Employees pay up to 45% tax on income plus social contributions. .
Value Added Tax (15%), which provided the Government with 30% of its tax revenue, was abolished in 1999 in favor of a "sales" tax. (1) (6).
Telecommunications are state-of-the-art, but too expensive because of the telecommunications monopoly which is holding back development. Recent moves to open up an e-commerce free zone may have come too late for Belize to catch up with more advanced jurisdictions. Air and sea communications are both good, and it may be that Belize's immediate offshore future lies more in expanding its commercial free zones. (3).
Several laws and investment incentives have been put in motion to stimulate sustained growth in the country's economy. The nation's investment policy welcomes foreign investment that creates new employment, increases production, uses local raw material, and introduces state-of-the-art technology. This paper will identify legislation and investment incentives created in an effort for foreign investors to participate in Belizean offshore investments; provide a brief explanation of why you should invest offshore and provide a brief description of how offshore financing works. .
LEGISLATION AND INVESTMENT INCENTIVES.
Trusts and Asset Protection.
The emphasis in Belize trusts is clearly on asset protection. Belize offers immunity from court action by creditors challenging the settler's disposition of funds to the trust. Belizean trust laws are considered the best in the world. The trust may be created for 120 years and income may be accumulated for a similar period (See Illustration 3). A clear indication of the speed at which the use of offshore jurisdictions has grown is the amount of funds now residing offshore. .
Asset protection is important. It cannot be over-emphasized and is the best defense you can have against creditors and hostile parties. Unprotected assets means that your assets are exposed.