Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Double Taxation Relief Manual

From
HM Revenue & Customs
Updated
, see all updates

DT: Belize: double taxation agreement, Article 13: Elimination of double taxation

Paragraph 13(1) was substituted by SI68/573 below

`(1) Subject to the provisions of the law of the United Kingdomregarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof)-

(a) Belize tax payable under the laws of Belize and in accordance with this Arrangement, whether directly or by deduction, on profits or income from sources within Belize shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits or income by reference to which the Belize tax is computed.

Provided that in the case of a dividend the credit shall only take into account such tax in respect thereof as is additional to any tax payable by the company on the profits out of which the dividend is paid and is ultimately borne by the recipient without reference to any tax so payable.

(b) Where a company which is a resident of Belize pays a dividend to a company resident in the United Kingdom which controls directly or indirectly at least 10 per cent of the voting power in the first-mentioned company, the credit shall take into account (in addition to any Belize tax for which credit may be allowed under (a) of this sub- paragraph) the Belize tax payable by that first-mentioned company in respect of the profits out of which such dividend is paid.
Paragraph 13(1A) was inserted by SI73/2097 below

(1A) For the purposes of sub-paragraph (1) of this Paragraph, the term `Belize tax payable` shall be deemed to include any amount which would have been payable as Belize tax for any year but for an exemption or reduction of tax granted for that year or any part thereof under:

(a) the provisions of the Development Incentives Ordinance, 1960, so far as it was in force on, and has not been modified since, the date when this Supplementary Arrangement came into force, or has been modified only in minor respects so as not to affect its general character; or

(b) any other provision which may subsequently be made granting exemption or reduction of tax which is agreed by the taxation authorities of the United Kingdom and Belize to be of a substantially similar character, if it has not been modified thereafter or has been modified only in minor respects so as not to affect its general character.`
Paragraph 13(2) was substituted by SI68/573 below

(2) Subject to the provisions of the law of Belize regarding the allowance as a credit against Belize tax of tax payable in a territory outside Belize (which shall not affect the general principle hereof)-

(a) United Kingdom tax payable under the laws of the United Kingdom and in accordance with this Arrangement, whether directly or by deduction, on profits or income from sources within the United Kingdom shall be allowed as a credit against any Belize tax computed by reference to the same profits or income by reference to which the United Kingdom tax is computed.

Provided that in the case of a dividend the credit shall only take into account such tax in respect thereof as is additional to any tax payable by the company on the profits out of which the dividend is paid and is ultimately borne by the recipient without reference to any tax so payable.

(b) Where a company which is a resident of the United Kingdom pays a dividend to a company resident in Belize which controls directly or indirectly at least 10 per cent. of the voting power in the first-mentioned company, the credit shall take into account (in addition to any United Kingdom tax for which credit may be allowed under (a) of this sub-paragraph) the United Kingdom tax payable by that first-mentioned company in respect of the profits out of which such dividend is paid.

(3) For the purposes of this paragraph profits or remuneration for personal (including professional) services performed in one of the territories shall be deemed to be income from sources within that territory, and the services of an individual whose services are wholly or mainly performed in ships or aircraft operated by a resident of one of the territories shall be deemed to be performed in that territory.

(4) Where Belize income tax is payable for a year for which this Arrangement has effect in respect of any income in respect of which United Kingdom income tax is payable for a year prior to the year beginning on the 6th April, 1947, then-

(a) in the case of a person resident in Belize, the United Kingdom tax shall, for the purposes of sub-paragraph (2) of this paragraph, be deemed to be reduced by the amount of any relief allowable under the provisions of Section 27 of the United Kingdom Finance Act, 1920; and

(b) in the case of a person resident in the United Kingdom, the provisions of Section 47 of the Belize Income Tax Ordinance, 1923, as amended by the Income Tax (Amendment) Ordinance, 1944, shall apply for the purposes of the allowance of relief from the Belize tax.