Regulatory Alerts2019-11-26
Belize Economic Substance Requirements
The Financial Services Commission of Belize issues this flowchart to illustrate the application of the Economic Substance Act to legal entities under Belizean law. The document outlines a decision process to determine if an entity is engaged in a relevant activity and whether it meets specific substance requirements regarding control, management, and physical presence. Entities failing to comply with these requirements or applicable filing obligations are subject to sanctions.
No No Yes No No Yes No No Yes No No Is the legal entity a commercial entity? Is the entity regulated? Substance requirements not applicable Is the entity engaged in a relevant activity? Does the entity provide proof that it is controlled and managed outside of Belize and is tax resident in a jurisdiction other than Belize? Is the entity a PEHC?
- Does the entity conduct its CIGA in Belize?
- Is the relevant activity directed and managed in Belize?
- Are there adequate employees, expenditure and appropriate premises in Belize? Entity meets substance requirements Substance requirements not applicable Substance requirements not applicable Is the entity compliant with applicable laws and filing requirements? Are there adequate employees and premises? Entity meets substance requirements Entity subject to sanctions Belize Economic Substance Requirements This flowchart is issued by the FSC and is intended to provide a high-level illustration of the Economic Substance Act in respect of its application to legal entities under the law of Belize.