The Income and Business Tax (Amendment (No 2)) Act 2010 was approved by the governor general on December 30 2010. The amendment introduced two significant changes to the Income and Business Tax Act as it relates to income tax. The first amendment provides further tax relief to employed persons who earn no more than $29,000 a year.
The act creates four brackets for ascertaining the chargeable income of an employed individual who is resident in Belize:
- Where total employment income does not exceed $26,000, $25,600 is deductable;
- Where total employment income exceeds $26,000 but not $27,000, $24,600 is deductable;
- Where total employment income exceeds $27,000 but not $29,000, $22,600 is deductable; and
- Where total employment income exceeds $29,000, $19,600 is deductable.
Thus, if a person earns exactly $26,000 a year, then only $400 of that income is taxable. This amendment is retroactive and was made effective from January 1 2010. It replaces an amendment which was made in early 2010.
The second amendment relates to Section 108(1) of the principal act, which sets forth income which is exempt from tax. The amendment includes tax exemptions from "dividends paid to their shareholders by entities licensed to provide telecommunication services that offer real time voice services".
The amendment came into effect on January 1 2011.
For further information on this topic please contact Christopher Coye at Appleby by telephone (+1 345 814 2013), fax (+1 345 949 4901) or email ([email protected]).