Tax is withheld at the rate of 12% on capital gains realized by non-residents from the sale of shares in Belarusian companies. Effective 1 January 2021 until 31 December 2024, a reduced tax rate of 6% applies for 3 years starting from the first calendar year in which the gains are derived, for capital gains derived from the alienation of equity interests in the charter capital of Belarusian investment funds and bonds of such funds.

The following capital gains derived by a resident of one Contracting State may be taxed by the other State under the 2017 tax treaty which is effective from 9 May 2021:

• Gains from the alienation of immovable property situated in the other State;
• Gains from the alienation of movable property forming part of the business property of a permanent establishment in the other State;
• Gains from the alienation of shares or other comparable rights deriving more than 50% of their value directly or indirectly from immovable property situated in the other State; and
• Gains from the alienation of shares or other rights that directly or indirectly entitle the owner of such shares or rights to the enjoyment of immovable property situated in the other State.

Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.

Tax is withheld at the rate of 15% (increased from 12% effective 1 January 2023) from gross dividends distributed to non-residents. A 5% withholding tax applies if the payer is a Belarusian resident in the High Technology Park.

The withholding tax rate on dividends under the new 2017 tax treaty (effective 9 May 2021) is:

• 0% if the beneficial owner is a company that directly controls at least 10% of the paying company's capital and the participation is at least EUR 1 million;
• 5% if the beneficial owner is a company that directly controls at least 10% of the paying company's capital (and the participation is not at least EUR 1 million); or
• Otherwise, 10%.

Under the earlier 1985 tax treaty, the withholding tax rate on dividends was 18%.

Tax is withheld at the rate of 10% from gross interest paid to non-residents. A 5% withholding tax applies if the payer is a Belarusian resident in the High Technology Park. Effective 1 January 2021 until 31 December 2024, a reduced rate of 6% applies for 3 years starting from the first calendar year in which the income was received, for income from debt obligations derived from investment funds in Belarus.

The withholding tax rate on interest is 5% under the new 2017 tax treaty which is effective from 9 May 2021 (the rate was 0% under the earlier 1985 tax treaty) with an exemption where the recipient or payer of the interest is a Contracting State, the interest is paid on a loan guaranteed by a Contracting State, or the recipient is a financial institution or approved pension fund.

Tax is withheld at the rate of 15% from gross royalties paid to non-residents. A 5% withholding tax applies if the payer is a Belarusian resident in the High Technology Park.

The withholding tax rate on royalties is 5% under the new 2017 tax treaty which is effective from 9 May 2021 (the rate was 0% for copyright royalties, excluding films and otherwise, 5% under the earlier 1985 tax treaty).

Tax is withheld at the rate of 15% from gross royalties paid to non-residents. A 5% withholding tax applies if the payer is a Belarusian resident in the High Technology Park.

The withholding tax rate on royalties is 5% under the new 2017 tax treaty which is effective from 9 May 2021 (the rate was 0% for copyright royalties, excluding films and otherwise, 5% under the earlier 1985 tax treaty).

Tax is withheld at the rate of 15% from gross royalties paid to non-residents. A 5% withholding tax applies if the payer is a Belarusian resident in the High Technology Park.

The withholding tax rate on royalties is 5% under the new 2017 tax treaty which is effective from 9 May 2021 (the rate was 0% for copyright royalties, excluding films and otherwise, 5% under the earlier 1985 tax treaty).

The rate shown is based on physical sales which typically do not attract a withholding tax. Note, however, that more and more countries apply various types of taxes to "digital transactions" and similar. Belarus specifically provides for a withholding of digital services tax at the rate of 15% and VAT at the standard rate of 20% on supplies provided through a digital marketplace in Belarus. For details of such taxes in Belarus, see Sec. 8.2.2. and Sec. 11.2. in Belarus Analysis chapter.

Tax is withheld at the rate of 15% on payments made by a Belarus resident for management services performed outside of Belarus by a non-resident without a Belarus permanent establishment.

The new 2017 treaty as well as the old 1985 treaty between Spain and the former Soviet Union do not specifically deal with technical, management and similar service fees. In line with the OECD Model, this means that said services do not fall under the royalty article and do not attract the royalty withholding tax provided for under the treaty unless the services represent a minor part of a commingled transaction imparting in essence know-how. In that case, the services would follow the qualification of the principal component of the transaction, and may then attract the royalty withholding tax under the treaty. Otherwise, said services may be taxed in the source country only if the recipient has therein a (services) PE and the fees are attributable to that PE. Note, however, that not all countries would adhere to the OECD standpoint. ORBITAX has by default opted for the OECD position and the withholding tax rate is by default set to zero where the treaty does not specifically deal with technical, management and similar service fees. Where the relevant country has a developed policy regarding the treatment of technical, management and similar service fees and the correlation between those and royalties, ORBITAX has sought to cover this in Sec. 5.6. of the country chapters (Qualification of Specific Income Categories for Tax Purposes).

Tax is withheld at the rate of 15% on payments made by a Belarus resident for technical services performed outside of Belarus by a non-resident without a Belarus permanent establishment.

The new 2017 treaty as well as the old 1985 treaty between Spain and the former Soviet Union do not specifically deal with technical, management and similar service fees. In line with the OECD Model, this means that said services do not fall under the royalty article and do not attract the royalty withholding tax provided for under the treaty unless the services represent a minor part of a commingled transaction imparting in essence know-how. In that case, the services would follow the qualification of the principal component of the transaction, and may then attract the royalty withholding tax under the treaty. Otherwise, said services may be taxed in the source country only if the recipient has therein a (services) PE and the fees are attributable to that PE. Note, however, that not all countries would adhere to the OECD standpoint. ORBITAX has by default opted for the OECD position and the withholding tax rate is by default set to zero where the treaty does not specifically deal with technical, management and similar service fees. Where the relevant country has a developed policy regarding the treatment of technical, management and similar service fees and the correlation between those and royalties, ORBITAX has sought to cover this in Sec. 5.6. of the country chapters (Qualification of Specific Income Categories for Tax Purposes).