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Belize Economic Substance Test

Included Entity
Condition
Entities regulated under IFSC Act;
Belize BC conducting relevant activities; or
Belize LLC conducting relevant activities.
Compliance
Conducting its core income-generating activities in Belize
Adequate expenditure, employees and appropriate premises in Belize
Management and control in Belize
Reporting
Form C: Pure Equity Holding Company
Form B: General activities

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Frequently Asked Questions

How can Economic Substance Requirements affect your Belize company?

Belize companies carrying on relevant activities or regulated under Belize IFSC Act shall be subject to the Economic Substance Act, 2019 in Belize.

“Relevant activities” under the Belize ES regime include Banking, Insurance, Fund Management, Finance and leasing, Headquarters, Shipping, Holding company, and Distribution and service centers.

All in-scope BCs under this regime must fulfill the compliance duties or economic substance test for each relevant activity they engage in.

What are “relevant activities” under Belize ES regime?

Economic substance requirements in Belize are applicable to legal entities that engage in one or more relevant activities as the followings:

  • Banking
  • Insurance
  • Fund management
  • Finance and leasing
  • Headquarters
  • Shipping
  • Holding business/pure equity holding
  • Distribution and service centre

What are the compliance requirements for included entities under the Belize ES rule?

Included entities must demonstrate economic substance in Belize. The entity will be considered compliant with the economic substance requirements if it can meet the following tests:

  • Conducting its core income-generating activities in Belize
  • Adequate expenditure, employees and appropriate premises in Belize
  • Management and control in Belize

Note that core income-generating activities (CIGA) are varied depending on each business activity. Entities engaging in holding company business will be subject to a reduced test if comparing to general business activities.

What are the deadlines for your Belize entities to submit the Economic Substance Report?

In-scope Belize companies are required to report to the competent authority within nine months of the end of a fiscal year.

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