The Ministry of Finance is responsible for administering income tax, business tax and general sales tax (GST) in Belize, in coordination with the Belize Tax Service (BTS).
Businesses operating in Belize are taxed based on a gross receipts business tax system. Business tax rates vary according to business classification and range from 1.75% to 19%.
GST is chargeable on both imports (levied at the point of importation on the basis of c.i.f. customs value plus the customs duty) and domestically produced goods and services. The standard GST rate is 12.5% on the supply of most goods and services within Belize, with the exception of exempt and zero-rated items. Exemptions apply to financial services, some medicines and medical supplies for human use and certain agricultural supplies. Zero-rated items include rice, flour, bread, eggs, fresh meat, beans, sugar, baby formula and locally produced fresh fruit and vegetables.
An Environmental Tax of 2% is levied on all goods imported into Belize (but not on domestic goods). This tax does not apply to certain basic food items (including rice, beans, potatoes, coffee, tea, butter and butter substitutes, cheese, margarine, cooking oil, shortening, lard and lard substitutes, powdered and condensed milk, baby formula, sardines, meat of swine (salted or in brine), corned beef and salt) as well as medicines and medical supplies for human use.
Personal income tax is levied at a flat rate of 25% on employment income above a BZ$26,000 exemption threshold.