Belize News, Reporter.bz

 Breaking News
  • A Closer Look At The Plan To Create A New LPG Gas Consortium The Energy Dollars in Your Kitchen Thursday, August 22nd. 2019 – By Neri Briceno – Much of Friday’s house meeting was spent chatting about China. Apart from the 50 million...
  • Is Barrow Leaving Earlier Than Expected? The United Democratic Party (UDP) announced during its National Party Council meeting on Saturday that it will hold its National Leadership Convention on Sunday, February 9, 2020. At the event...
  • Massive Croc Grabs Tourist Renee Dessommes, 39, a tourist who had been enjoying the sun, sea and sand in San Pedro, almost met her death when a 12-foot long crocodile attacked her in the...
  • DOE Fingers BSI/ASR for Pollution in New River The Department of the Environment (DOE) has issued a release noting that they will be meeting with key industrial and commercial facilities along the New River including the Belize Sugar...

Belize Signs Landmark Tax Treaty

Belize Signs Landmark Tax Treaty
January 18
12:37 2019

Belize recently signed on to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS), a convention by the Organization for Economic Co-operation and Development (OECD) meant to prevent multinational enterprises from avoiding their tax obligations.

Belize is now the 86th jurisdiction to join the convention, which covers almost 1,500 bilateral tax treaties. The Convention is the first multilateral treaty of its kind, allowing jurisdictions to integrate results from the OECD/G20 BEPS Project into their existing networks of bilateral tax treaties. The convention delivers solutions for governments to close the gaps in existing international rules that allow corporate profits to “disappear” or be artificially shifted to low or no tax environments, where companies have little or no economic activity.

Treaty shopping, as it is called, in particular, is estimated to reduce the effective withholding tax rate by more than 5 percentage points from nearly 8% to 3%, generating large revenue losses for developed and developing countries alike.

The convention, negotiated by more than 100 countries and jurisdictions under a mandate from the G20 Finance Ministers and Central Bank Governors, is one of the most prominent results of the OECD/G20 BEPS Project. It is the world’s leading instrument for updating bilateral tax treaties and reducing opportunities for tax avoidance by multinational enterprises.

Measures included in the convention address treaty abuse, strategies to avoid the creation of a “permanent establishment”, and hybrid mismatch arrangements. The Convention also enhances the dispute resolution mechanism, especially through the addition of an optional provision on mandatory binding arbitration, which has been taken up by 28 jurisdictions. The convention was signed on Belize’s behalf by Financial Secretary Joseph Waight.

. . . . . . . . . . . . . . . . . .

Related Articles

search bar

Sunbright Ad
Sunbright Ad

THE MADE IN BELIZE SHOW