Belize’s International Financial Services Commission has latterly disseminated the template Economic Substance Forms (B, C and D), coming after its earlier guidance note of G-CD-No.7. 2 of 2020, released on 27th April 2020.
Who and How to declare Economic Substance in Belize?
Pursuant to Belize Economic Substance Act (2019), all Belize IBCs and relevant entities regulated under this Act must proceed with annual filing and delivery of economic substance report to the Commission.
The reporting period is set during 9 months from the entity’s fiscal year end. Note that each group of entities shall be subject to different declaration forms as prescribed by the Commission.
Below table clarifies each form which must be well-attached to certain entities under Belize ESA:
|Entity||Applied Form||Submission Date|
|Included entities or holding companies fully or partly conducting relevant activities||Form B >>||Within 9 months after ending the fiscal year|
|Pure equity holding companies||Form C >>|
|Non-included entities||Form D >>|
Note: Information described on each Form B, C, D must be thoroughly examined and approved with signature by the director (nominee director is not accepted) or the majority shareholder. Furthermore, any compliance failure to follow economic substance reporting requirements as above mentioned can be subject to a financial penalty up to US$1.000 per case.
Still uncertain about whether your entity is subject to Belize ESA or not? Please visit our guide Belize Economic Substance Requirements and Tax Guides for further details. You can also use our Belize ES Self-Assessment Tool to have a check on it!