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04 October 2012
A few noteworthy tax measures have accompanied the 2012–2013 national budget.
First, the government has reintroduced a business tax rate of 1.75% for entities that provide electricity supply services. This effectively applies to Belize Electricity Limited (BEL). In the 2010–2011 budget, the government had increased the rate of business tax on BEL to 6%, and the then owners had complained about the increase. BEL was nationalised in July 2011 and now the rate has reverted to the previous level.
Second, business tax imposed on two sectors has been adjusted. With respect to contractors, business tax will be imposed at a rate of 6% on the first 40% of a contract price and at a rate of 3% on the remaining 60%. This is a reduction, overall, on the business tax levied on contractors.
Finally, service providers in the international financial services sector will now pay business tax at a rate of 3%. This will apply to the portion of their services provided to non-residents, if the service providers maintain that revenue separate from their domestic revenue. However, if there is a commingling of receipts, then the service provider will be taxed at 6%.
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