Belarus ratifies tax treaty with Hong Kong

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On 3 May 2017, the government of Belarus ratified the agreement with Hong Kong for the avoidance of double taxation. The agreement was signed on 16 January 2017 and was adopted by the Belarus House of Representatives on April 19, 2017. The agreement was approved by the Belarus Council of Republic on April 21, 2017.

Under the agreement, double taxation will be avoided using the credit method. Any Belarus tax paid by Hong Kong companies will be allowed as a credit against the tax payable in Hong Kong on the same profits, subject to the provisions of the tax laws of Hong Kong. Likewise, for Belarus companies, the tax they paid in Hong Kong will be allowed as a credit against the tax payable on the same income in Belarus.

Under the agreement, the withholding tax rate on dividends will be limited to 5% (currently at 12 per cent for companies and 13 per cent for individuals) of the gross amount. Interest will be capped at 5% (currently at 10 per cent for companies and 13 per cent for individuals). The withholding tax rate on royalties will be at 5 per cent (currently at 15 per cent for companies and 13 per cent for individuals) and it will be further reduced to 3 per cent if the royalties are for the use of, or the right to use, aircraft.

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