Belarusian President Alexander Lukashenko signed a law on Tuesday, 21 May, 2024, ratifying the pending income and capital tax treaty with Equatorial Guinea.
Signed on 9 December, 2023, this tax treaty is the first of its kind between the two nations.
The tax treaty includes a range of taxes for Belarus and Equatorial Guinea. For Belarus, it includes income tax, corporate profits tax, individual income tax, and real estate tax. In Equatorial Guinea, it covers corporate income tax, tax on movable and immovable property, property tax, and payroll tax.
The tax treaty will take effect once the ratification instruments are exchanged and will be applicable from 1 January of the year following its enactment.
Withholding Tax Rates
- Dividends: 10%
- Interest: 10%
- Royalties: 7%
Capital Gains
Capital gains realised by a resident of one Contracting State may be subject to taxation by the other State for:
- Gains from the sale of immovable property located in the other State.
- Profits from the sale of other property by a resident of a Contracting State can only be taxed by that State.
- Gains from the disposal of shares in a company that is a resident of the other State, with the exception of shares traded on the Belarusian Currency Stock Exchange or other exchanges as agreed between the competent authorities of the Contracting States.
Double Taxation Relief
Both countries will utilise the credit method to eliminate double taxation.