, whichever is the greater.
(3) For the purposes of this section a certificate issued by or on behalf
of the Commissioners of Inland Revenue in the United Kingdom shall be
receivable in evidence to show what is the appropriate rate of United
Kingdom tax or the net United Kingdom tax in any particular case.
(4) For the purposes of this section, the expression “rate of tax”, when Income Tax.
11 of 1964.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Income and Business Tax[CAP. 55
[] 55
applied to tax paid or payable under this Act means the rate determined by
dividing the amount of the tax paid or payable for any year before the deduc-
tion of the relief granted under this section by the amount of the income in
respect of which the tax paid or payable under this Act has been charged for
that year, except that where the income which is the subject of a claim to
relief under this section is computed by reference to section 25 of this Act on
an amount other than the ascertained amount of the actual profits, the rate of
tax shall be determined by the Commissioner.
47.-(1) If any person resident in Belize who has paid, by deduction or
otherwise, or is liable to pay, tax under this Act for any year of assessment or
any part of his income, proves to the satisfaction of the Commissioner that he
has paid by deduction or otherwise, or is liable to pay, Commonwealth
income tax for that year in respect of the same part of his income, he shall be
entitled to relief from tax in Belize paid or payable by him on that part of his
income at a rate thereon to be determined as follows-
(a)if the Commonwealth rate of tax does not exceed
one-half of the rate of tax appropriate to his case
under this Act in Belize the rate at which relief is to
be given shall be the Commonwealth rate of tax;
(b)in any other case the rate at which relief is to be
given shall be half the rate of tax appropriate to his
case under this Act.
(2) If any person not resident in Belize who has paid, by deduction or
otherwise, or is liable to pay, tax under this Act for any year of assessment
on any part of his income, proves to the satisfaction of the Commissioner that
he has paid, by deduction or otherwise, or is liable to pay, Commonwealth
income tax for that year of assessment in respect of the same part of his
income, he shall be entitled to relief from tax paid or payable by him under
this Act on that part of his income at a rate thereon to be determined as
follows-
Relief in
respect of
Commonwealth
Income Tax.
11 of 1964.

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(a)if the Commonwealth rate of tax appropriate to his
case does not exceed the rate of tax appropriate to
his case under this Act, the rate at which relief is to
be given shall be one-half of the Commonwealth
rate of tax;
(b)if the Commonwealth rate of tax appropriate to his
case exceeds the rate of tax appropriate to his case
under this Act, the rate at which relief is to be given
shall be equal to the amount by which the rate of tax
appropriate to his case under this Act exceeds one-
half of the Commonwealth rate of tax.
(3) For the purposes of this section, Commonwealth income tax means
any income tax charged under any law in force in a Commonwealth country
or in any place under Her Majesty’s protection other than the United
Kingdom or Belize, where the legislature of that country or place has
provided for relief in respect of tax charged on income both in that country
or place and in Belize in a manner similar to that provided in this section.
(4) For the purposes of this section, the rate of tax under this Act shall
be computed in the manner provided by section 46 (3) and the Common-
wealth rate of tax shall be computed in a similar manner.
(5) Where a person is for any year of assessment resident both in Belize
and in a part or place in which Commonwealth income tax is charged, he
shall for the purposes of this section be deemed to be resident where during
that year he resides for the longer period.
48.-(1) Subject to subsection (2), a claim for relief under section 46 or 47
shall be made within two years from the end of the year of assessment to
which it relates.
(2) A claim for relief under section 46 or 47, though not made within the
Time for
making claim.

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Income and Business Tax[CAP. 55
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said period of two years, shall be admitted if made within six months from the
date upon which the relevant amount of United Kingdom income tax or of
Commonwealth income tax, as the case may be, has been ascertained.
49. Where, under any law in force in a Commonwealth country or in any
place under Her Majesty’s protection, provision is made for the allowance of
relief from income tax in respect of the payment of income tax in Belize, the
obligation as to secrecy imposed by section 4 shall not prevent the disclosure
to the authorised officers of the government in that Commonwealth country
or in that place under Her Majesty’s protection of such facts as may be
necessary to enable the proper relief to be given in cases where relief is
claimed from income tax in Belize or from income tax in that part or place
aforesaid.
50.-(1) If the Minister by Order declares that arrangements specified in the
Order have been made with the government of any territory outside Belize
with a view to affording relief from double taxation in relation to income tax
and any tax of a similar character imposed by the laws of that territory, and
that it is expedient that those arrangements should have effect, the arrange-
ments shall have effect in relation to income tax notwithstanding anything in
any enactment.
(2) On the making of an Order under this section with respect to ar-
rangements relating to the United Kingdom, section 46 shall cease to have
effect except in so far as the arrangements otherwise provide.
(3) On the making of an Order under this section with respect to
arrangements relating to any Commonwealth country other than the United
Kingdom, or Belize, section 47 shall cease to have effect as respects that
territory except in so far as the arrangements otherwise provide.
(4) Any Order made under this section may be revoked by a subsequent
Order.
Official secrecy.
Double taxation
arrangements.
40 of 1963.

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(5) Where any arrangements have effect by virtue of this section, the
obligation as to secrecy imposed by section 4 shall not prevent the disclo-
sure to any authorised officer of the government with which the arrange-
ments are made of such information as is required to be disclosed under the
arrangements.
(6) The Minister may make rules for carrying out the provisions of
any arrangements having effect under this section.
51.-(1) The provisions of this section shall have effect where, under ar-
rangements having effect under section 50, tax payable in respect of any
income in the territory with the Government of which the arrangements are
made is to be allowed as a credit against tax payable in respect of that
income in Belize, and in this section the expression “foreign tax” means any
tax payable in that territory which under the arrangements is to be so
allowed and the expression “income tax” means tax chargeable under this
Act.
(2) The amount of the income tax chargeable in respect of the income
shall be reduced by the amount of the credit, but credit shall not be allowed
against income tax for any year of assessment unless the person entitled to
the income is resident in Belize for that year.
(3) The credit shall not exceed the amount which would be produced
by computing the amount of the income in accordance with the provisions of
this Act and then charging it to income tax at a rate ascertained by dividing
the income tax chargeable before allowance of credit under any arrange-
ments having effect under section 50 on the total income of the person
entitled to the income by the amount of his total income.
(4) Without prejudice to subsection (5), the total credit to be allowed
to a person for any year of assessment for foreign tax under all arrange-
ments having effect under section 50 shall not exceed the total income tax
payable by him for that year of assessment, less any tax payable by him
Tax credits.

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Income and Business Tax[CAP. 55
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under section 31.
(5) In computing the amount of the income –
(a)no deduction shall be allowed in respect of foreign
tax whether in respect of the same or any other
income;
(b)where the income tax chargeable depends on the
amount received in Belize, the said amount shall be
increased by the appropriate amount of the foreign
tax in respect of the income;
(c)where the income includes a dividend and under the
arrangements foreign tax not chargeable directly or
by deduction in respect of the dividend is to be taken
into account in considering whether any, and, if so,
what credit is to be given against income tax in
respect of the dividend, the amount of the income
shall be increased by the amount of the foreign tax
not so chargeable which falls to be taken into ac-
count in computing the amount of the credit, but
notwithstanding anything in paragraphs (a) and (b) of
this subsection, a deduction shall be allowed of any
amount by which the foreign tax in respect of the
income exceeds the credit therefor.
(6) Paragraphs (a) and (b) of subsection (5) but not paragraph (c)
shall apply to the computation of total income for the purposes of determining
the rate mentioned in subsection (3), and of which credit falls to be given for
foreign tax under arrangements for the time being in force under section 50.
(7) Where-

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(a)the arrangements provide, in relation to dividends of
some classes, but not in relation to dividends of
other classes, that foreign tax not chargeable
directly or by deduction in respect of dividends is to
be taken into account in considering whether any,
and, if so, what credit is to be given against income
tax in respect of the dividends, and
(b)a dividend is paid which is not of a class in relation
to which the arrangements so provide,
then, if the dividend is paid to a company which controls, directly or indi-
rectly, not less than one-half of the voting power in the company paying the
dividend, credit shall be allowed as if the dividend were a dividend of a
class in relation to which the arrangements so provide.
(8) Credit shall not be allowed under the arrangements against
income tax chargeable in respect of the income of any person for any year
of assessment if he elects that credit shall not be allowed in the case of his
income for that year.
(9) Any claim for an allowance by way of credit shall be made not
later than two years after the end of the year of assessment, and in the event
of any dispute as to the amount allowable, the claim shall be subject to
review, objection and appeal in like manner as an assessment.
(10) Where the amount of any credit given under the arrangements is
rendered excessive or insufficient by reason of any adjustment of the amount
of any tax payable either in Belize or elsewhere, nothing in this Act limiting
the time for the making of assessments or claims for relief shall apply to any
assessment or claim to which the adjustment give rise, being an assessment
or claim made not later than two years from the time when all such assess-
ments, adjustments and other determinations have been made, whether in
Belize or elsewhere, as are material in determining whether any, and, if so,
11 of 1964.

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Income and Business Tax[CAP. 55
[] 61
what credit falls to be given.
52.-(1) Where the tax paid or payable by a company is affected by double
taxation relief, the amount to be set off under section 51 to be repaid under
section 61, in respect of the tax deductible from any dividend paid by the
company shall be reduced as follows-
(a)if no tax is chargeable on the recipient in respect of the
dividend, the reduction shall be an amount equal to tax on
the gross dividend at the rate of double taxation relief
applicable thereto;
(b)if the rate of tax chargeable on the recipient in respect of
the dividend is less than the rate of double taxation relief
applicable to the dividend, the reduction shall be an
amount equal to tax on the gross dividend at the differ-
ence between those two rates.
(2) For the purposes of this section-
(a)if the income of the person chargeable includes one
dividend such as is mentioned in subsection (1), that
dividend shall be deemed to be the highest part of his
income;
(b)if his income includes more than one such dividend, a
dividend shall be deemed to be a higher part of his
income than another dividend if the net Colonial rate
applicable to the former dividend is lower than that
applicable to the latter dividend;
(c)where tax is chargeable at different rates in respect of
different parts of any such dividend, or where tax is
chargeable in respect of some part of any such
Double taxation
relief applicable
to dividends.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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dividend and is not chargeable in respect of some
other part thereof, each part shall be deemed to be
a separate dividend;
(d)the expression “double taxation relief ” has the same
meaning as in section 22, and the expression “the
rate of double taxation relief” means the rate which
represents the excess of the rate of tax deductible
from the dividend over the net colonial rate appli-
cable thereto.
Collection and Repayment of T ax
53.-(1) The Commissioner shall from time to time deliver to the Chief
Collector certified extracts from the assessment records containing the
names and addresses of the persons assessed together with the amount of
tax payable by each person.
(2) A notice of a review or an objection or an appeal against the
assessment made by the Commissioner shall not result in the suspension of
such assessment, and the entire tax due as determined by the Commissioner
shall be payable before any such review, objection or appeal is entertained.
(3) The Chief Collector shall in every case enforce payment of the tax
as assessed by the Commissioner irrespective of any pending review,
objection or appeal.
(4) Where any review, objection or appeal as aforesaid results in less
tax being payable by the taxpayer than that assessed by the Commissioner,
the excess tax paid by the taxpayer shall, subject to any further appeal by
the Commissioner or the taxpayer, be promptly refunded to the taxpayer
with interest thereon from the date of payment of such excess tax until the
date of such refund, at such rate of interest as may be determined by the
Extracts from
assessment lists
to be sent to
Collector.
11 of 1964.
7 of 1999.
7 of 1999.

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Income and Business Tax[CAP. 55
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person or body conducting or hearing the review, objection or appeal, as the
case may be.
54. Tax shall be payable within the period prescribed.
55. If any tax is not within the period prescribed –
(a)a sum equal to 1½ per cent of the amount of the tax
not paid shall be added thereto per month commenc-
ing the day following the last day of the prescribed
period and continuing until the date of payment, and
the provisions of this Act relating to collection and re-
covery of tax shall apply to the collection and recovery
of such sum;
(b)the Chief Collector shall serve a demand note upon
the person assessed, and if payment is not made within
thirty days from the date of the service of such demand
note, the Chief Collector may proceed to enforce pay-
ment as provided in sections 57 to 59.
56.-(1) Where payment of tax in whole or in part has been held over
pending the result of a review or of a notice of objection or of an appeal, the
tax outstanding under the assessment as determined on such review, objec-
tion or appeal, as the case may be, shall be payable within thirty days from
the receipt by the person assessed of the notification of the tax payable.
(2) Notwithstanding the provisions of subsection (1) of this section,
where as a result of review, objection, or appeal, as the case may be, some
tax (whether more or less than the original tax assessed) remains payable by
the taxpayer, such tax shall be deemed as arrears of tax and the provisions of
section 55 of this Act relating to penalty shall apply to such tax.
Penalty for
non-payment of
tax, and
enforcement of
payment.
3 of 1971.
3 of 1984.
16 of 1994.Time within
which payment
is to be made.
Collection of
tax after
determination
of objection or
appeal.
16 of 1994.

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57. All taxes, penalties, costs or other amounts payable under this Act,
or under rules made thereunder, are debts due to the Crown and recover-
able as such in any court of competent jurisdiction or in any other manner
provided by this Act.
58.-(1) When the Commissioner has knowledge or suspects that a person is
or is about to become indebted to or is otherwise liable to make a payment
to a person who has failed to make a payment due under this Act or under
rules made thereunder, the Commissioner may, by registered letter or by
letter served personally, require such first mentioned person to pay the
moneys otherwise payable to such second mentioned person in whole or in
part to the Commissioner on account of the liability of the second mentioned
person to make a payment due under this Act or rules made thereunder.
(2) The receipt of the Commissioner for moneys paid as required
under this section shall be to the extent of payment a good and sufficient
discharge of the original debt or other liability.
(3) Where the Commissioner pursuant to subsection (1) has
required an employer to pay to him on account of an employee’s liability
under this Act or rules made thereunder moneys otherwise payable by the
employer to the employee as emoluments, the requirements shall apply to all
future payments by the employer to the employee in respect of emoluments
until such liability is satisfied, and shall operate to require payments to the
Commissioner out of each payment of emoluments of such amounts as may
be required by the Commissioner.
(4) Any person, who has made any payment by way of satisfaction,
in whole or in part, of any debt or other liability due to another person and
has failed to comply with any requirement of the Commissioner under this
section, is liable to pay to the Crown an amount equal to the amount paid by
way of such satisfaction or the amount which he was required to pay the
Commissioner, whichever be the less.
Garnishment
of debts.
3 of 1971.Debt to
the Crown.
3 of 1971.

