Belize Deductions & Exemptions for Individual Taxation

(b.) Deductions / Exemptions

In general there are many standard exemptions including but not limited to exemptions for the receipt of interest from Government loans, Belize Social Security or pensions from Belize, disability or retirement pensions for veterans from Her Majesties Forces. Belize also exempts pension income received by retirees resident within Belize received from sources outside of Belize. Dividends received by a shareholder up to one thousand dollars received from a company operating in an approved development industry.[1]

Employed persons resident in Belize may receive a deduction on income of $19,600.00 BZD. Any person resident in Belize whose total income is less than $20,000.00 BZD will not be charged any tax. A tax credit equal to $100.00 BZD will be allowed to all citizens. All income whether exempt or not must be added together to determine gross income from which this deduction will be taken.[2]

A deduction can be taken for gifts exceeding $250 in the aggregate but not to exceed one-sixth of gross income when those gifts are provided to such groups as: charitable, educational, ecclesiastical, or for the improvement of towns or villages, or for cultural purposes.[3]

Separately gifts to children for education purposes such as school fees, books or other education contributions for children not living with the taxpayer but being wholly supported by the tax payer may be deducted. The amount cannot exceed $400 per child or $1600 total for any given tax year.[4]

[1] Id. § 8.

[2] Id. § 16.

[3] Id. § 17(1-3).

[4] Id. § 17(4).