CAP. 55 INCOME AND BUSINESS TAX ACT

1 BELIZEINCOME AND BUSINESS TAX ACTCHAPTER 55 REVISED EDITION 2000 SHOWING THE LAW AS AT 31ST DECEMBER, is a revised edition of the law, prepared by the Law Revision Commissionerunder the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,Revised Edition 1980 - edition contains a consolidation of the following laws -PageARRANGEMENT OF SECTIONS 3 INTERPRETATION ACT 10 Amendments in force as at 31st December, AND BUSINESS TAX ACTCHAPTER 55 REVISED EDITION 2000 SHOWING THE LAW AS AT 31ST DECEMBER, is a revised edition of the law, prepared by the Law Revision Commissionerunder the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,Revised Edition 1980 - edition contains a consolidation of the following laws -PageARRANGEMENT OF SECTIONS 3 INTERPRETATION ACT 10 Amendments in force as at 31st December, SUBSTANTIVE LAWS OF BELIZEREVISED EDITION 2000 Printed by the Government Printer,No.

2 1 Power Lane,Belmopan, by the authority ofthe Government of and BUSINESS Tax[CAP. 55[]3 CHAPTER 55 INCOME AND BUSINESS TAXARRANGEMENT OF SECTIONSPART IPreliminary1. Short Appointment of Commissioner, Official of INCOME Tax5. Charge of INCOME Basis of Special periods of BUSINESS of shipping by Government of Chargeable Income11. Deductions Allowance for wear and tear (Fifth Schedule).13. Deduction not to be and BUSINESS Tax CAP. 55]THE SUBSTANTIVE LAWS OF BELIZEREVISED EDITION 2000 Printed by the Government Printer,No. 1 Power Lane,Belmopan, by the authority ofthe Government of Belize.[]414. Export Allowance of trade Reduction in case of resident in Deduction for certain Special provision as to certain companies and Wife s Rates of taxes upon persons other than Flat rate of tax on Deduction of tax from dividends of Temporary , Agents, Chargeability of trustees, Chargeability of agent of person residing in Acts, etc.

3 , to be done by trustees, Statement to be prepared by trustees, Manager of corporate bodies of Indemnification of Deceased Powers of Commissioner31. Accounts and Audit and ancillary Official information and official Signature of Service of Commissioner to make SUBSTANTIVE LAWS OF BELIZEREVISED EDITION 2000 Printed by the Government Printer,No. 1 Power Lane,Belmopan, by the authority ofthe Government of and BUSINESS Tax[CAP. 55[]539. Additional Record of persons assessed and notices of Appointment of agent in the United Power of Commissioner to revise assessment and of Board toentertain objections to Appeals against Errors, etc. in assessments and in Cases of Double Taxation46. Relief in respect of United Kingdom INCOME Relief in respect of Commonwealth INCOME Time for making Official Double taxation Tax Double taxation relief applicable to and Repayment of Tax53.]

4 Extracts from assessment lists to be sent to Time within which payment is to be Penalty for non-payment of tax, and enforcement of Collection of tax after determination of objection or Debt to the Garnishment of Recovery of tax in certain Exit Repayment of for Recovery of INCOME Tax62. Notice to be given to tax and BUSINESS Tax CAP. 55]THE SUBSTANTIVE LAWS OF BELIZEREVISED EDITION 2000 Printed by the Government Printer,No. 1 Power Lane,Belmopan, by the authority ofthe Government of Belize.[]663. Collector to issue warrant against goods for recovery of Suspension execution and institution of proceedings Debtor Process65. Magistrate may order payment of tax, etc., into Imprisonment for failure to obey Debtor paying whole of amount ordered to be by way of Distress68. Form and scope of warrant (First Schedule).

5 69. Sales on goods levied on and disposal of Bailiff s Against Lands or Houses71. 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 (ThirdSchedule).73. On abortive sale of realty and continued default in payment propertyto vest in Conditions of Effect of execution of sale with regard to Form of conveyance (Fourth Schedule).77. Disposal of surplus proceeds of by Third Parties78. Affidavit by a person not the defaulter, claiming the property Discontinuance of levy upon bond being given by claimant, SUBSTANTIVE LAWS OF BELIZEREVISED EDITION 2000 Printed by the Government Printer,No. 1 Power Lane,Belmopan, by the authority ofthe Government of and BUSINESS Tax[CAP. 55[]780. Abandonment of levy or setting cause down for Issue at Procedure to be same as in ordinary Exemption from stamp Onus Prosecution to commence within six Penalties for False statement and Saving for criminal Impeding or obstructing Commissioner or Transfer of property to evade Procedure and Use of agents to detect Minister may remit of Tax Withholding96.]