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Income and Business Tax[CAP. 55
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(5) Notwithstanding subsection (1), where the person who is or is
about to become so indebted or otherwise liable carries on business under a
name or style other than his own name, the registered or other letter contain-
ing the Commissioner’s requirement may be addressed in the name or style
under which he carries on business and in the case of personal service shall
be deemed to have been served if it is left with an adult person at the place of
business of the addressee.
(6) Notwithstanding subsection (1), where the persons who are or
are about to become so indebted or otherwise liable carry on business as a
partnership, the registered or other letter containing the Commissioner’s
requirement may be addressed in the partnership name and in the case of
personal service shall be deemed to have been served if it has been served
on any one of the partners or has been left with an adult person employed at
the place of business of the partnership.
(7) For the purposes of this section “Commissioner” includes any
officer or other person from time to time authorized by the Commissioner to
act pursuant thereto.
59.- (1) If in any particular case the Commissioner has reason to believe
that a person who has been assessed to tax may leave Belize before the tax
becomes payable under section 53, 54 or 55 without having paid such tax,
he may by notice in writing to such person demand payment of the tax within
the time to be limited in the notice.
(2) Such tax shall thereupon be payable at the expiration of the time
so limited and shall in default of payment, unless security for payment thereof
be given to the satisfaction of the Commissioner, be recoverable forthwith in
the manner prescribed by section 57.
(3) If in any particular case the Commissioner has reason to believe
that tax upon any chargeable income may not be recovered, he may at any
time and as the case may require-
Recovery
of tax in
certain cases.
11 of 1964.

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(a)forthwith by notice in writing require any person to
make a return and to furnish particulars of any such
income within the time to be specified in such
notice;
(b)make an assessment upon such person in the
amount of the income returned; or if default is made
in making such return or the Commissioner is
dissatisfied with such return, in such amount as the
Commissioner may think reasonable;
(c)by notice in writing to the person assessed require
that security for the payment of the tax assessed be
forthwith given to his satisfaction.
(4) If in any particular case the Commissioner has reason to believe
that tax upon any income which would upon the issue of a proclamation
imposing tax for any year of assessment become chargeable to such tax may
not be recovered he may at any time-
(a)by notice in writing to the person by whom the tax
would be payable determine a period for which tax
shall be charged and require such person to render
within the time specified therein returns and
particulars of such income for that period;
(b)make an assessment upon such person in the
amount of the income returned or, if default is
made in making a return or the Commissioner is
dissatisfied with such return, in such amount as the
Commissioner may think reasonable, and such
assessment shall be made at the rate of tax imposed
by the last preceding proclamation.

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Income and Business Tax[CAP. 55
[] 67
(5) Notice of any assessment made in accordance with subsections
(3) and (4) shall be given to the person assessed, and any tax so assessed in
accordance with subsections (3) and (4) shall be payable on demand made
in writing under the hand of the Commissioner and shall in default of pay-
ment, unless security for the payment thereof be given to the satisfaction of
the Commissioner, be recoverable forthwith in the manner prescribed by
section 57.
(6) Any person who has paid the tax in accordance with a demand
by the Commissioner or who has given security for such payment under
subsections (3) and (4) shall have the rights of review, objection and appeal
conferred by sections 42 and 43 and the amount paid by him shall be ad-
justed in accordance with the result of any such review, objection or appeal.
(7) Subsections (3) and (4) shall not affect the powers conferred
upon the Commissioner by section 39.
60.-(1) Subject to subsection (3), no person shall leave or attempt to leave
Belize, unless such person has in his possession a certificate in the prescribed
form issued by the Commissioner on payment of the prescribed fee certifying
that such person –
(a)does not owe any income tax; or
(b)has made satisfactory arrangements for the payment
of any income tax payable by him.
(1A) The certificate issued under subsection (1) may be valid for
such period as may be prescribed.
(2) Any person who neglects to comply with or acts in contravention
of this section is guilty of an offence.
(3) It shall be a good defence to any proceedings against any person
Exit certificate.
11 of 1964.
32 of 1987.
32 of 1987

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in respect of an offence against this section to prove that the certificate
required by subsection (1) could properly have been issued and that there
has been undue delay on the part of the Commissioner in issuing it.
(4) Subsection (1) shall not apply to-
(a)any member of the Military, Naval or Air Forces of
Her Majesty or of any foreign state;
(b)any person in the diplomatic or consular service of a
foreign state unless any such person is also engaged
in any business or other employment in Belize;
(c)any person to whom the Diplomatic Privileges and
Consular Conventions Act applies;
(d)any person under 16 years;
(e)any passenger in transit.
(5) The Minister may, from time to time by Order published in the
Gazette, prescribe the fees to be paid for the issue of exit certificates.
(6) Every Order made by the Minister under subsection (5) shall as
soon as may be after the making thereof be laid before the House of Repre-
sentatives and shall be subject to negative resolution.
61.-(1) If it be proved to the satisfaction of the Commissioner that any
person for any year of assessment has paid tax, by deduction or otherwise,
in excess of the amount with which he is properly chargeable, such person
shall be entitled to have the amount so paid in excess refunded.
(2) Every claim for repayment under this section shall be made
within six years from the end of the year of assessment to which the claim
32 of 1987.
CAP. 23.
32 of 1987.
32 of 1987.
Repayment
of tax.
11 of 1964.

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Income and Business Tax[CAP. 55
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relates.
(3) The Commissioner shall give a certificate of the amount to be
repaid and upon the receipt of the certificate the Chief Collector shall cause
repayment to be made in conformity therewith.
(4) Except as regards sums repayable on a review or an objection or
appeal, no repayment shall be made to any person in respect of any year of
assessment as regards which that person has failed or neglected to deliver a
return or has been assessed in a sum in excess of the amount contained in his
return, if he has received notice of the assessment made upon him for that
year, unless it is proved to the satisfaction of the Commissioner that such
failure or neglect to deliver a true and correct return did not proceed from
any fraud or wilful act or omission on the part of that person.
Pr oceedings for Recover y of Income T ax
62.-(1) The Chief Collector shall from time to time cause to be inserted in
three consecutive issues of the Gazette a notice to the effect that warrants
will be issued for the recovery of all income tax remaining unpaid for over
sixty days from the issue of notice of assessment, together with the fines due
thereon.
(2) A definite day may be fixed in the said notice, which shall not be
less than one month from the first publication of the said notice, and such
publication shall be sufficient notice to all defaulters.
(3) Where persons have made arrangements with the Chief Collector
to pay their income tax by instalments, and make default in the payment of
any instalment, the whole of the tax then remaining unpaid shall immediately
become due and payable, but steps to recover it shall not be taken under this
section unless sixty days have elapsed since the issue of the notice of assess-
ment or until any instalment is in arrear for fifteen days.
Notice to be
given to tax
defaulters.
11 of 1964.
11 of 1964.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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63.-(1) The Chief Collector shall, from time to time, issue to any persons
whom he may employ in the several districts as bailiffs for this purpose
(hereinafter referred to as “bailiffs”) warrants directing and authorising them
in manner hereinafter provided to make a levy upon the goods of all default-
ers for the payment of taxes and fines thereon remaining unpaid for more
than sixty days from the issue of the notice of assessment.
(2) In all cases where default has been made by several persons in
the same district, it shall be sufficient for the Chief Collector to attach to any
warrant a list duly signed by him setting out extracts from the assessment
records showing the names of such defaulters, the particulars of the proper-
ties charged with unpaid income tax, the taxes which are unpaid together
with the amounts of such taxes and the fines due thereon respectively.
64.-(1) Notwithstanding that the name of the person who has made default
in the payment of the tax is included in a list to any warrant authorising a levy
as provided in section 10, the Chief Collector may at any time that such tax
remains unpaid cause the operation of the said warrant to be suspended as
against such defaulter and in lieu thereof to apply to the magistrate of the
district in which the person in default is for the time being staying or residing,
for a summons directing the defaulter to attend before such magistrate, at a
time to be named in the summons, to show cause why he should not be
ordered to pay the amount aforesaid, as a judgment debt, and the magis-
trate may issue such summons and cause it to be served and deal with the
defaulter in such manner as is provided in section 65.
(2) Notice of any application intended to be made under this
section shall be given by the Chief Collector to the Minister.
Judgment Debtor Pr ocess
65. If a summons for enabling the defaulter to show cause as mentioned in
section 71 is issued, the magistrate may on the date named in the summons
or at any other date to which the hearing may be adjourned, order the
Collector to issue
warrants against
goods for
recovery of taxes.
11 of 1964.
11 of 1964.
Suspension of
execution and
institution of
proceedings before
Magistrates.
Magistrate may
order payment of
tax, etc., into court.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Income and Business Tax[CAP. 55
[] 71
defaulter to pay into court the amount of the unpaid tax and fines, and such
costs and expenses as are for this purpose from time to time fixed by the
Minister, or order him to pay into court any part of such amount which the
magistrate may think the defaulter able to pay or arrange for paying, within
seven days of the order or within such extended time as may be determined
by the magistrate, and either in a lump sum or by instalments.
66.-(1) If the person summoned as provided in section 64 fails to comply
with the summons without lawful excuse or if he makes default in payment
into court in the manner aforesaid, the magistrate may commit such person to
prison for a term not exceeding six weeks or until payment of the sum
ordered to be paid (if paid before the expiration of such term).
(2) No committal under subsection (1) shall be ordered for default in
payment unless it be proved to the satisfaction of the magistrate that the
person making default either has or has had since the date of the order, the
means to pay the sum in respect of which he has made default, and has
refused or neglected, or refuses or neglects, to pay it.
(3) Proof of the means of the person making default may be given in
such manner as the magistrate thinks just, and, for the purposes of such
proof, the debtor and any witness may be summoned and their attendance
enforced by the same processes as in cases in which the magistrate has
summary jurisdiction in criminal matters, and such debtor and witnesses may
be examined on oath.
(4) Every order of committal under this section shall be issued,
obeyed, and executed in manner similar to commitments by magistrates in the
exercise of their summary jurisdiction in criminal cases.
(5) Imprisonment under this section shall not operate as a satisfac-
tion or extinguishment of the judgment debt. 40 of 1963.
Imprisonment for
failure to obey
order.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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67. In any event of the defaulter paying the whole of the amount ordered to
be paid as provided in section 65, the magistrate shall give notice of such
payment to the Minister and shall remit to the Chief Collector the amount so
paid, deducting such parts thereof as may represent the court costs.
Pr oceedings by way of Distr ess
68.-(1) For the purpose of levying any distress a bailiff shall execute a
warrant issued to him by the Chief Collector according to the tenor thereof,
and such warrant shall be in the form set out in the First Schedule.
(2) On payment of the tax and fines and expenses accrued thereon,
the bailiff shall give acquittances under his hand unto the persons who pay
them onnumbered (counterfoil) receipt forms with which the bailiff shall be
supplied by the Chief Collector, and shall pay over to the Chief Collector
daily, or at such other times as the Chief Collector may direct, all money
received by him under this Act.
69.-(1) When any goods or chattels are distrained on, they shall, after due
notice given in the Gazette, be sold by the bailiff at public auction in such a
manner as is usual in sales under executions issuing out of the district court
and, until the sale, the goods shall be kept in the custody of the Commis-
sioner.
(2) The money arising from the sale shall be paid over by the bailiff to
the Chief Collector after deducting therefrom all reasonable and necessary
charges and expenses attending the levy and sale which may be allowed by
the Chief Collector, and these proceeds of sale shall be applied by the Chief
Collector towards satisfaction of the unpaid tax, fines, and costs, and the
surplus (if any) shall be restored on demand to the owner of the goods
distrained, but –
(a) tools of trade, bedding and wearing apparel amounting in all
Debtor paying
whole of amount
ordered to be paid.
Form and scope of
warrant.
First Schedule.
Sale of goods
levied on and
disposal of
proceeds.
8 of 1997.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Income and Business Tax[CAP. 55
[] 73
to the value of fifty dollars shall be exempted from execution;
(b)after a levy the owner of the goods seized may redeem them
at any time before the time appointed for the sale by paying
to the bailiff the full amount of the tax and fines thereon,
together with all costs and expenses incurred in relation
thereto by the date of such payment;
(c)if at such public auction there are no bids sufficient to cover
the tax, fines, costs and expenses, the unsold goods shall
become the property of the Government of Belize.
70.-(1)The bailiff’s fees which may be included in a claim of levy under a
warrant may be in such sum and according to such scale as is fixed from time
to time by the Minister.
(2) All such fees shall be paid by the defaulters against whom warrants
are issued, and the Minister may award to any bailiff such proportion thereof
as he thinks fit.
Execution Against Lands or Houses
71.-(1) If the amount of the taxes due and recoverable from a defaulter and
of the fines, costs and expenses chargeable as aforesaid have not been, or in
the opinion of the Chief Collector cannot be, raised by the sale of the goods
of the defaulter, the Chief Collector may put up for sale either the whole of
any lands or houses in Belize to which the defaulter is beneficially entitled, or
such part thereof as in the discretion of the Chief Collector may be selected
and marked off as sufficient to realise the required amount.
(2) In default of satisfaction of the debt by any such sale as described
in subsection (1), then, if the lands or houses charged with the payment of
unpaid income tax had passed out of the possession of the defaulter before
the date of the said sale and consequently such last mentioned lands or
Bailiff ’s fees.
40 of 1963.
40 of 1963.
Failing to recover
on goods the
Collector to sell
realty of defaulter.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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[] 74
houses had not been levied upon as aforesaid, the Chief Collector may in
the last instance proceed to levy and sell the lands or houses last mentioned.
(3) The Chief Collector may issue to the officer in charge of the
Revenue Office of the district in which any lands or houses intended for sale
are situate, a praecipe to levy the tax by the sale of the lands or houses
therein mentioned which praecipe shall be in the form set out in the Second
Schedule.
72.-(1)Before proceeding with the sale of any land or house as described
in section 71 the Chief Collector or the officer conducting such sale shall
serve or cause to be served on the person in default a notice in the form set
out in the Third Schedule.
(2) Except in cases specially sanctioned by the Chief Collector, or the
officer conducting the sale, every such notice shall be served personally on
the person in default.
(3) Whenever the Chief Collector or the officer conducting the sale
has reason to think that the person in default is avoiding service of the
notice, or that neither he nor his authorised agent can be found, the Chief
Collector or officer may order the notice to be affixed in some conspicuous
manner to the property with respect to which the praecipe to levy has been
issued.
(4) The server or bailiff serving any such notice personally shall
endeavour to explain its purport fully to the person upon whom it is served,
and shall offer to prepare, and, if so requested, shall write out the statement
which such person is required to make.
(5) In this latter event, the signature or mark of such person shall, if
practicable, be attested by a witness other than the server or bailiff.
Second Schedule.
Form of praecipe for
sale of lands by
Revenue Officer.
Third Schedule.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Income and Business Tax[CAP. 55
[] 75
(6) The bailiff or server of such notice shall write upon it the date when
it is served by him, and shall enter upon a counterfoil of the notice or upon
some other record the date and manner of service and the place where it was
made.
(7) Every person duly served but failing to make such statement as
mentioned in subsection (4) within the time and in the manner prescribed is
liable on summary conviction to a fine not exceeding twenty-five dollars,
unless he proves either that, previous to the notice being served, he had paid
the tax or fine, or that no tax or fine was or is due from him.
73.-(1)When the whole of any land or any house in respect of which a levy
is made, is offered for sale and no bid is made for it equal to or in excess of
the tax, fines, costs and charges thereon, it shall be liable to forfeiture at the
discretion of the Minister.
(2) As a condition precedent to the forfeiture the Chief Collector shall
cause to be served on the defaulter a notice that such land or house is liable
to forfeiture within one month from the date of the service of the notice, if the
amount due be not paid.
(3) When any land or house has been declared by the Minister to be
forfeited it shall vest in the Government of Belize.
(4) The Chief Collector shall forward to the Registrar of the Court for
the purpose of registration a statement in a form to be prescribed by the
Minister, which statement shall contain the particulars of the land or house,
the name of the person in default, the amount due, the date of the abortive
sale, and the date of the service of the notice of liability to forfeiture.
(5) The registration of the statement shall constitute an indefeasible title.
On abortive sale
of realty and
continued
default in
payment
property to vest
in Crown.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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[] 76
74. In all cases of the sale of lands or houses under this Act, the
following shall be the conditions of sale:-
(a) the purchaser buys at his own risk as to the provisions of
the law necessary to authorise the sale having been com-
plied with;
(b) a person who intends to purchase shall be allowed access
to all documents which show that such provisions have been
complied with;
(c) the purchaser shall not require any proof (beyond the
assessment record, and the praecipe with the list of default-
ers’ notices with service) of the identity of the contents,
dimensions, or other particulars of the “property” offered
for sale with that advertised;
(d) the highest bidder for each lot may be the purchaser;
(e) if any dispute arises as to any bidding, the property may
again be put up for sale;
(f) the reserve price will be the amount of the tax, costs, and
charges;
(g) the advance on the bidding may be declared by the Chief
Collector or officer conducting the sale on putting up the
specific lot;
(h) no bid shall be retracted without the consent of the Chief
Collector or the said officer;
(i) immediately after the sale, the purchaser shall pay to the
Chief Collector, or to the officer who conducts the sale, a Conditions of
sale.
11 of 1964.

