The Government of Belize has further amended the Income and Business Tax Act as it relates to Income Tax (P.A.Y.E.). Under the new amendments, Income and Business Tax (Amendment (No.2) Act, 2010, there are now four (4) distinct taxable thresholds.
Threshold 1 - If your total employment income does not exceed $26,000 the new threshold is $25,600.
Threshold 2 - If your total employment income exceeds $26,000 but does not exceed $27,000 the new threshold is $24,600.
Threshold 3 - If your total employment income exceeds $27,000 but does not exceed $29,000 the new threshold is $22,600.
Threshold 4 - If your total employment income exceeds $29,000 the new is $19,600.
The new Income Tax Amendment is retroactive and effective to January 1, 2010 and replaces the amendment made in early 2010. The Income Tax amendment should result in significant refunds to employees making less than $29,000 for the 2010 basis year. Employers should also take note and amend their payroll accordingly to reflect the new Income Tax (p.a.y.e.) amendment. The Income Tax Department will also have its hands full as new forms and guidelines will have to be developed and implemented to reflect the new Income Tax Amendment.
Wilfred Rhaburn, CPA