Regulatory Alerts2022-01-21
Declaration of Intellectual Property Grandfathering Compliance
The Financial Services Commission of Belize mandates that all International Business Companies incorporated on or before October 16, 2017, submit a Declaration of Intellectual Property Grandfathering Compliance. This requirement ensures adherence to legal restrictions prohibiting such entities from engaging in relevant activities or holding intellectual property assets while seeking tax exemption benefits. The completed declaration must be routed through registered agents and submitted to the Commission via email within sixty days of the guidance note's publication.
1 GUIDANCE NOTE Declaration of Intellectual Property Grandfathering Compliance FSC/2/GN/011 For the attention of all Licensees and International Business Companies (IBCs): Licensees and IBCs are aware that under current law1–
- An IBC that was incorporated on or before 16th October 2017, engages in a relevant activity or a new asset that was acquired after 16th October 2017 is not eligible to benefit from the tax exemption saved up to 30th June 2021;
- If an IBC was incorporated on or after 17th October 2017, that company is not eligible to benefit from tax exemption existing prior to the commencement of the International Business Companies Act Chapter 270 of the Substantive Laws of Belize, Revised Edition, 2020 which was saved up to 30th June 2021; and
- An IBC must not acquire, hold, own or deal with any intellectual property (IP) asset. In the circumstance, measures have been adopted to ensure IBCs ongoing compliance with the aforementioned legal mandates. Therefore, the Commission hereby advises all Licensees and IBCs that it has published the Declaration of Intellectual Property (IP) Grandfathering Compliance (the “Declaration”) which must be completed by all IBCs incorporated on or before 16th October 2017. The Declaration must be submitted to the Commission within sixty days (60) days upon the publication of this Guidance Note and may be subject to confirmation. The Declaration must be routed through their respective Registered Agent for submission to the Commission via email address, complianceandinspections@belizefsc.org.bz. Licensees and IBCs must ensure to only utilize the Commission’s prescribed Declaration upon submission to the Commission. For ease of reference, a sample Declaration is attached t0 this Guidance Note. 1 International Business Companies Act Chapter 270 of the Substantive Laws of Belize, Revised Edition, 2020
2 Licensees and IBCs are also encouraged to contact the Commission via complianceandinspections@belizefsc.org.bz with queries in respect to this directive. FINANCIAL SERVICES COMMISSION 27th January 2022
3 Attachment: Sample Declaration
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