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Income and Business Tax[CAP. 55
[] 77
deposit of one-fourth of his bid, and the balance within seven
days thereafter;
(j) in default of payment of the deposit, the property shall be
offered for sale immediately and any subsequent bid by the
person who has made default as aforesaid, shall be ignored
or refused;
(k) if the purchaser fails to complete his purchase within seven
days, the deposit shall be forfeited, and the property shall be
re-offered for sale, when any deficiency on the first bid may
be recovered from the first bidder as a debt;
(l) except in special cases to which the Minister may give his
sanction, conveyances for lanes, tenements and heredita-
ments will only be executed on the prescribed form;
(m) conveyances will not be executed until one month has
elapsed from the date of sale, and during this period the
right is reserved for the Minister to cancel the sale.
75.-(1)All sales of any lands or houses charged with the payment of unpaid
income tax shall, if the provisions of this Act have been duly complied with,
operate to confer on the purchaser an indefeasible title thereto, free from all
encumbrances.
(2) All sales of lands or houses other than those previously specified in
this Act shall have the effect of conveying to the purchaser the right, title, and
interest therein of the person who has made default in the payment of tax,
but-
(a) no purchaser shall have, or be capable of granting, any title
to any land, house or goods purchased under the powers of
this Act, if the purchase has been made with intent to defraud
Effect of
execution sales
with regard to
title.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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[] 78
creditors, or as agent or trustee for the taxpayer in default,
or for his wife or family;
(b) any such sale to the taxpayer in default shall be void.
(3) Any person having a charge or debt by way of specialty or other-
wise upon any property of the person named in the assessment record may
pay the tax, fines, costs and expenses properly due under this Act by such
person named as aforesaid, and shall be entitled to add the moneys thus
paid to such charge or debt, and thereupon the increased charge or debt
shall bear the same interest and may be enforced and recovered in the same
manner as the original charge or debt.
76. Where any land or house is sold under this Act, the Chief Collec-
tor shall execute and deliver on completion a conveyance thereof to the
purchaser in the form set out in the Fourth Schedule.
77.-(1)Any surplus moneys arising on any sales under this Act, after
payment of the tax, fines and costs, shall be paid by the Chief Collector to
the owner of the property sold, if known, and if not known, then they shall
be at the disposal of the Minister on the application of any person entitled
for six years from the day of sale, after which they shall be appropriated to
the Consolidated Revenue Fund.
(2) If the Chief Collector has notice that any person other than the
owner of the property sold has a claim to the surplus moneys or any part
thereof either by way of mortgage or other legal encumbrance, the Chief
Collector may send to the said owner, by post, a letter addressed to him at
his last known place of abode stating that the moneys or some specified part
thereof, will be paid to such claimant, mortgagee or encumbrancer, unless
the owner informs the Chief Collector within ten days from the date of the
said letter that he does not admit the said claim.
(3) If no reply is received from the owner within the time specified in
11 of 1964.
Form of convey-
ance.
Fourth Schedule.
Disposal of
surplus proceeds
of sale.
40 of 1963.

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Income and Business Tax[CAP. 55
[] 79
subsection (2) the surplus moneys, or such part thereof as specified in the
said letter, may be paid to the claimant by the Chief Collector.
(4) If the owner denies the claim, the Chief Collector shall pay the
surplus moneys to the Registrar of the Supreme Court, to be placed by the
latter to the credit of an account in court, to abide the settlement by the court
of the question as to what person is entitled to it.
(5) The Chief Collector shall not be held responsible for any payment
made by him under this section.
Claims by Thir d Par ties
78. If any person, other than the person making default, claims that he
is the owner of any goods or lands which are levied upon, as belonging to a
party who is named in the assessment record, such person, or any attorney
on his behalf, may file an affidavit in the Supreme Court-
(a) specifying which of the goods or lands he claims as his
property;
(b) stating full particulars of his title thereto; and
(c) stating the value of the property.
79. If any such person, either at the time of or subsequent to filing the
affidavit, gives security by bond with two sureties (such bonds being hereby
exempted from stamp duty) to the satisfaction of the Registrar of the
Supreme Court in a sum of five hundred dollars, conditioned to secure,
firstly, either the total amount of taxes, fines, costs, and expenses unpaid or
such part thereof as may be equivalent to the value of the property claimed,
and, secondly, all costs of the legal proceedings incidental to the trial of the
issue specified in section 81 hereinafter, the Registrar shall notify the Chief
Collector to discontinue his levy upon such of the goods and lands as are
Affidavit by a
person not the
defaulter,
claiming the
property levied
upon.
11 of 1964.
Discontinuance
of levy upon
bond being
given by
claimant, etc.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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[] 80
specified in the affidavit until the determination of the issue.
80.-(1) At any time within seven days after receipt of the notification of the
levy being discontinued the Chief Collector may abandon the levy alto-
gether, and thereupon shall notify the Registrar and the claimant that the levy
is wholly withdrawn and that no further legal proceedings will take place.
(2) If no notice of abandonment is given by the Chief Collector in the
manner provided in subsection (1), the Registrar shall set the matter down
for trial at the next sitting of the Supreme Court held not later than two
weeks subsequent to security being so given in accordance with the
summary procedure of that court.
81. At the hearing, the issues shall be whether or not the claimant
has made out his title to the goods or lands specified in the affidavit, and
whether the value thereof has been correctly stated in the affidavit and, upon
the issues being determined, the Court shall order the bond to be enforced
or cancelled, as the case may be.
82. Throughout the proceedings in the case of the goods being claimed
as aforesaid, the bailiff by whom the levy was made, or, in the case of lands
being claimed, the Chief Collector shall be the defendant, and all steps may
be taken and things done as in ordinary cases before the said court, but the
defendant shall not be ordered to pay any costs unless the court is of
opinion that he has been guilty of wilful neglect or misconduct.
83. No summons, process or other document issued by or for any
person acting under this Act shall be subject to stamp duty.
84. The burden of proof of exemption from or abatement of the tax
levied under this Act shall lie on the party claiming the exemption or abate-
ment.
Abandonment of
levy or setting
down for trial.
Issue at trial.
Procedure to be
same as in
ordinary cases.
Exemption from
stamp duties.
Onus probandi.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Income and Business Tax[CAP. 55
[] 81
85. Any prosecution instituted against any person for the commission of
any offence against this Act shall be commenced within six years from the
time of the offence committed and not afterwards.
General
86. Any person who is guilty of an offence against this Act for which no
punishment is herein otherwise specified shall be liable on summary convic-
tion to a fine not exceeding five hundred dollars and in default of payment to
imprisonment for a term not exceeding six months.
87. Any person who has failed to make a return as and when required
by paragraph (1) of rule 4 or by paragraph (2) of rule 14 of the Rules Gov-
erning Payment of Income Tax, or by section 34 of this Act is liable to a
penalty of five dollars a day for each day of default so long as such penalty
shall not exceed one thousand dollars.
88.-(1)Any person who, for the purpose of obtaining any deduction,
rebate, reduction or repayment in respect of tax for himself or for any other
person, or who in any return, account or particulars made or furnished with
reference to tax, knowingly makes any false statement or false representa-
tions shall be liable on conviction to a fine not exceeding five hundred dollars
and to forfeit treble the amount of the tax with which be ought to be charged
under this Act, or to imprisonment for a term not exceeding six months.
(2) Any person who aids, abets, assists, counsels, incites or induces
another person-
(a)to make or deliver any false return or statement under this
Act; or
(b)to keep or prepare any false accounts or particulars
Prosecutions to
commence within
six years.
Penalties for
offences.
Penalty.
S.I. 52 of 1970.
3 of 1971.
False statements
and returns.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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[] 82
concerning any income on which tax is payable under this
Act,
is liable on summary conviction to a fine not exceeding five hundred dollars
or imprisonment for a term not exceeding six months.
89. This Act shall not affect any criminal proceedings under any other
Act or law.
90. Any person who obstructs or impedes or insults or molests the
Commissioner, Chief Collector or other officer lawfully authorised by this
Act or any amendment thereto in the discharge of his duties or in his official
capacity or in the exercise of his powers is guilty of an offence.
91.-(1)Any person who reduces his income by the transfer or assignment
of any real or personal, movable or immovable property to any member of
the family of such person shall nevertheless be liable to be taxed as if such
transfer or assignment had not been made, unless the Commissioner is
satisfied that such transfer or assignment was not made for the purpose of
evading the taxes imposed under this Act or any part thereof.
(2) Where a person transfers property in trust and provides that the
corpus of the trust shall revert either to the donor or to such person as he
may determine at a future date, or when a trust provides that during the
lifetime of the donor no disposition or other dealing with the trust property
shall be made without the consent, written or otherwise, of the donor, such
person shall nevertheless be liable to be taxed on the income derived from
the property transferred in trust, or from property substituted therefor, as if
such transfer had not been made.
(3) Where the Commissioner is of the opinion that any transaction
which reduces or would reduce the amount of tax payable by any person is
artificial or fictitious or that effect has not, in fact, been given to any disposi-
tion, the Commissioner may disregard the transaction or disposition, and the
Saving for criminal
proceedings.
Impeding or
obstructing Com-
missioner or
Officers.
Transfer of
property to evade
taxation.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Income and Business Tax[CAP. 55
[] 83
persons concerned shall be assessable accordingly.
(4) Nothing in this section shall be deemed to prevent a decision of the
Commissioner made in the exercise of any discretion given to him by this
section, from being tested on review, objection or appeal against an assess-
ment.
(5) In this section “disposition” includes any trust, grant, covenant,
agreement or arrangement.
(6) Where it appears to the Commissioner that with a view to the
avoidance or reduction of tax, a company controlled by not more than five
persons has not distributed to its shareholders, in such manner as to render
the amount distributed liable to taxation in the hands of the shareholders,
profits made in any period ending after the 31st December, 1943, which
could be distributed without detriment to the company’s existing business, the
Commissioner, by notice in writing to the company, may direct that, for the
purposes of assessment to income taxes and surtaxes, such profits for the
period specified in the notice be deemed to be the income of the members,
and the amount thereof shall be apportioned among the members in accor-
dance with the respective interests of the members, and taxes shall be
assessed and charged on the members in respect of the sum so apportioned
as if this distribution had in fact been carried out.
(7) Where it appears to the Commissioner that with a view to the
avoidance or reduction of tax property has been sold at a price below that
which it would ordinarily be expected to fetch in a transaction between an
independent buyer and an independent seller, the income, profits or losses
arising from such sale shall be computed by reference to the price which the
Commissioner considers appropriate in all the circumstances of the sale.
(8) For the purposes of subsection (7), the expressions “sold” or “sale”
include the expressions grant, hire, lease, assignment, transfer or other disposi-
tion of any right or interest in property.
12 of 1965.
12 of 1965.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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92.-(1)Any information or complaint under this Act or rules made there-
under may be laid or made by an officer of the Income Tax Department, by
a member of the Belize Police Department, or by any person authorized in
writing by the Commissioner.
(2) Where provision is made for sending by post a request for infor-
mation, a notice or demand or notice of assessment or a requirement of the
Commissioner, an affidavit of an officer of the Income Tax Department
setting out that he has charge of the appropriate records, that he has knowl-
edge of the facts in the particular case, that such a request, notice, demand
or requirement was sent by registered letter on a named day to the person
to whom it was addressed (indicating such address) and that he identifies as
exhibits attached to the affidavit the post office certificate of registration of
the letter or a true copy of the relevant portion thereof, and a true copy of
the request, notice, demand, notice of assessment or requirement, shall be
received as prima facie evidence of the posting and of the request, notice,
demand, notice of assessment, or requirement.
(3) Where provision is made for personal service of the request for
information, notice, demand, notice of assessment or requirement, an
affidavit of an officer of the Income Tax Department setting out that he has
charge of the appropriate records, that he has knowledge of the facts in the
particular case, that such a request, notice, demand, notice of assessment or
requirement was served personally on a named day on the person to whom
it was directed or on a person pursuant to section 58 (5) or (6), and that he
identifies as an exhibit attached to the affidavit a true copy of the request,
notice, demand, notice of assessment or requirement, shall be received as
prima facie evidence of the personal service of such document.
(4) Where a person has been required to make a return, statement, or
answer, an affidavit of an officer of the Income Tax Department setting out
that he has charge of the appropriate records and that after a careful exami-
nation and search of the records he has been unable to find in a given case
that the return, statement or answer, as the case may be, has been made by Procedure and
evidence.
3 of 1971.
42 of 1999.