6 Failure to deduct and Assessment for failure to deduct or IIIncome Tax on Profits Arising fromPetroleum Operations98. Separate accounts for pertroleum Assessment of chargeable Valuation of and BUSINESS Tax CAP. 55]THE SUBSTANTIVE LAWS OF BELIZEREVISED EDITION 2000 Printed by the Government Printer,No. 1 Power Lane,Belmopan, by the authority ofthe Government of Belize.[]8102. Tax Accounting Principles carry forward of losses; keeping of ac-counts; arms length transactions; deductions allowed in ascertainmentof chargeable Application of Part I to Petroleum IIIB usiness Tax104. Part III to override other Imposition of BUSINESS Rates of Exemptions from Duty to make returns and pay Commissioner to make Additional Witholding tax on gross contract Collection of tax on winnings from lottery, tax on interest on timedeposits, dividends or management fees, Refund of excess Carry forward of Penalty for Liability of purchaser of BUSINESS or entity to pay arrears of General Transitional SCHEDULE - Warrant to levy_____THE SUBSTANTIVE LAWS OF BELIZEREVISED EDITION 2000 Printed by the Government Printer,No.

7 1 Power Lane,Belmopan, by the authority ofthe Government of and BUSINESS Tax[CAP. 55[]9 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 allowanceEIGHTH SCHEDULENINTH SCHEDULEI ncome and BUSINESS Tax CAP. 55]THE SUBSTANTIVE LAWS OF BELIZEREVISED EDITION 2000 Printed by the Government Printer,No. 1 Power Lane,Belmopan, by the authority ofthe Government of Belize.[]10 CHAPTER 55 INCOME AND BUSINESS TAX[12th December, 1923]PART IPreliminary1. This Act may be cited as the INCOME and BUSINESS Tax In this Act, unless the context otherwise requires -Ch. 38, , 46, of of of of of of of of of of of of of 19807 of 19823 of of of of of of of of of of of of of of of of of of 7 of of SUBSTANTIVE LAWS OF BELIZEREVISED EDITION 2000 Printed by the Government Printer,No.

8 1 Power Lane,Belmopan, by the authority ofthe Government of and BUSINESS Tax[CAP. 55[]11 basis year means the calendar year coinciding with the year of assessmentexcept where another period is substituted by the Commissioner under section7; Board means the INCOME Tax Appeal Board appointed under section 3(3); body of persons means any body politic, corporate or collegiate and anycompany, 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 theincome 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 definedin Part III of this Act.]

9 (ii) in the case of any person other than an employed person, theaggregate amount of the INCOME from the applicable sourcesspecified in section 5 remaining after allowing the appropriatedeductions 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 Commissionerof INCOME Tax; child includes a stepchild, an adopted child, or a child born out of wedlockwho is wholly maintained by the parent claiming the allowance, but does notinclude a child who is married or has been married or is cohabiting in a com-mon law union;8 of of of of and BUSINESS Tax CAP. 55]THE SUBSTANTIVE LAWS OF BELIZEREVISED EDITION 2000 Printed by the Government Printer,No. 1 Power Lane,Belmopan, by the authority ofthe Government of Belize.

10 []12 Commissioner means the Commissioner of INCOME Tax appointed undersection 3 (1); company means any company incorporated or registered under any law inforce in Belize, and any company which, though incorporated or registeredoutside Belize, carries on BUSINESS , or has an office or place of BUSINESS therein; incapacitated person means any infant, person of unsound mind, or insaneperson; judge means a judge of the Supreme Court; lottery means any scheme for distributing prizes by lot or chance but doesnot include raffles where the value of the article raffled is not more than tendollars; Minister means the Minister responsible for Finance; person means a natural person or a legal person and includes a firm, a branchand 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 andhydrogen; and includes crude oil and natural gas, and all other mineral sub-stances, products, by-products and derivatives that are found in conjunctionwith 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 otheroperations:(i) beyond the point of export; or19 of of of SUBSTANTIVE LAWS OF BELIZEREVISED EDITION 2000 Printed by the Government Printer,No.