Employer Tax Contributions

Tax Type	Rate	Base
Income Tax (PAYE)	25%	Income over BZD $26,000 annually.
Social Security (Employer Share)	Varies by wage class	Weekly insurable earnings (max BZD $520 weekly)
Social Security (Employer Share, age 60+)	BZD $2.60 per week	Per employee (age 60-64 receiving benefits, or 65+)
Business Tax	1.75% - 19%	Gross receipts (varies by business classification)

Filing & Compliance

• Remit PAYE and Social Security contributions monthly.
• PAYE withholding tax returns and payments are due by the 15th of the following month.
• Social Security contributions are due by the 14th of the following month.
• File an annual PAYE return (TD4 summary) by March 31.

In Belize, employee income tax is levied at a flat rate of 25% on chargeable income above a certain threshold. Several deductions and reliefs can reduce the taxable income.

Personal Income Tax (PIT)

As of January 1, 2025, individuals employed in Belize are subject to a 25% income tax on earnings above BZD $29,000. Those earning below this threshold are exempt from income tax.

• Tax-Free Threshold: Annual income below BZD $29,000 is not subject to income tax.

• Basic Deduction/Relief: A basic deduction is applied to incomes above BZD $29,000, which varies according to the following income brackets:

  • BZD $29,000.01 - BZD $32,000: A tax credit of BZD $2,250 less 75% of the amount exceeding BZD $29,000 is applied.
  • Above BZD $32,000: A standard deduction of $20,000 applies

• Example (for income above BZD $32,000): An individual earning BZD $40,000 annually would have a chargeable income of BZD $20,000 (BZD $40,000 - BZD $20,000) and a tax liability of BZD $5,000 (BZD $20,000 * 25%).

• Additional Reliefs: Further deductions are available for:

  • Charitable Donations: Up to BZD $250. Original receipts or a letter from the institution are required as proof.
  • Educational Expenses: Up to BZD $400 per child (not your own). Supporting documentation may be required.

Tax Filing and Payment

• TD4 Slip: Employees receive a Statement of Emoluments Paid (TD4 slip) from their employer(s) detailing earnings and deductions.
• Tax Return (BTS203): Employees must file an annual income tax return (Form BTS203) either online or by mail. This form requires the TD4 slip, Social Security card copy, and supporting documents for any claimed deductions. A vendor form with banking information is also needed if a refund is due.
• Deadline: The tax filing deadline is March 31st of the following year, unless an extension is granted by the Commissioner of Income Tax.
• Penalties: Late filing incurs a penalty of 3% of the outstanding tax per month, with a minimum penalty of BZD $10.
• Interest: Unpaid tax after March 31st accrues interest at 1.5% per month until fully paid.
• Refunds: Refunds are issued if the tax paid exceeds the actual tax liability or if tax was withheld from income below the BZD $29,000 threshold.

Employer Responsibilities

Employers in Belize are responsible for withholding income tax from employees' salaries and remitting it to the Belize Tax Service Department (BTSD) monthly, accompanied by Form TD2. Employers are also responsible for issuing TD4 slips to their employees annually. They should register for a Taxpayer Identification Number (TIN) and use the online platform, IRIS Belize, for tax services and transactions.