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such person, shall be received as prima facie evidence that in such case the
return, statement or answer, as the case may be, was not received by the
Income Tax Department or any officer thereof.
(5) Where a person has been required to make a return, statement or
answer, an affidavit of an officer of the Income Tax Department setting out
that he has charge of the appropriate records and that after careful examina-
tion of such records he has found that the return, statement, or answer was
filed on a particular day, shall be received as prima facie evidence that it was
filed that day and not prior thereto.
(6) With the leave of the court an affidavit of an officer of the Income
Tax Department, setting out that he has charge of the appropriate records
and that a document annexed thereto is a document or true copy of a docu-
ment made by or on behalf of the Commissioner, or some person exercising
the powers of the Commissioner or by or on behalf of a taxpayer, shall be
admissible in evidence together with the document so annexed which shall be
conclusive evidence of the contents of the original document.
(7) Where evidence is offered under this section by an affidavit from
which it appears that the person making the affidavit is an officer of the
Income Tax Department, it shall not be necessary to prove his signature or
that he is such an officer nor shall it be necessary to prove the signature or
official character of the person before whom the affidavit was sworn.
(8) Every document purporting to be a direction, demand, notice,
certificate, requirement, assessment or other document purported to have
been executed under or in the course of the administration or enforcement of
this Act over the name of the Commissioner or an officer authorized to
exercise the powers of the Commissioner under this Act shall be prima facie
evidence that the document was signed, made and issued by the Commis-
sioner or such officer.
(9) In any prosecution, an affidavit of an officer of the Income Tax

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Department setting out that he has charge of the appropriate records and
that an examination of the records show that an amount required to be
remitted to the Commissioner has not on a specified date been received by
the Commissioner shall be received as prima facie evidence of the state-
ments contained therein.
93.-(1) Notwithstanding any rule of law or practice to the contrary, it shall
be lawful for the Commissioner to authorise any person to act as an agent
for the purpose of detecting corruption or the evasion of income or business
tax imposed by this Act or the commission of any other related offence, and
the evidence of such a person shall be valid and effectual for all purposes
and shall be receivable in all courts in Belize.
(2) Any such agent as aforesaid shall not be treated as an accomplice
for the purpose of the law on corroboration.
(3) The fact that a crime has been induced by the activities of any such
agent shall not be treated as a mitigating factor on sentence by any court.
94.-(1)The Minister may make rules generally for carrying out the provi-
sions of this Act, and may, in particular, by those rules provide-
(a)for the form of returns, claims, statements and notices under
this Act;
(b)for the deduction and payment of tax at the source in
respect of emoluments and pensions payable out of the
revenue of Belize;
(c)for the payment of income tax by monthly or other
instalments;
(d)for the deduction and payment of tax from emoluments and
pensions payable by an employer in Belize to an employee;
Use of agents to
detect crime.
7 of 1999.
7 of 1999.
Rules.

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and
(e) for any such matters as are authorised by this Act to be
prescribed.
(2) If any person fails to comply with or contravenes a rule made under
this Act he is guilty of an offence.
(3) All rules made under this Act shall be judicially noticed.
(4) For the purposes of this section and any rules made thereunder-
“emoluments” includes all salaries, fees, wages, commissions, or profits or
gains whatever arising from an office or employment, and references to
payments of emoluments include references to payments on account of
emoluments;
“employer” means a person liable to pay emoluments whether on his own
account or on behalf of another person and in relation to an officer, means
the person from whom the officer receives his emoluments;
“employee” means any person in receipt of emoluments, and includes an
officer;
“office” means the position of an individual entitling him to a fixed or
ascertainable stipend or remuneration and includes a judicial office, the office
of a Minister of the Government, the office of a member of the Senate or
House of Representatives of Belize and any other office the incumbent of
which is elected by popular vote or is elected or appointed in a representa-
tive capacity, and also includes the position of a company director;
“officer” means an individual holding such an office.
16 of 1994.
19 of 1970.

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95.-(1)The Minister may remit the whole or any part of the income tax
payable by any person if he is satisfied that it would be just and equitable to
do so.
(2) Notices of such remission shall be published in the Gazette.
Collection of T ax W ithholding
96.-(1)Subject to subsection (2), every employer who fails to deduct and
remit an amount from the emoluments of an employee as and when required
by rules made under this Act shall be liable to pay the Commissioner the
whole amount that should have been deducted and remitted from the time
prescribed for deducting the same.
(2) An employer who has failed to deduct an amount as prescribed
may recover that amount from subsequent payments of emoluments made to
the employee provided that he does so within twelve months after the
making of the payment from which the prescribed amount was not deducted
and does not deduct from each payment of emoluments during this twelve
months period more than twice the amount of the deduction prescribed for
the payment being then made.
(3) Every employer who fails to remit to the Commissioner the total
amount that he was required to remit at the time when he was required to
do so shall be liable to a penalty of 10 per cent of the amount that he failed
to remit or ten dollars, whichever is the greater, and in addition shall be
liable to pay on the amount not remitted the surcharge prescribed by section
55.
97.-(1)The Commissioner may assess an employer for an amount payable
by him by rules made under this Act or may re-assess such employer or
make additional assessments as the circumstances require and the expres-
sion “assessment” when used with reference to any action so taken by the
Commissioner under this section includes any re-assessment or additional
Minister may remit
tax.
40 of 1963.
Failure to deduct
and remit.
19 of 1970.
Assessment for
failure to deduct
or remit.
19 of 1970.

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assessment.
(2) After assessing an employer under subsection (1) for an amount
payable by him the Commissioner shall cause a notice of assessment to be
served personally or sent by registered post to the employer, and the assess-
ment, subject to being varied or discharged on objection under section 42 or
on appeal under section 43, shall be deemed to be valid and binding and the
employer shall be deemed to be in default and shall be liable to pay to the
Commissioner the amount thereof forthwith.
PA RT I I
Income Tax on Profits arising from Petroleum Operations
98. For the purposes of this Part-
(1) “Affiliated Company” shall mean any entity, directly or indirectly
effectively controlling or controlled by, or under direct or indirect effective
common control, with a specified entity. For the purposes of this definition,
“Control”, when used with respect to any specified entity, means the power
to direct, administer and dictate policies of such entity (it being understood
and agreed that it is not necessary to own directly or indirectly fifty percent
(50%) or more of such entity’s voting securities to have effective control over
such entity, but ownership, direct or indirect, of fifty percent (50%) or more
of such entity’s voting securities shall automatically indicate effective control),
and the terms “controlling” and “controlled” have meanings corresponding to
the foregoing.
(2) “Contractor” shall mean a person who has entered into a contract
with the Government under the Petroleum Act.
(3) “Crude Oil” shall mean Petroleum which is in liquid state at the well
head or gas/oil separator or which is extracted from Natural Gas, including
distillate and condensate.
Definitions.
9 of 1991.

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(4) “Delivery Point” shall mean the FOB point of export in Belize or
such other point which may be agreed by the Government and the
Contractor.
(5) “Gross Revenues” shall mean the sums of all proceeds of sales and
the monetary equivalent of the value of other dispositions of Petroleum
produced and saved and not used in Petroleum Operations and any other
proceeds derived from Petroleum Operations.
(6) “Initial Commercial Production” shall mean the date on which the
first regular shipment of Crude oil or Natural Gas, or both, is made under a
program of regular production and sale.
(7) “Natural Gas” shall mean all Petroleum which at atmospheric
conditions of temperature and pressure is in a gaseous phase, including wet
mineral gas, dry mineral gas, wet gas, and residue gas remaining after the
extraction, processing or separation of liquid Petroleum from wet gas, as
well as non Petroleum gas or gases produced in association with liquid or
gaseous Petroleum.
(8) “Associated Natural Gas” shall mean natural gas which is
produced in association with Crude Oil.
“Non-Associated Natural Gas” shall mean Natural Gas which is
produced without association with Crude Oil or in association with Crude Oil
which cannot be produced commercially.
(9) “Net Petroleum” shall mean the value of the total quantity of Petro-
leum produced and saved in a given Calendar Year and not used in Petroleum
Operations after deduction of the value of the Royalty in such Calendar Year
and after recovery of Petroleum Operations Expenditures pursuant to a
Contractor’s contract with the Government.
(10)“Petroleum Operations Expenditures” shall mean expenditures made

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in conducting Petroleum Operations hereunder, determined in accordance with
the Sixth Schedule.
(11) “Royalty” shall mean the royalty described in section 31 of the
Petroleum Act.
99. A Contractor carrying on any trade or business which consists of or
includes Petroleum Operations shall keep separate accounts of such Petroleum
Operations, and the Chargeable Income of such Contractor for each Basis
Year shall be computed as if such Petroleum Operations were a separate trade
or business of that Contractor.
100. The Chargeable Income of a Contractor derived from Petroleum
Operations for the applicable Basis Year shall be determined by deducting
from Gross Revenues for such Basis Year-
(i) the value of any Royalty in such Basis Year;
(ii)the value of the Government’s total share of Net
Petroleum in such Basis Year; and
(iii)all allowable Petroleum Operation Expenditures
incurred in such Basis Year. The Tax upon the
Chargeable Income of a Contractor shall be
charged at the tax rate of general application
to all
companies in Belize, and the Contractor shall be
obligated to pay such Tax to the Government for the
Basis Year in question.
101-(1)Petroleum sold to third parties shall be valued at the net realized price
at the Delivery Point.
(2) Crude Oil sold to other than third parties shall be valued as
Sixth Schedule.
CAP. 225.
Separate
accounts for
petroleum
operations.
Assessment of
Chargeable
Income.
Valuation of
Petroleum.

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follows:-
(a)by using the weighted average unit price received from sales
to third parties at the Delivery Point, net of any commissions
and brokerages paid in relation to such third party sales,
during the ninety (90) days preceding such sale, adjusted as
necessary for quality, grade and gravity, and taking into
consideration any special circumstances with respect to such
sales, unless less than fifty percent (50%), by volume, of Crude
Oil sales during such period are made to third parties, in which
case Crude Oil sold to other than third parties shall be valued
in accordance with paragraph (b);
(b)if no third party sales have been made during such period of
time, then (i) on the basis used to value other Crude Oil from
Belize of similar quality, grade and gravity (or, if not similar,
adjusted as necessary for quality, grade and gravity) and
taking into consideration transportation cost differentials and
any special circumstances with respect to sales of such Crude
Oil, or (ii) if there is no other Crude Oil from Belize, on the
basis used to value Crude Oil from other sources in Central
America, Columbia and Venezuela of similar quality, grade
and gravity and taking into consideration transportation cost
differentials and any special circumstances with respect to sales
of such similar Crude Oil.
(3) Natural Gas sold to other than third parties shall be valued by agree-
ment between the Government and the Contractor, provided, however, that
such value shall reflect the following:
(i) the quantity and quality of the Natural Gas;
(ii)the price at which sales of Natural Gas from other

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sources in Belize, if any, are then being made;
(iii)the price at which sales, if any, of Natural Gas imported
into Belize are being made;
(iv) t h e purpose for which the Natural Gas is to be used;
and
(v) the international market price of competing or
alternative fuels of feedstocks.
(4) Third party sales referred to in this section shall mean sales other than
barter sales made by the Contractor to purchasers which are not Affiliated
Companies of the Contractor in arms length transactions and with whom (at the
time the same is made) the Contractor has no contractual interest involving
directly or indirectly any joint interest.
(5) Commissions or brokerages incurred in connection with sales to third
parties, if any, shall not exceed the customary and prevailing rate.
102.-(1) In the event that a Contractor at any time comprises more than one
corporation, individual or entity, in the form of a partnership, joint venture,
unincorporated association or other combination of entities or individuals,
Tax shall in all cases be calculated and assessed on the basis of the Charge-
able Income of each corporation, individual, partner, joint venturer, associate
or other entity comprising the Contractor.
(2) Commencing with the Basis Year in which Initial Commercial
Production first occurs, any allowable deductions for Tax purposes with
respect to Petroleum Operations Expenditures, the Royalty and the
Government’s share of Crude Oil production which remain unrecovered in
any Calendar Year from Gross Revenues shall be treated as an operating loss
and may be carried forward as an allowable deduction to subsequent Basis
Years until fully recovered from Gross Revenues. In the event that an oper-
ating loss remains unrecovered upon the termination of this Agreement, such
Tax accounting
principles.
Carry forward of
losses.

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loss may be carried over and deducted from other revenues of the Contrac-
tor from Petroleum Operations in Belize.
(3) All Books, accounts and records shall be prepared on an accrual
basis. Revenues shall be attributable to the accounting period in which they
are earned, and costs and expenses to the accounting period in which they
are incurred, without the need to distinguish whether cash is received or
disbursed in connection with a particular transaction. Cost and
expenses shall be deemed to have been incurred, in the case of physical
items, in the accounting period when title thereto passes, and in the case of
services, in the accounting period when such services are performed.
(4) Except as may be otherwise agreed in writing between the Gov-
ernment and the Contractor, all transactions giving rise to revenues, costs or
expenses, shall for tax purposes be deemed to have been conducted at
arm’s length or on such a basis as will assure that all such revenues, costs or
expenses will not be higher or lower, as the case may be, than would result
from a transaction conducted at arm’s length on a competitive basis with
third parties.
(5) For each Basis Year, commencing with the Basis Year in which
Initial Commercial Production first occurs, Petroleum Operations Expendi-
tures which shall be deductible for the purpose of the calculation of Tax
Payable shall consist of the sum of-
(1) The current Basis Year’s operating expenditures incurred,
including the current Basis Year’s allowable deductions for
depreciation of capital expenditures determined in
accordance with paragraph 2 of the Sixth Schedule; and
(2) An amount with respect to any operating loss from prior
Basis Years, determined in accordance with subsection (2)
of this section.
Keeping of ac-
counts.
Arm’s length
transactions.
Deductions
allowed in
ascertainment of
Chargeable Tax.
Sixth Schedule.

