Belize Tax Agency Issues Public Ruling Clarifying GST Treatment of Former International Business Companies

The Belizean Tax Service Nov. 24 issued Public Ruling No. 04/2023, clarifying the GST treatment of supplies made to entities that were previously defined as international business companies (IBCs), but are now covered by the Companies Act. The ruling clarifies: 1) the application of the Economic Substance Act (ESA) to commercial entities, including nonresident companies that are incorporated, registered, or continued under the ESA; 2) the application of zero-rated GST to supplies made to nonresident companies registered in Belize, upon establishment of residency outside Belize under the ESA; 3) the requirements for establishing tax residency outside of Belize through a ...