Belize

Belize considers cryptocurrencies legal and generally treats them as property or intangible assets, not as legal tender. There is no specific legal framework dedicated to crypto, meaning general tax laws apply. The International Financial Services Commission (IFSC) regulates crypto businesses such as exchanges, requiring them to obtain a license. The Income Tax Department (ITD) under the Ministry of Finance governs crypto taxation in Belize, operating primarily under the Income and Revenue Taxes Act and the Business Taxes Act. The Central Bank of Belize also provides oversight for financial regulations related to crypto activities. Belize operates a territorial tax system. For individuals and International Business Companies (IBCs), income and capital gains derived from foreign sources are generally not taxable. However, any crypto-related income or gains originating within Belize are subject to tax. Individual income tax applies at progressive rates up to 25% for local-sourced income. There is no specific capital gains tax, instead, capital gains are treated as ordinary income if locally sourced, also subject to rates up to 25%. There are no reduced tax rates or exemptions for long-term crypto holdings. Local corporate entities face a 1.75% business tax on gross receipts, while IBCs are exempt on foreign-sourced income, including crypto. A General Sales Tax (GST) of 12.5% applies to goods and services purchased with crypto if the transaction occurs locally, but not to crypto transfers themselves. Converting crypto to fiat or swapping one crypto for another is not taxable if the gain is foreign-sourced, if local-sourced, such transactions are considered taxable events. Specific crypto activities also follow this territorial principle. Rewards from staking, income from mining, and yields from Decentralized Finance (DeFi) activities are generally not taxed if they are foreign-sourced. If these activities are deemed local-sourced, the proceeds are treated as ordinary income subject to the progressive tax rates. For mining, business deductions may be allowed for local-sourced operations. Non-Fungible Token (NFT) sales are treated similarly, they are not taxable if foreign-sourced, but potentially subject to income tax if local-sourced. Specific guidance on the exact timing of taxation for staking, the scope of deductions for mining, and the precise treatment for complex DeFi activities and NFTs is not extensively detailed in current Belizean law, requiring interpretation under general tax principles.