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103.Subject to the provisions of this Part, Part I shall apply to the
Petroleum Profits of any person.
PART III
Business Tax
104.The provisions of this Part shall apply notwithstanding anything to
the contrary contained in Parts I and II of this Act or in any other law.
105.(1) In this Part, unless the context otherwise requires:-
“business” means any trade, manufacture, adventure or concern in the nature
of trade;
“employment income” means income derived from services provided under a
contract of service or apprenticeship or tenure of office, and includes income
from employment as a consultant where such employment is for more than
60 days in the aggregate in any basis year;
“Public Investment Company” or “PIC” means a company which is desig-
nated as such under Part XI of the International Business Companies Act;
“PIC Group Company” means a company comprised in a PIC Group as that
term is defined in the International Business Companies Act, as amended;
“receipts” means all revenues, whether in cash or in kind, or whether re-
ceived or accrued, of a person or entity carrying on trade or business or
practicing his or its profession or vocation in Belize without any deduction,
and includes:-
(a)rents, royalties, premiums and any other revenue receipts
arising from property; Application of
Part I to
Petroleum
Profits.
19 of 1998.
Part III to over-
ride other
provisions.
Interpretation.
CAP. 270.
CAP. 270.
7 of 1999.

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(b)commissions, royalties and discounts;
(c)dividends, interest including interest from investments,
debentures, bills, bonds and notes:
Provided that in the case of a financial institution licensed under the
Banks and Financial Institutions Act, “interest” shall mean the difference
between the interest earned and the interest paid on deposits as well as the
interest paid on funds borrowed from abroad for on-lending in Belize as
certified by the Central Bank of Belize;
(d)winnings from lotteries;
(e)management fees, rental of equipment and charges for
technical services;
but does not include:-
(i) revenue replacement duty on fuel;
(ii)supply sales by a designated bulk fuel importer to
other bulk fuel supplier;
(iii)excise duty;
(iv)accommodation tax payable under the Hotels and
Tourist Accommodation Act;
(v) sales tax payable to Government;
(vi)funds received as an agent; or
(vii)any payment by a PIC Group Company of :-
CAP. 263.
CAP. 285.

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(a)a dividend or other distribution (whether by way of
distribution of a profit of an income or capital
nature); or
(b)interest or principal on any indebtedness,
to the PIC or to another PIC Group Company;
(viii)absolute and immediate gifts amounting in the
aggregate to five hundred dollars or more, taking
effect in Belize, for sports, religious, charitable,
educational or cultural purposes or for the
improvement of amenities in towns or villages, up to
a maximum of $30,000 per annum, provided that
the Commissioner is satisfied that the gifts were
actually made;
“management fees” means payment for the provision of industrial or commer-
cial advice or for management or technical services or similar services or
facilities;
“professional” means any person or firm or any body of persons (whether
corporate or unincorporate) engaged in a vocation or occupation in Belize
including, but not limited to, the vocations, and occupations listed in the
Eighth Schedule to this Act:
“rental” means payments of any kind received as consideration for the hire of
plant or machinery or equipment of any kind or description, but does not
include payments made under bona fide hire purchase agreements;
“revenue receipts” means any receipts other than receipts of a capital nature;
“tax” means the business tax levied under section 106 of this Act;
7 of 1999.
Eighth Schedule.

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“telecommunication services” means the provision of telephone and other
ancillary or related services;
(2) For the purpose of the definition of the expression “receipts”, the
receipts shall be deemed to have accrued at the time when the goods or
services are supplied or performed irrespective of the fact that payment or
consideration therefor may have been deferred, and in the case of dividends
and interest, the receipts shall be deemed to have accrued at the time when
payment becomes due.
(3) The Minister may from time to time by Order published in the
Gazette amend the Eighth Schedule to this Act.
(4) Where a word or expression used in this Part is not defined herein,
the respective meaning assigned to that word or expression in Part I of this
Act shall mutatis mutandis apply.
106.-(1)Subject to this Part, there shall be levied upon and paid by every
individual, self-employed person, professional, firm, partnership or company
(whether corporate or unincorporate) a tax to be known as “business tax”
at the rates specified in section 107 of this Act, on all receipts as defined in
this Part, whether received in Belize or elsewhere.
(2) For the purposes of this Part, interest paid by the Government, or
by a resident or non-resident of Belize, on debts incurred or money bor-
rowed and used for the purposes of a business or profession carried on in
Belize shall be deemed to accrue in Belize and, as such, shall be subject to
the provisions of this Part.
(3) Subsection (1) above shall not apply to employment income as
defined in this Part.
(4) Where the Commissioner is satisfied that-
Eighth Schedule.
Imposition of
business tax.

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(a)a person or entity liable to pay tax is engaged primarily in
export business or industry and the primary product
originates in Belize; and
(b)the respective incomes of the processor/exporter and the
primary producer arising out of such business or industry
are determined by reference to a price formula or a scheme
for cooperative distribution; and
(c)the business or industry involved is in the nature of
agriculture, food or food processing,
the tax shall be computed by reference to the receipts derived at the comple-
tion of processing and be levied on the processor/exporter accordingly, and
shall not be recoverable from primay producers.
107.-(1)Commencing from July1, 1998 and for each subsequent month the
tax on the receipts shall be levied at the rates set out from time to time in the
Ninth Schedule to this Act.
(2) The National Assembly may at any time by resolution amend the
Ninth Schedule and every such resolution shall, unless it be otherwise ex-
pressed in the resolution and subject to subsection (4) below, take effect
from the passing thereof.
(3) A Bill to validate any such resolution shall be introduced into the
National Assembly at its next practicable sitting after the passing of such
resolution.
(4) In case no Bill is introduced into the National Assembly as pro-
vided in subsection (3) above or on the withdrawal or rejection by the
National Assembly of such Bill, or in case such Bill otherwise fails to become
law, every such resolution shall cease to have effect. Special arrange-
ments for certain
industries and
businesses.
Rates of Tax.
Ninth Schedule.

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(5) In the event of such resolution ceasing to have effect-
(a)a refund of any increased tax collected under the resolution
shall be made to the person who shall have paid the same;
and
(b)when the resolution shall have effected a reduction of the tax
from any person, the Commissioner is hereby authorized to
collect the difference between the tax payable at the time of
reduction and that fixed by the resolution.
108.-(1)There shall be exempt from tax-
(a)receipts from trade, business, profession or vocation of less
than $54,000.00 per annum;
(b)rental receipts of less than one thousand six hundred and
fifty dollars per month where rents form the only source of
livelihood of the individual, or where receipts from rents and
any other source do not in the aggregate exceed one
thousand six hundred and fifty dollars per month;
(c)winnings from Boledo and Jackpot Lottery;
(d)any lottery where the winnings is less than one thousand
five hundred dollars;
(e)interest from any debentures, treasury bills, treasury notes
or bonds issued by or under the authority of the Govern-
ment of Belize;
(f)receipts of any local authority, statutory board or corpora-
tion or friendly society, or credit union or ecclesiastical,
charitable or educational institution of a public character in
Exemptions from
tax.

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so far as such receipts are not derived from a trade or
business carried on by any of these entities;
(g)interest on savings paid to any person provided that in the
case of any person other than an employed person, the
investment of funds does not constitute the normal trading
activities of such person;
(h)earnings from employment which are already subject to
income tax under Parts I and II of this Act;
(i)receipts of Belize Electric Company Limited and its
successors and permitted assigns as provided in the
Mollejon Hydroelectric Project (Exemptions from Taxes
and Duties) Act;
(j)receipts of an Export Processing Zone Business in
accordance with section 12 of the Export Processing Zone
Act.
(2) The Minister, may on application made to him and on the recom-
mendations of the Revenue Advisory Board, by Order published in the
Gazette, exempt from the payment of tax a newly-established business or
industry during the first two years of its operation if in his opinion it is neces-
sary to do so to alleviate hardship or financial difficulty:
Provided that in the case of a person or entity involved in the
production of citrus or other long-term crops where the date of production is
longer than two years from the start of the operation, the Minister may, acting
as aforesaid, exempt such person or entity from the payment of tax for a
maximum period of five years.
7 of 1999.
CAP. 59.
7 of 1999.
CAP. 280.

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109.-(1) Every person or entity who is liable to be taxed under this Part
shall file a return of total receipts by the 15
th day following the end of every
month, or at such other times as may be specified, in a form prescribed by
the Commissioner and accompanied by payment of the estimated tax due
for that period:
Provided that if receipts are solely from rents, royalties, premiums
or other revenue receipts arising from real property, the returns shall be
made half-yearly:
Provided further that if any such person or entity ceases to carry
on business or to practise a profession, he or it shall file a return within
seven days after the date of such cessation.
Provided further that in the case of a financial institution licensed
under the Banks and Financial Institutions Act, the returns shall be made
quarterly.
(2) Whoever fails to file a return required under subsection (1) of this
section commits an offence and shall be liable on summary conviction to a
fine not exceeding ten thousand dollars and in default of payment of fine, to
imprisonment for a term not exceeding two years.
(3) Without prejudice to subsection (2) above, every person who fails
to file a return and pay the tax due, within the prescribed time, shall be liable
to pay a penalty of ten percent of the amount due or assessed for each
month or part of a month in which the return was not delivered continuing
for a period of twenty four months, and in addition, shall be liable to pay
interest at the rate of one and a half per centum per month.
110.-(1)Where a return has been delivered under this Part, the
Commissioner may:-
(a)accept the return and make an assessment;
Duty to make
returns and pay
tax.
CAP. 263.
7 of 1999.
Commissioner to
make assessments.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Income and Business Tax[CAP. 55
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(b)refuse to accept the return and determine to the best of his
judgment the amount of tax payable and assess accordingly.
(2) Where a return has not been delivered, the Commissioner shall use
his best judgment to determine the proper amount of tax due and make an
assessment accordingly.
(3) The Commissioner may by notice in writing require any person or
entity to furnish, within a specified time, a return of receipts and such par-
ticulars as may be required for the purposes of this Part to enable him to
ascertain the receipts of such person or entity and, in particular, may require
any person to produce all books, bank accounts, statements or other docu-
ments in his custody or under his control relating to the business.
(4) Every person or entity, whether or not such person or entity is liable
to pay tax shall, if required by the Commissioner by notice in writing to make
and deliver a return of his or its receipts, make and deliver such return to the
Commissioner within ten days of the service of such notice.
(5) The tax assessed under this section is payable to the Commissioner
by the person or entity assessed as a debt due and payable without further
demand notwithstanding any review or appeal made under this Act and such
tax or part thereof shall be refunded if the review or appeal is determined in
favour of the person or entity.
111.-(1)Where it appears to the Commissioner that any person or entity
liable to pay tax has not been assessed or has been assessed at a lower
amount than that which ought to have been charged, the Commissioner may,
at any time within the year of assessment or within six years after the expira-
tion thereof, assess such person or entity at such additional amount as
according to his judgment ought to have been charged, and the provisions of
this Act as to notice of assessment, appeal and other proceedings shall apply
to such assessment or additional assessment and to the tax charged
thereunder.
Additional
assessments.

