Belize - Economy
By Brett_Bumeter | February 23, 2008
The Belizean Dollar has a fixed rate of exchange (BZ$2 : US$). Of course, most tourist businesses will accept US dollars, credit cards or traveler’s checks. From 1986 – 1990 the Economy grew at ten percent with an average inflation rate of 2.8%. However, Belize was not immune to the economic downturn that affected the world wide economy in the early 90’s. Trade deficits grew in the mid-90’s as a result of low banana and sugar prices (half of exports now from sugar; banana industry is largest employer).[1]
Belize at the end of the 90’s saw the PUP return to power and the economic policies that followed encouraging foreign investment saw growth rise again to rates of four to five percent with consumer price deflation of almost one percent. Belize is focusing more attention on the tourist industry with an emphasis on attracting US visitors. The illicit drug trade played a negative factor in the 1980’s and early 90’s but has recently seen a decrease in the open or blatant practice of the trade.
[1] Lowtax.net, Belize-Country & Foreign Investment Regimes, available at http://www.lowtax.net/lowtax/html/jbzcfir.html#economy (last visited on Oct. 2, 2002).
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Topics: Economy, Historical Economy, II Politics and Economy | No Comments »
Belize - Investments
By Brett_Bumeter | February 23, 2008
(1.) Fiscal Incentive Act, No. 6 of 1990
This act provides for tax holidays and duty exemptions. When these are extended, they can last for five to ten years. Agricultural investments can last for twenty-five years.[1] For alternative details and benefits[2]
[1] Id.
[2] Belize Trade & Investment Development Service (Beltraide), Investment Guide: Legislation: Fiscal Incentives Act, available at http://www.belizeinvest.org.bz/act_fiscal.shtml (last visited on Oct. 2, 2002).
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Topics: Fiscal Incentive Act, II Politics and Economy, Investment Business, Investments | No Comments »
Belize - Commercial Free Zone (CFZ) Act 1994
By Brett_Bumeter | February 23, 2008
The Commercial Free Zone Act, was established in Corozal for various business activities. This act offers duty exemptions and tax holidays on goods entering and leaving a designated area. These zones provide an income tax rate of varying from two to eight percent with credits available for a further two percent reductions in rate.[1] For Benefits and other details[2]
(3.) International Business and Public Investment Companies (IBC) Act 1990
Some benefits of the IBC in Belize include exemption from all income taxes, dividend taxes, interest rent and royalties taxes, exemption from capital gains taxes, no citizenship or residency requirements, and meetings of shareholders/directors can be held anywhere.[3]
(4.) Mines and Mineral Act 1988
(5.) Export Processing Zone (EPZ) Act 1990
This act covers a multitude of opportunities including full duty exemptions, tax exemptions (capital gains, sales, excise, consumption, transfer, and more), income tax holiday of twenty years, customs inspection at the zone, no cost work permits for professionals and technical staff, and licensing requirements are removed for import, export, trade licensing for business and domestic suppliers who sell to EPZ businesses. Available in three zones, one zone is eight miles from Mexico and NAFTA, and the other two locations are near Belize City, the commercial capital.[4] Click this Hyperlink further details[5]
The government still offers one hundred percent foreign ownership of both land and company assets. Speculation following World War II led to a significant US investment and influence in the region. In the early 80’s, at the time of Belizean independence, US citizens owned aproximately forty percent of all land in Belize.[6]
The Caribbean beauty of Belize and its barrier reefs, the English speaking language and relatively easy accessibility from both Mexico and the US could prove very valuable in attracting programmers in the future. Recently, DataPro International Ltd. registered for Belizean EPZ developer status and is planning to invest $1.25m US to begin data processing operations in Belize. Click here for further detail or see reference [7]
[1] Lowtax.net, supra note 8.
[2] Belize Trade & Investment Development Service (Beltraide), Investment Guide: Legislation: Commercial Free Zone (CFZ) Act 1994, available at found at http://www.belizeinvest.org.bz/act_cfz.shtml (last visited on Oct. 2, 2002).
[3] Belize Trade & Investment Development Service (Beltraide), Investment Guide: Legislation: International Business Companies Act (IBC) Act, available at http://www.belizeinvest.org.bz/act_ibc.shtml (last visited on Oct. 3, 2002).
[4] Lowtax.net, supra note 8.
[5] Belize Trade & Investment Development Service (Beltraide), Investment Guide: Legislation: Export Processing Zone (EPZs), available at http://www.belizeinvest.org.bz/act_epz.shtml (last visited on Oct. 3, 2002).
[6] Cubola Productions Chapter 13: Regional Influences on Belize. A History of Belize: Nation in the Making, Jan 11, 2002.
[7] Belize Trade & Investment Development Service (Beltraide), Investment Guide: Legislation: GAMING CONTROL ACT, available at http://www.belizeinvest.org.bz/act_gaming.shtml (last visited on Oct. 3, 2002).
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Topics: Commercial Free Zone Act 1994, II Politics and Economy | No Comments »