Belarus-Hong Kong double taxation agreement comes into force

MINSK, 4 December (BelTA) – The double taxation agreement between Belarus and Hong Kong, a special administrative region of China, has come into effect, BelTA learned from the Belarusian Embassy in Beijing.

“After Belarus and China went through the necessary domestic procedures, the Belarus-Hong Kong agreement on the avoidance of double taxation and prevention of income and capital tax evasion came into force on 30 November 2017,” the embassy said.

The document was signed following the negotiations between Belarusian First Deputy Prime Minister Vasily Matyushevsky and the then Chief Executive of Hong Kong Leung Chun-ying during the visit of a Belarusian government delegation in January 2017. The sides defined the avenues of cooperation in investments, finance, trade, economy, and tourism.

In line with the agreement, the withholding tax rate on dividends and interest is capped at 5%, the withholding tax rate on royalties makes up from 3 to 5%. According to specialists, this will enable favorable conditions for cooperation in the financial sector and will intensify Belarus-Hong Kong trade and economic cooperation.