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(2) The Commissioner may, if satisfied that the act of omission or
commission amounts to fraud or contrivance, or gross and willful neglect on
the part of the person or entity assessed, or to be assessed, charge such
person or entity in respect of such additional tax and penalty an amount
equal to double the amount of the tax and penalty payable on the excess.
(3) Where it comes to the notice of the Commissioner that a person or
entity has not reported or disclosed any receipts which ought to have been
reported or disclosed, such unreported receipts shall, notwithstanding the
rates specified in the Ninth Schedule to this Act, be taxed at the rate of 50%
of such receipts, in addition to any other penalties leviable under this Act or
regulations made thereunder.
(4) Where a person dies and such person would but for his death
have been chargeable to tax, the personal representatives of such person
shall, to the extent of the estate of the deceased person, be liable to and
charged with the payment of the tax which such person would have been
chargeable, and shall be answerable for doing all such acts, matters and
things as such person if he were alive would be liable to do under this Act.
(5) The provisions relating to assessments, review, objections, ap-
peals, collections and the recovery of income tax contained in Part I of this
Act shall apply mutatis mutandis to assessments, review, objections,
appeal, collections and the recovery of tax under this Part.
112.-(1)There shall be levied on all gross contract payments a withholding
tax at the rate of three per centum of such payments.
(2) The amount levied under subsection (1) above shall operate as a
credit against the tax due from the contractor.
(3) For the purpose of this section:-
“contract” means a contract awarded to or to be performed by a self-
Ninth Schedule.
Withholding tax
on gross contract
payments.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Income and Business Tax[CAP. 55
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employed person, professional or entity for the carrying out of works or
services, or for the supply of labour or materials, or for such other works or
services as the Minister may by Order published in the Gazette prescribe;
“gross contract payment” means the total contract price without any deduc-
tion whatsoever.
(4) Where the gross contract payment is less than three thousand
dollars the provisions of this section shall not apply.
(5) Every person who makes or is liable to make any gross contract
payment to any person, professional or entity shall deduct therefrom the
amount specified under subsection (1) of this section and shall forthwith
render an account and remit the amount so deducted to the Commissioner,
and every such sum shall be a debt owing from him to the Government and
shall be recoverable as such.
(6) Whoever fails or neglects to withhold the amount payable under this
section shall, without prejudice to any other remedy available to the Commis-
sioner, be guilty of an offence and shall be liable on summary conviction to a
fine not exceeding one thousand dollars and in default of payment of the fine
to imprisonment for a term not exceeding six months.
113.-(1)Where any person or entity pays any winnings or prize from or in
respect of a lottery or other similar activity, he or it shall, before paying any
such winnings or prize, deduct therefrom tax at the rate of fifteen percent of
such winnings or prize, and shall forthwith pay over to the Commissioner the
amount of tax so deducted, and every such amount shall be a debt owing
from him to the Government and shall be recoverable as such.
(2) Every company which pays dividend shall before making such
payment deduct therefrom tax at the rate specified in the Ninth Schedule and
shall within seven days render an account and remit the amount so deducted
to the Commissioner and every such amount shall be a debt owing from the
Collection of tax
on winnings
from lottery, tax
on interest on
time deposits,
dividends or
management
fees, etc.
Ninth Schedule.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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[] 106
company to the Government and shall be recoverable as such.
(3) Every person who pays any management fees, rental of plant or
equipment, or charges for technical services and insurance premium to a
non-resident shall deduct therefrom tax at the rate of twenty-five percent of
such payment and shall forthwith render an account and remit the tax so
deducted to the Commissioner and every such amount shall be a debt owing
from him to the Government and shall be recoverable as such.
(4) Every person who pays interest on loans to a non-resident shall
deduct therefrom tax at the rate of fifteen percent of such payment and shall
forthwith render an account and remit the tax so deducted to the Commis-
sioner and every such amount shall be a debt owing from him to the Gov-
ernment and shall be recoverable as such.
Provided that the tax shall not be deducted if-
(a)interest is paid on capital used in the development industries
or projects specified by the Minister by Order published in
the Gazette; and
(b)the Minister is satisfied with the ratio of paid up share
capital to loan capital in such industries or projects; and
(c)tax is not chargeable on such interest payments in the
country of residence of the person to whom such interest is
paid, provided that the Minister may waive this requirement
if he is satisfied that the loan capital could not be reasonably
procured in Belize:
Provided further that where there is a difference or dispute as to
whether tax is deductible under this section, the decision of the Minister
thereon shall be final.
7 of 1999.
7 of 1999.
7 of 1999.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Income and Business Tax[CAP. 55
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(5) Whoever fails or neglects to deduct the amount or to render an
account or to pay the amount deducted to the Commissioner as provided in
subsections(1), (2), (3) and (4) above shall, without prejudice to any other
remedy available to the Commissioner, be guilty of an offence and shall be
liable on summary conviction to a fine not exceeding one thousand dollars
and in default of payment of fine to imprisonment for a term not exceeding six
months.
(6) In the case of dividends or interest paid by a PIC Group Company
to another PIC Group Company or to the PIC itself, the provisions of
subsections (2) and (4) of this section shall not apply.
114.-(1)Where the Commissioner is satisfied that tax has been paid on
receipts which turn out to be bad debts, he may allow a reduction in the
receipts in respect of the current period to the extent of such bad debts:
Provided that if such bad debt is subsequently recovered the same
shall be added to the receipts for the period in which such debt is recovered.
(2) Every person or entity who proves to the satisfaction of the Com-
missioner that he has paid tax in excess of the amount which he or it is
required to pay under this Part, having regard to the exemptions contained in
paragraphs (a) and (b) of subsection (1) of section 108, shall be entitled to
have the excess amount so paid refunded.
115. A person who has brought forward losses as agreed with the
Commissioner during any basis year may be allowed to set off the tax credit
derived from such loss against the business tax due and payable in the
subsequent years, provided that the set off of such tax credit does not reduce
the business tax payable by such person in any tax period by more than
20%.
116. Every person or entity who for the purpose of evading the payment
of tax by himself or itself or by any other person or entity, knowingly makes
Refund of excess
tax.
7 of 1999.
Carry forward of
losses.
7 of 1999.
Penalty for
evasions.
19 of 1998.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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any false statement or false representation shall be liable on summary
conviction to a fine not exceeding ten thousand dollars or to imprisonment
for a term not exceeding twelve months.
117. Every person or entity who purchases an entity or business shall
first ensure that all taxes due from such entity or business under this Part
have been paid as evidenced by a certificate issued by the Commissioner,
and in the event of his or its failure or neglect to obtain such certificate the
purchaser shall be liable to pay to the Commissioner all arrears of tax due
from such entity or business.
118. Every person on entity who contravenes any provision of this Part
for which no specific penalty is provided commits an offence and is liable on
summary conviction to a fine not exceeding one thousand dollars or to
imprisonment for a term not exceeding six months, or to both such fine and
term of imprisonment.
119.-(1)The Minister may make regulations for the better carrying out of
the provisions of this Part and for prescribing anything that needs to be
prescribed, including any special provisions for the administration and
collection of tax in any particular business or industry.
(2) All regulations made by the Minister under this Part shall be laid
before the National Assembly as soon as may be after the making thereof
and shall be subject to negative resolution.
120.The following provisions shall have effect for the basis year 1998
in respect of self-employed persons, companies and other entities who
remain liable to pay income tax under section 5 (a) of this Act up to the
period ending 30 June, 1998:-
(a)in section 2, the “year of assessment” shall mean the six
month period from 1st January to 30th June, 1998;
Liability of pur-
chaser of business
or entity to pay
arrears of tax.
19 of 1998.
General penalty.
Regulations.
Transitional
provisions.

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Income and Business Tax[CAP. 55
[] 109
(b)in section 12, subsection (1)(a)(ii), the words “two
thousand dollars” [as inserted by Act No. 3 of 1992] shall
be read as “one thousand dollars”;
(c)in section 12, subsection (1)(b)(ii), the words “seven
hundred and fifty dollars” [as inserted by Act No. 3 of
1992] shall be read as “three hundred and seventy-five
dollars”;
(d)in section 12, subsection (1)(j), [inserted by Act No. 3
of 1992] the words “one thousand dollars” shall be read as
“five hundred dollars”;
(e)in section 17 (1) [inserted by Act No. 16 of 1994], the
figures “$25,000.00”, “$10,400.00” and “$8,000.00” shall
be read as “$12,500.00”, “$5,200.00” and “$4,000.00”
respectively.
121.-(1) In the case of a company enjoying, as of 1
st July, 1998 1 , an income
tax concession (wholly or partially) under the Fiscal Incentives Act, the
Minister may, on application made by the company and by Order published
in the Gazette, grant a reduction not exceeding fifty percent of the business
tax payable by such company for the remaining period of its tax concession:
Provided that the Minister may waive the whole or part of business
tax payable by such company if he is satisfied that it is necessary to do so to
alleviate hardship or financial difficulty.
(2) The abolition of corporate income tax effected by the Income
Tax (Amendment) Act, 1998, did not affect the liability of such company to
1This provision was added by Act 19 of 1998, which came into force on 1st July, 1998.Provisional
arrangements for
companies
enjoying a tax
holiday.
CAP. 54.
7 of 1999.
19 of 1998.
Commencement.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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[] 110
pay the tax before the commencement of the Act, and any tax arrears or tax
due or outstanding at the commencement may be collected, and assess-
ments therefor may be issued, as if the amendment of corporate income tax
had never been made.
1
1 This provision was added by Act 19 of 1998 which came into force on 1st July, 1998.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Income and Business Tax[CAP. 55
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FIRST SCHEDULE
[Section 68] Warrant to levy.
Under the Income and Business Tax Act,
Chapter 55 of the Revised Edition, 2000
Belize
By Chief Income Tax Collector of the
Country of Belize.
a bailiff appointed by the said
TO
Chief Income Tax Collector in this behalf.
WHEREAS the several persons named in the List attached to this Warrant are
respectively liable in respect of income tax to pay the several amounts set opposite
their names respectively in such List:
AND WHEREAS default has been made in payment of the same: YOU are
therefore hereby enjoined and required to make demand of the several sums mentioned
in the said List from the persons liable therefor or on the premises charged with the
assessment, as the case may require, and upon payment thereof, to give acquittances
under your hand unto the several persons who shall pay the same; and if any sum or
sums remain unpaid after demand duly made by you then you are hereby enjoined and
required to levy upon each and every of the persons named in the List such sums of
money as shall be sufficient to pay the amount set opposite to the names of such
persons in the said List together with the cost attending any levy and any sale thereon
or any and all other proceedings consequent thereon. And of your proceedings herein
you are forthwith to make your Return to me or to the Revenue Officer of
GIVEN under my hand at Belize City, Belize, the day of , 20
………………………………Chief Income Tax Collector

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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SECOND SCHEDULE
[Section 71(3)] Praecipe to levy by sale of lands or houses.
Under the Income and Business Tax Act,
Chapter 55 of the Revised Edition, 2000
BELIZE
By Chief Income Tax Collector of
BELIZE
TOthe Sub-Treasurer (or) Revenue
Officer in charge of the District.
WHEREAS the lands or houses of the several persons named in the List to this
Warrant attached are respectively liable under for the several amounts set opposite
their respective names: AND WHEREAS the lands or houses named in the said list
are likewise respectively liable for the amount aforesaid whether or not the persons
named are in possession thereof:
AND WHEREAS default has been made in payment of the said amounts: YOU are
therefore hereby enjoined and required to levy upon and sell the lands of which the
several persons named in the said list are possessed, or a sufficient part thereof, to
satisfy the amounts set opposite their respective names as aforesaid together with the
costs attending any such levy and sale and all other proceedings consequent
thereon.
AND in default of satisfaction thereby, then, if the persons named are not now in
possession of the lands or houses named in the said List, you are hereby enjoined
and required to levy upon the lands or houses last mentioned. And of your proceed-
ings herein you are to make Returns to me at the end of every calendar month
commencing from the date hereof until your final Return which you are to make to me
on or before the thirtieth day of April next.
GIVEN under my hand at Belize City, Belize, the day of 20
……………………………………
Chief Income Tax Collector.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Income and Business Tax[CAP. 55
[] 113
THIRD SCHEDULE
[Section 72] Under the Income and Business Tax Act,
Chapter 55 of the Revised Edition, 2000
TAKE NOTICE that you are hereby required to fill in the following form with the
statements and information thereby required, to sign the same and to deliver it within
seven days from the date of the service thereof to the Officer in charge of the Revenue
Office of the District in which you live.
AND FURTHER TAKE NOTICE that in default of your delivering such form duly
filled in and signed as aforesaid, you will be liable to a fine not exceeding twenty-five
dollars.
FORM
Do you admit that you owe $ ……………………………………………………….for Income
Tax and $…………………………………………….for fines in respect of …………………..?
If the whole of the above-mentioned amount is not owing by you, state how much is
owing by you.
If the above-mentioned amount or any part thereof is not owing by you, but is owing
by some other person, state the name of that person.
Have you any right, title or interest in the following properties? If you have, state the
nature of your interest therein.
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
State any reason you may have for claiming that your property should not be sold to
satisfy the amount due by you.
DATED this day of 20
TO Chief Income Tax Collector.
Served by me on the day of 20
Bailiff or Server

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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FOURTH SCHEDULE
[Section 76] Conveyance
THIS INDENTURE made theday of 20
,between the Chief Income
Tax Collector of the country of Belize (hereinafter called “the Chief Collec-
tor”) of the one part and (hereinafter called “the Grantee”)
of the other part:
WITNESSETH that in consideration of the sum of
paid by the Grantee to the Government of Belize (the receipt whereof is
hereby acknowledged) the Chief Collector doth, pursuant to and in exercise
of the powers in him vested by the laws of Belize relating to Income and
Business Tax, hereby grant to the Grantee ALL THAT
EXCEPTING AND RESERVING to the Crown, out of the grant
hereby intended to be made, all the rights, liberties and benefits in respect of
the said land and every portion thereof reserved to the Crown under and by
virtue of the National Lands Act, Chapter 191 of the Revised Edition,
2000, to hold the said hereditaments unto and to the use of the Grantee in
fee simple.
IN WITNESS whereof the Chief Collector has hereunto set his hand
and seal the day and year above written.
SIGNED, sealed and delivered by the said
L. S.
in the presence of
Chief Income Tax Collector

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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FIFTH SCHEDULE
[Section 12] Arrangement of Paragraphs
1. Years of assessment affected.
2. Interpretation.
3. Owner and meaning of relevant interest.
4. Sale of buildings.
5. Annual allowances.
6. Asset to be in use at end of basis period.
7. Balancing allowances.
8. Balancing charges.
9. Residue.
10. Meaning of “disposed of”.
11. Value of an asset.
12. Apportionment.
13. Part of an asset.
14. Extension of meaning of “in use”.
15. Exclusion of certain expenditure.
16. Application to lessors.
17. Asset used or expenditure incurred partly for the purposes of a
trade or business.
18. Disposal without change of ownership.
19. Application to professions, vocations and employments.
20. Partnerships.
21. Meaning of allowances made.
22. Claims for allowances.
23. Election in double taxation cases.
24. Manner of making allowances and charges.
_________
1. The provisions of this Schedule with respect to the making of allowances
and charges shall have effect for the year of assessment commencing on the
Years of assess-
ment affected.

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1st January 1964, and for each succeeding year of assessment and any
references in this Schedule to a year of assessment do not include any year
of assessment commencing prior to the 1st January 1964, except where
specific reference is made in paragraph 16 to the year of assessment com-
mencing on the 1st January 1963.
2. For the purposes of this Schedule-
“lease” includes an agreement for a lease where the term to be covered by
the lease has begun, any tenancy and any agreement for the letting or hiring
out of an asset, but does not include a mortgage, and the expression “lease-
hold interest” shall be construed accordingly and-
(a)where, with the consent of the lessor, a lessee of any asset
remains in possession thereof after the termination of the
lease without a new lease being granted to him, that lease
shall be deemed for the purposes of this Schedule to
continue so long as he remains in possession as aforesaid;
and
(b)where, on the termination of a lease of any asset, a new
lease of that asset is granted to the lessee this Schedule shall
have effect as if the second lease were a continuation of the
first lease;
“qualifying expenditure” means, subject to the express provisions of this
Schedule, expenditure incurred in a basis year which is-
(a)capital expenditure (in this Schedule called “qualifying plant
expenditure”) incurred on plant, machinery or fixtures;
(b)capital expenditure (in this Schedule called “qualifying
industrial building expenditure”) incurred on the construction
of industrial buildings, structures or works of a permanent
Interpretation.

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Income and Business Tax[CAP. 55
[] 117
nature, other than expenditure which is included in sub-
paragraph (a) of this definition.
For the purposes of this definition where-
(i) expenditure is incurred for the purposes of a trade or
business by a person about to carry on such trade or
business, and
(ii)that expenditure is incurred in respect of an asset
owned by that person,
if that expenditure would have fallen to be treated as qualifying expenditure if
it had been incurred by that person on the first day on which he carries on
that trade or business, that expenditure shall be deemed to be qualifying
expenditure incurred by him on that day;
“trade or business” means a trade or business or that part of a trade or
business the profits of which are assessable under this Act;
“industrial building or structure” means any building or structure in regular
use-
(i) as a mill, factory, mechanical workshop, or other
similar building, or as a structure used in connection
with any such buildings;
(ii) a s a dock, port, wharf, pier, jetty or other similar
building or structure;
(iii) a s a storehouse or for housing any plant and in
either case used wholly and exclusively for or in
connection with either any building or structure
mentioned in provisions (i) or (ii);

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(iv)for the operation of a railway for public use or of a
water, or electricity undertaking for the supply of
water or electricity for public consumption;
(v) for husbandry or the working of a plantation or
forestry enterprise;
(vi) as a dwelling, or building or structure constructed
for occupation by, or for the welfare of, employed
persons whose duties are performed or mainly
performed in the industrial buildings or structures
falling with (i), (ii), (iii), or (iv) or who are engaged
in husbandry or who are working on the land or in a
factory on a plantation or forestry enterprise;
(vii) a s a warehouse, whether refrigerated or not, wholly,
exclusively and regularly in use for the hire of
storage space to the public, and any dwelling
wholly, exclusively and regularly in use by
employees of the owner of such dwelling whose
duties are solely concerned with the running of any
such warehouse;
“qualifying hotel” means a hotel registered under the Hotels and Tourist
Accomodation Act which complies with the following requirements-
(a) it is open for at least four months (one hundred and twenty
days) in the season, which means the seven months from
first September to thirty-first March;
(b) that during the time when it is open in the season-
(1) it has at least ten letting bedrooms;
32 of 1987.
CAP. 285.

