The UK HMRC has released an update regarding the tax treaty with Belarus.
The UK urges Belarus to reverse its suspension of the treaty, and affirms that it remains in effect and that the UK continues to adhere to its terms.
Earlier, Belarus suspended provisions of many of its Double Taxation Agreements by Resolution of the Council of Ministers on 7 March, 2024. This action affects the Double Taxation Agreements of 27 countries including the 2017 UK-Belarus Double Taxation Convention.
The Council Resolution suspends the provisions relating to dividends, interest and capital gains with effect from 1 June, 2024. The same Resolution also introduces discriminatory taxes on dividends and other income in respect of businesses located in one of the 27 countries with effect from 1 April, 2024. This means that Belarus is not honouring agreed limits on what it may tax at source and has placed other restrictions on the conduct of business by non-Belarusians in Belarus.
The UK-Belarus Convention does not permit this unilateral action, and the UK government views this action with utmost seriousness.
