On 16 January 2017, officials from Belarus and Hong Kong signed an income and capital tax treaty. The treaty is the first of its kind between the two jurisdictions.
The treaty covers Belarusian tax on income, tax on profits, income tax on individuals, and tax on immovable property. It covers Hong Kong profits tax, salaries tax, and property tax.
The following capital gains derived by a resident of one Contracting Party may be taxed by the other Party:
Gains from the alienation of other property by a resident of a Contracting Party may only be taxed by that Party.
Both jurisdictions apply the credit method for the elimination of double taxation.
Article 27 (Anti-Abuse Rules) includes the provision that a benefit under the treaty shall not be granted in respect of an item of income if it is reasonable to conclude that obtaining that benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit would be in accordance with the object and purpose of the relevant provisions of the treaty.
The treaty will enter into force once the ratification instruments are exchanged, and will apply in Belarus from 1 January of the year following its entry into force and in Hong Kong from 1 April of the year following its entry into force.
We’re here to answer any questions you have about the Orbitax products and services.
We’re committed to providing high value, low cost tax research and management solutions.
Our Twitter account is where you can find latest information, news updates, offers and lots more.