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(2) the sleeping accommodation offered at the hotel
consists wholly or mainly of letting bedrooms; and
(3) the services provided for guests normally include the
provision of breakfast and an evening meal, the
making of beds and the cleaning of rooms.
3.-(1)For the purposes of this Schedule, where an asset consists of an
industrial building, structure or works the owner thereof shall be taken to be
the owner of the relevant interest in such building, structure or works.
(2) Subject to this paragraph, in this Schedule, the expression “the
relevant interest” means, in relation to any expenditure incurred on the
construction of an industrial building, structure or works, the interest in such
industrial building, structure or works to which the person who incurred such
expenditure was entitled when he incurred it.
(3) Where, when he incurs qualifying industrial building expenditure on
the construction of an industrial building, structure or works, a person is
entitled to two or more interests therein, and one of those interests is an
interest which is reversionary on all the others, that interest shall be the
relevant interest for the purposes of this Schedule.
4. Where capital expenditure has been incurred on the construction of an
industrial building, structure or works and thereafter the relevant interest
therein is sold, the person who buys that interest shall be deemed, for all the
purposes of this Schedule, to have incurred, on the date when the purchase
price became payable, capital expenditure on the construction thereof equal
to the price paid by him for such interest or to the original cost of construc-
tion whichever is the less:
Provided that, where such relevant interest is sold before the
industrial building, structure or works has been used, the foregoing paragraph
shall have effect with respect to such sale and the original cost of construction
Owner and
meaning of
relevant interests.
Sale of buildings.

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shall be taken to be the amount of the purchase price on such sale:
Provided also that where any such relevant interest is sold more than
once before the industrial building, structure or works is used, the foregoing
proviso shall have effect only in relation to the last of those sales.
5.-(1) Subject to this Schedule, where in his basis year for a year of
assessment the owner of any asset has incurred in respect thereof qualifying
expenditure wholly and exclusively for the purposes of a trade or business
carried on by him, there shall be made to that person for each year of
assessment, in his basis year for which that asset was used for the purposes
of that trade or business, an allowance (in this Schedule called “an annual
allowance”) at the appropriate rate per centum, mentioned in subparagraph
(2), of the residue of such expenditure at the end of the basis year for that
year of assessment:
Provided that where the basis period for any year of assessment is a
period of less than one year any such allowance for that year of assessment
shall be proportionately reduced.
(2) The said rate shall in the case of-
(i) qualifying industrial building expenditure be at the
following rates-
Buildings housing machinery 5%
Reinforced concrete buildings 2½%
Wooden and other buildings 3%
(ii)qualifying hotel building be four per centum;
(iii)qualifying plant expenditure, be such rate per centum as shall
Annual allow-
ances.
32 of 1987.

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be determined by the Commissioner to be just and reasonable
having regard to the working life of the asset and to the
estimated value thereof at the end of such working life.
6. An annual allowance in respect of qualifying expenditure incurred in
respect of any asset shall only be made to a person for a year of assessment
if at the end of his basis period for that year he was the owner of that asset
and it was in use for the purposes of a trade or business carried on by him.
7. Subject to this Schedule, where in his basis period for a year of assess-
ment the owner of an asset, who has incurred in respect thereof qualifying
expenditure wholly and exclusively for the purposes of a trade or business
carried on by him, disposes of that asset an allowance (in this Schedule
called “a balancing allowance”) shall be made to that person for that year of
the excess of the residue of that expenditure, at the date such asset is
disposed of, over the value of that asset at that date:
Provided that a balancing allowance shall only be made in respect
of such asset if immediately prior to its disposal it was in use by such owner
in the trade or business for the purposes of which such qualifying expenditure
was incurred.
8. Subject to this Schedule, where in his basis period for a year of assess-
ment the owner of an asset, who has incurred in respect thereof qualifying
expenditure wholly and exclusively for the purposes of a trade or business
carried on by him, dispose of that asset, a charge (in this Schedule called “a
balancing charge”) shall be made on that person for that year of the excess of
the value of that asset, at the date of its disposal, over the residue of that
expenditure at that date:
Provided that a balancing charge shall only be made in respect of such
asset if immediately prior to its disposal it was in use by such owner in the
trade or business for the purposes of which such qualifying expenditure was
incurred and shall not exceed the total of any allowances made under this
32 of 1987.
Asset to be in use
at end of basis
period.
Balancing allow-
ances.
Balancing
charges.

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Schedule in respect of such asset.
9.-(1)The residue of qualifying expenditure, in respect of any asset, at
any date, shall be taken to be the total qualifying expenditure incurred on or
before that date, by the owner thereof at that date, in respect of that asset,
less the total of any annual allowances made to such owner, in respect of
that asset, before that date.
(2) For the purposes of this paragraph, an annual allowance shall be
deemed to be made at the end of the basis year for the year of assessment
for which any such allowance is made.
10. Subject to any express provision to the contrary, for the purposes
of this Schedule-
(a)an industrial building, structure or works of a
permanent nature is disposed of if any of the
following events occur-
(i) the relevant interest therein is sold; or
(ii)that interest, being a leasehold interest,
comes to an end otherwise than on the
person entitled thereto acquiring the interest
which is reversionary thereon; or
(iii)the industrial building, structure or works of
a permanent nature are demolished or
destroyed or, without being demolished or
destroyed, cease altogether to be used for the
purposes of a trade or business carried on by the
owner thereof;
(b)plant, machinery or fixtures are disposed of if they are sold,
Residue.
Meaning of “dis-
posed of”.

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discarded or cease altogether to be used for the purposes of
a trade or business carried on by the owner thereof.
11.-(1) The value of an asset at the date of its disposal shall be the net
proceeds of the sale thereof or of the relevant interest therein, or, if it was
disposed of without being sold, the amount which, in the opinion of the
Commissioner, such asset or the relevant interest therein, as the case may be,
would have fetched if sold in the open market at that date, less the amount of
any expenses which the owner might reasonably be expected to incur if the
asset were sold.
(2) For the purpose of this paragraph, if an asset is disposed of in such
circumstances that insurance or compensation monies are received by the
owner thereof, the asset or the relevant interest therein, as the case may be,
shall be treated as having been sold and as though the net proceeds of the
insurance or compensation monies were the net proceeds of the sale thereof.
12.-(1)Any reference in this Schedule to the disposal, sale or purchase of
any asset includes a reference to the disposal, sale or purchase of that asset,
as the case may be, together with any other asset, whether or not qualifying
expenditure has been incurred on such last-mentioned asset, and, where an
asset is disposed of, sold or purchased together with another asset, so much
of the value of the assets as, on a just apportionment, is properly attributable
to the first-mentioned asset shall, for the purposes of this Schedule, be
deemed to be the value of or the price paid for that asset, as the case may
be.
(2) For the purposes of this sub-paragraph, all the assets which are
purchased or disposed of in pursuance of one bargain shall be deemed to be
purchased or disposed of together, notwithstanding that separate prices are
or purport to be agreed for each of those assets or that there are or purport
to be separate purchases or disposals of those assets.
(3) Sub-paragraph (1) shall apply, with any necessary modifications, to
Value of an asset.
Apportionment.

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the sale or purchase of the relevant interest in any asset together with any
other asset or relevant interest in any other asset.
13. Any reference in this Schedule to any asset shall be construed
whenever necessary as including a reference to a part of any asset (including
an undivided part of that asset in the case of joint interests therein) and when
so construed any necessary apportionment shall be made as may, in the
opinion of the Commissioner, be just and reasonable.
14.-(1)For the purposes of this Schedule, an asset shall be deemed to be
in use during a period of temporary disuse.
(2) For the purposes of paragraphs 5 and 6-
(a) an asset in respect of which qualifying expenditure has been
incurred by the owner thereof for the purposes of a trade or
business carried on by him shall be deemed to be in use, for
the purposes of that trade or business, between the dates
hereinafter mentioned, where the Commissioner is of the
opinion that the first use to which the asset will be put by the
person incurring such expenditure will be for the purposes
of that trade or business;
(b) the said dates shall be taken to be the date on which such
expenditure was incurred and the date on which the asset is
in fact first put to use:
Provided that where any allowances have been given in conse-
quence of this sub-paragraph and the first use to which such asset is put is
not for the purposes of such trade or business, all such additional assess-
ments shall be made as may be necessary to counteract the benefit obtained
from the giving of any such allowances.
Part of an asset.
Extension of
meaning of “in
use”.

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15. Where any person has incurred expenditure which is allowed to be
deducted, in computing the gains or profits of his trade or business under
section 12, such expenditure shall not be treated as qualifying expenditure.
16.-(1)Where the owner of an asset-
(a)has incurred capital expenditure in respect thereof for the
purposes of leasing that asset for use wholly and exclusively
for the purposes of a trade or business carried on or about to
be carried on by a person; and
(b)leases the asset to such person; and
(c)during the whole or part of the term of the lease, the asset is
used wholly and exclusively by such person in such trade or
business,
this Schedule shall apply, with such necessary modifications as the Commis-
sioner may direct, as though such expenditure were incurred wholly and exclu-
sively for the purposes of a trade or business carried on by the owner from the
date when such expenditure was incurred and as though the owner were using
the asset for the purposes of such last-mentioned trade or business in the way
in which and for the period or periods during which the asset is in fact used in
the first-mentioned trade or business.
(2) For the purposes of this paragraph in relation to the trade or
business which an owner is to be treated as carrying on, his basis year for
any year of assessment shall be taken to be the year immediately preceding
that year of assessment. Exclusion of
certain expendi-
ture.
Application of
lessors.

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17.-(1)This paragraph shall apply where either or both of the following
conditions apply with respect to any asset-
(a)the owner of the asset has incurred in respect thereof
qualifying expenditure partly for the purposes of a trade or
business carried on by him and partly for other purposes;
(b)the assets in respect of which qualifying expenditure has
been incurred by the owner thereof is used partly for the
purposes of a trade or business carried on by such owner
and partly for other purposes.
(2) Any allowances and any charges which would be made if both
such expenditure were incurred wholly and exclusively for the purposes of
such trade or business and such asset were used wholly and exclusively for
the purposes of such trade or business shall be computed in accordance
with this Schedule.
(3) So much of the allowances and charges computed in accordance
with subparagraph (a) shall be made as in the opinion of the Commissioner
are just and reasonable having regard to all the circumstances and to the
provisions of this Schedule.
18. Where an asset in respect of which qualifying expenditure has
been incurred by the owner thereof has been disposed of in such circum-
stances that such owner remains the owner thereof, then, for the purposes
of determining whether and, if so in what amount, any annual or balancing
allowance or balancing charge shall be made to or on such owner in respect
of his use of that asset after the date of such disposal-
(a)qualifying expenditure incurred by such owner in respect of
such asset prior to the date of such disposal shall be left out
of account; but Assets used or
expenditure
incurred partly for
the purposes of a
trade or business.
Disposal without
change or owner-
ship.

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(b)such owner shall be deemed to have bought such asset
immediately after such disposal for a price equal to the
residue of such qualifying expenditure at the date of such
disposal, increased by the amount of any balancing charge or
decreased by the amount of any balancing allowance made
as a result of such disposal.
19. In relation to qualifying plant expenditure, this Schedule shall apply as if
references to a trade or business included references to a profession or
vocation the profits of which are assessable under this Act.
20.-(1)This paragraph shall have effect for the purposes of this Schedule,
in relation to a trade or business and the person or persons hereinafter
mentioned carrying on such trade or business, throughout the period (herein-
after called “the relevant period”) being-
(a)any period during which the trade or business is carried on
by persons in partnership and at least one of such persons,
engaged in carrying on the trade or business as a partner in
a partnership at any time, is so engaged immediately after
that time, whether as a partner in the same partnership or as
a partner in a different partnership carrying on the trade or
business; or
(b)the aggregate of any of the following periods which are
successive-
(i) any period, ending immediately prior to a person
becoming a partner in a partnership carrying on the
trade or business, during which such person was
carrying on the trade or business on his own
account;
Application to
professions or
vocations.
Partnership.

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(ii)any period ascertained under subparagraph (a);
(iii)any period during which a person is carrying on the
trade or business on his own account, where such
person was a partner in a partnership carrying on
the trade or business immediately before such
period.
(2) Such trade or business shall throughout the relevant period be
deemed to be carried on by one and the same person (hereinafter called
“the deemed person”) and any allowance or charge which would then fall
to be made to or on the deemed person, under this Schedule, if the
deemed person were an actual person, shall be computed as though the
deemed person had done all things which were done for the purposes of
such trade or business by the person or persons actually carrying on such
trade or business during the relevant period.
(3) The amount of any such computed allowance or charge in respect
of any asset shall be allocated to the person, or apportioned amongst the
persons, actually carrying on the trade or business, in the same manner as
any capital loss, in the case of an allowance, or any capital gain, in the case
of a charge, in respect of such asset, would fall on or accrue to such
person or persons, if such loss or gain arose in the course of carrying on
the trade or business and as a result of an event occurring-
(a)in the case of an annual allowance, at the end of the basis
period by reference to which such allowance has been
computed; and
(b)in the case of a balancing allowance or charge, at the date
of the disposal of the asset.
(4) Any amount so allocated to or apportioned to any person in
respect of any such computed allowance or charge shall be treated as an

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allowance or charge for the purposes of this Schedule relating to deduction
from and additions to the chargeable income and shall be made to or on him
for the year of assessment for which the amount of such allowance or charge
has been so computed.
(5) For the purposes of this paragraph, an asset is not disposed of
within the meaning of paragraph 10 so long as the asset is used for the
purposes of the trade or business during the relevant period and at least one
of the persons actually engaged in carrying on the trade or business has an
interest in the asset, or in the relevant interest therein, during the relevant
period.
(6) In the application of this paragraph with any of the other paragraphs
those provisions shall be applied with any modifications which the Commis-
sioner may consider necessary in order to give effect to the principles and
provisions of this paragraph, and, if he sees fit, the Commissioner may from
time to time prescribe rules embodying any such modifications as he may
consider necessary.
21. Any reference in this Schedule to an allowance made includes a
reference to an allowance which would be made but for an insufficiency of
chargeable income against which to make it.
22.-(1)No allowance shall be made to any person for any year of assess-
ment under this Schedule unless claimed in the statement required to be
delivered by him under section 31 for that year or, where the Commissioner
is of the opinion that it would be reasonable and just to do so, in such form
and within such time as the Commissioner may allow.
(2) In the case of a partnership there shall be included in the form of
return required to be delivered by any partner under section 35, such par-
ticulars and information as may be necessary for the purpose of any claim by
any partners for any allowance which falls to be computed by reference to
the provisions of paragraph 22.
Meaning of
allowances made.
Claims for allow-
ances.

