IMF recommends to Belize to carry out a tax reform

25.07.2013

The International Monetary Fund has prepared a report that contains the valuation of Belize’s economic satiation, as well as a number of recommendations to improve the economic performance of the country.

The International Monetary Fund is of the opinion that the Government of Belize should pay attention to the tax system’s reform, in particular, to the taxation of business. The report noted that priority should be given to tax reforms which will ensure an economic growth, equity and profitability of the state budget.

Experts of the International Monetary Fund in their report offers several measures aimed at improving of the budget’s profitability in Belize:

- The introduction of a unitary tax for all companies, at a minimum rate of 1.5%;

- Taxation of capital income at the rate of 15%;

- To make general tax rules both for companies - residents of the country and for the companies - non-residents.

Based on: www.imf.org

Expert’s opinion

Initially, Belize took control of the business company’s registration. Now they say how to live, to collect taxes, well .... to reduce the profitability of the country. As a counter to all recommendations, all investors will simply transfer their assets to another jurisdiction, where they it is not necessary to pay even 1,5% taxes. In such situation the increase of profitability will be open to question.

It's hard to believe that this classic offshore will introduce some taxes or even equate the tax rates for residents and non-residents. This haven was created exactly for the purposes to attract the attention of non-residents and to give a lift at the same time both - them (non-residents) and itself.

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)