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23.-(1)Where a person makes a claim to an annual allowance under this
Schedule in connection with any trade or business, if the taxes in respect of
the profits of that trade or business are the subject of an arrangement,
having effect by virtue of section 50, between the Government of Belize and
the Government of any other territory, for relief from double taxation, he
may elect, at the time of making such claim or within such reasonable time
thereafter as the Commissioner may allow, that that allowance shall be
calculated at a lesser rate than that provided for in paragraph 5 and in
making such election he shall specify the amount of such lesser rate.
(2) Where an election has been made under this paragraph the amount
of such lesser rate shall be taken to be the appropriate rate in relation to that
allowance for all the purposes of this Schedule.
24.-(1)The amount of any charge to be made on a person under this
Schedule shall be made on him by making an addition to his chargeable
income for the year of assessment for which such charge falls to be made
under this Schedule:
Provided that where any such charge falls to be made on any
person for any year of assessment, whenever necessary by reason of the
assessment on that person having become final and conclusive for that year
or for other sufficient reason, the Commissioner may make an additional
assessment upon such person in respect of the amount of such charge.
(2) The amount of any allowance to be made to a person under this
Schedule shall be made to him by making a deduction in arriving at the
amount of his chargeable income for the year of assessment for which such
allowance falls to be made under the provisions of this Schedule. Where
such deduction creates or adds to a loss in the basis year, the loss or
increased loss shall be the loss falling within section 15. Election in double
taxation cases.
Manner of making
allowances and
charges.

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SIXTH SCHEDULE
[Sections 98 (10) and 102 (5) (1)] Petroleum Operations Expenditures
1. Petroleum Operations Expenditures shall be calculated and ac-
counted for in a manner consistent with the following principles and defini-
tions and shall include all reasonable and necessary expenses for the conduct
of Petroleum Operations, including but not limited to:
(1) Cost of hiring sub-contractors and of salaries and wages of the
contractor’s employees directly engaged in Petroleum Operations, including
costs of holidays, vacations, sickness, living and housing allowances, travel
time, bonuses and other established plans for employee benefits customarily
granted to the Contractor’s employees and their families in similar ventures.
(2) Costs of material, equipment, machines, tools and any other goods of
a similar nature used or consumed in Petroleum Operations subject to the
following:
(a) acquisition – the Contractor shall only supply or purchase
materials for use in Petroleum Operations that may be used in
the foreseeable future. The accumulation of surplus stocks
and inventory shall be avoided. Inventory levels shall, how-
ever, take into account the time lag for replacement, emer-
gency needs and similar considerations;
(b) components of costs – costs of materials purchased by the
Contractor for use in Petroleum Operations may include, in
addition to the invoice price (subtracting the discounts given,
if any), freight costs and costs of transportation between the
supply point and delivery point (provided that such costs are
not included in the invoice price, inspection costs, insurance,
Petroleum Opera-
tions Expenditure.
Labour cost.
Material costs.

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custom duties, taxes and other items that may be charged to
imported materials or to materials purchased in Belize);
(c) accounting – such materials costs shall be charged to the
accounting records and books based on the “First-in First-
out” (FIFO) method;
(d) supply of materials by Affiliated Companies – materials
supplied by the Contractor’s Affiliated Companies shall be
charged to the accounting records and books at prices no
higher than the prices for comparable material purchased
on a competitive basis from third party suppliers. This
criterion shall apply to both new and used materials;
(e) inventories – the Contractor shall maintain both a physical
and accounting inventory of all materials in stock in accor
dance with generally accepted practices in the international
petroleum industry. The Contractor shall make a physical
inventory of all such materials at least twice yearly. The costs
of non capital items purchased for inventory shall be charged
to operating expenditure when issued from stock for
consumption.
(3) The value of technical services costs relating to Petroleum Opera-
tions shall be:
(a)in the case of technical services performed by third parties
directly subcontracted, including outside consultants,
contractors and utilities, the price paid by the Contractor,
provided that such prices are no higher than the prices charged
by other suppliers for comparable work and services; and
(b)in the case of technical services performed by the Contractor
or its Affiliated Companies, prices which are no higher than
Technical service
costs.

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the most favourable prices charged to third parties for compa-
rable services.
(4) The value of insurance relating to Petroleum Operations shall be:
(a)in the case of insurance purchased from third parties, the
price paid by the Contractor, provided that such price is no
higher than the price charged by other insurers for
comparable insurance;
(b)in the case of insurance purchased from an Affiliated
Company, the price shall be no higher than the most
favourable price charged to third parties for comparable
insurance.
The proceeds of any insurance or claim shall be credited against
Petroleum Operations Expenditures. Except in cases where insurance cover-
age is required pursuant to its contract with the Government, if no insurance is
carried for a particular risk, all costs incurred by the Contractor in settlement of
any related loss, claim, damage or judgment, including legal services, shall be
includable in Petroleum Operations Expenditures provided that such costs did
not result from the Contractor’s gross negligence.
(5) Costs and expenses of litigation and legal or related services
necessary or expedient for the protection of the area covered by a Contractor’s
contract with the Government. Any damages or compensation received shall
be credited against Petroleum Operations Expenditures. The Contractor’s costs
incurred in arbitrating a dispute with the Government relating to its contract
shall not be included in Petroleum Operations Expenditures.
(6) So much of the expenditure in the nature of general services and
administrative costs, other than direct costs, as is not in excess of three per cent
(3%) of total petroleum operating expenditure, including, but not limited to:
Insurance and
Claims.
Legal and
litigation costs.
General adminis-
tration and
services over-
head costs.

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(a)the Contractor’s personnel and services costs outside of Belize
relating to administration, legal, accounting, treasury, auditing,
taxation, planning, employee relations, purchasing and other
functions related to Petroleum Operations under its
Agreement; and
(b)reasonable and necessary travel expenses of the
Contractor’s personnel in the general and administrative
categories listed in (a) above for the purpose of inspections
and supervision of Petroleum Operations in Belize shall be
allocable to Petroleum operations Expenditures according
to methods agreed to by the Contractor and the
Government.
(7) Interest, fees, duties, taxes and other financial charges relating to
loans and credits obtained by the Contractor to acquire funds for the
execution of its obligations under this Agreement at rates not exceeding
the prevailing commercial rates or in the aggregate not exceeding twenty-five
percent (25%) may be charged to Petroleum Operations Expenditures.
(8) Staffing and maintenance of the Contractor’s head office in Belize
and other offices in Belize, including rent, telephone, telex and radio expenses,
as well as the expenses of general facilities such as shore bases, warehouses,
water, power and communication systems, roads and bridges.
(9) All payments to the Government or any local authority, including but
not limited to surface rentals, fees, taxes, imposts, dues and levies, but
excluding tax and royalty.
2. Petroleum Operations Expenditures consist of capital and operating
expenditures.
(1) Capital Expenditures are those Petroleum Operations Expenditures
for assets that normally have a useful life which extends beyond the year in
Maximum interest,
etc., on loans and
credits to be
charged to Petro-
leum Operations.
Office costs, etc.,
in Belize.
Payment to the
Government.
Capital and Operat-
ing Expenditures.
Capital Expendi-
tures.

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which the asset was acquired.
In addition to expenditures relating to assets that normally have a
useful life beyond the year in which the asset was acquired, the costs of devel-
opment operations, as described in paragraph (e) below, and signature and
production bonuses as listed in (f) below, will be classified as capital expendi-
tures.
Capital expenditures include, but are not limited to, the following:
(a) construction utilities and auxiliaries – work shops, power
and water facilities, warehouses, and field roads, cost of crude
oil treating plants and equipment, secondary recovery systems,
natural gas plants and steam systems;
(b) construction housing and welfare housing – recreational
facilities and other tangible property incidental to construction;
(c) production facilities – production rigs (including the costs of
labour, fuel, hauling and supplies for both the offsite fabrication
and onsite installation of rigs, and other construction costs in
erecting rigs and installing pipelines), wellhead equipment, sub-
surface lifting equipment, production tubing, sucker rods, sur-
face pumps, flow lines, gathering equipment, delivery lines and
storage facilities;
(d) movables – surface and subsurface drilling and production
tools, equipment and instruments, barges, floating craft, auto
motive equipment, aircraft, construction equipment, furniture
and office equipment and miscellaneous equipment;
(e) development and production drilling – labor, materials and
services used in drilling wells with the object of penetrating a
proven reservoir, including the drilling of delineation wells as

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well as redrilling, deepening or recompleting wells, and ac-
cess roads, if any, leading directly to wells;
(f)signature and production bonuses.
(2) Operating Expenditures are all Petroleum Operations Expenditures
other than capital expenditures, including but not limited to:
(a) exploration drilling – labor, materials and services used in
the drilling wells with the object of finding unproven reservoirs
of crude oil and natural gas, and access roads, if any, lead-
ing directly to wells;
(b) surveys – labor, materials and services used in aerial,
geological, topographical, geophysical and seismic surveys,
and Core hold drilling; and
(c) other exploration expenditures – auxiliary or temporary
facilities having lives of one year or less used in exploration
and purchased geological and geophysical information.
3. Capital expenditures, as defined in paragraph 1, shall be depreciated or
amortized for the purpose of the calculation of tax. For the purpose of deter-
mining the amount of depreciation or amortization which is allowable as a
deduction in each calendar year, the following principles shall apply:
(1) Capital expenditures will be depreciated or amortized using the straight
line method over five (5) years.
(2) A full year’s depreciation or amortization may be taken in the first
Calendar Year in which such depreciation or amortization is allowable.
(3) Deductions with respect to depreciation or amortization of capital
expenditures incurred shall be allowable commencing with (A) the Basis Year
Operating Expendi-
tures.
Depreciation
Amortization.

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Belmopan, by the authority of
the Government of Belize.
Income and Business Tax[CAP. 55
[] 137
in which the capital asset is placed into service, or, if the capital expenditure
does not relate to an asset that normally has a useful life beyond the year in
which it is placed in service, the Calendar Year in which the capital expenditure
is incurred, or (B) the Calendar Year in which Initial Commercial Production
first occurs, whichever is later.
4. The following expenditures shall not be included in Petroleum Operations
Expenditures:
(a)costs and expenses incurred at any time prior to the effective
date of the Contractor’s contract with the Government, unless
expressly permitted in such contract;
(b)costs relating to Petroleum marketing or transportation be-
yond the Delivery Point;
(c)contributions and donations, except those approved by the
Government;
(d)gifts or rebates to suppliers, and gifts or commissions to
intermediaries arranging service or supply contracts;
(e)any fines, monetary corrections or increases in expenses
resulting from the Contractor’s failure to comply with the
obligations under its contract with the Government, or
applicable law; and
(f)any other expenditures not directly related to Petroleum
Operations or not in compliance with the provisions of this
Sixth Schedule.
General Exclu-
sions.
Sixth Schedule.

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Belmopan, by the authority of
the Government of Belize.
[] 138
SEVENTH SCHEDULE
[Section 14] Method of Calculating Export Allowance
1. An export allowance for the purpose of subsection (1) of section
14 shall not exceed the percentage (being percentage of the whole of the tax
liability on the entire export profits) specified in the table below opposite the
percentage of export profits-
Amount of Export Profits Maximum Percentage of
Expressed as a Percentage Tax Relief
of the Entire Profits
10% or more but less than 21 % 25%
21 % or more but less than 41 % 35%
41 % or more but less than 61 % 45%
61 % or more 50%
2. The following formula shall be used to ascertain export profits for
the purpose of this section-
E x P
S
where “E”represents the proceeds from export sales for the year;
and “P” represents the profits made by the enterprise from all
sales for the year;
and “S” represents the proceeds of all sales for the year.
32 of 1987.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
Printed by the Government Printer,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Income and Business Tax[CAP. 55
[] 139
EIGHTH SCHEDULE
[Sections 105 (1) and (3)] 1. Accountants
2. Architects
3. Attorneys-at-Law
4. Auctioneers
5. Building Contractors
6. Consultants
7. Customs Brokers
8. Dentists
9. Engineers
10. Insurance Brokers and Underwriters
11. Mechanics
12. Medical Practitioners
13. Moneylenders
14. Ophthalmologists
15. Opticians
16. Optometrists
17. Real Estate Agents
18. Shipping Agents
19. Surveyors
20. Tour Operators
21. Travel Agents
22. Veterinarians

Income and Business Tax CAP. 55] THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
Printed by the Government Printer,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
[] 140
NINTH SCHEDULE
[Sections 111 (3) and 113 (2)] RATES OF TAX
(a)Receipts from radio, on-air television and
newspaper business…………………………………………….0.75%
(b)Receipts from domestic air line business………………….0.75%
(c)Receipts of service stations from the sale of
fuel and lubricants……………………………………………….0.75%
(d)Receipts from other trade or business……………………..1.25%
(e)Rents, royalties, premiunms and any other receipts from
real property………………………………………………………1.5%
(f)Receipts from a profession, vocation or occupation…..4%
(g)Receipts of an insurance company licensed under
the Insurance Act………………………………………………..1.5%
(h)Commissions, royalties, discounts, dividends,
winnings from lotteries, and interest on loans
paid to non-residents…………………………………………..15%
Provided that in the case of commissions of less than $25,000.00 per annum, the rate shall be
5%.
(i)Receipts of a financial institution licensed under the Banks and
Financial Institutions Act………………………………………..10%
Provided that in the case of a financial institution which falls within a “PIC Group” as
defined in the International Business Companies Act, the rate shall be 4%.
(j)Management fees, rental of plant and equipment and charges for technical
services-
(i) if paid to a non-resident………………………………25%
(ii) if paid to a resident ……………… the rate applicable to the particular
trade, business, profession, vocation
or occupation of the payee.
(k)Receipts of entities providing telecommunication
services…………………………………………………………….19%.
18 of 1998.
7 of 1999.
7 of 1999.
7 of 1999.
7 of 1999.
7 of 1999.
7 of 1999.
7 of 1999.
CAP. 270.

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