Belarus, Kazakhstan update double taxation agreement
Belarus and Kazakhstan introduced amendments and additions to the intergovernmental double taxation agreement and thus updated the tax legislation, Belarus’ Taxes and Duties Minister Sergei Nalivaiko said after a ceremony to sign the protocol, BelTA has learned.
The matter is about the protocol between the governments of Belarus and Kazakhstan on amendments and additions to the intergovernmental agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and property (as of 11 April 1997).
“Over the past 20 years business and technologies have made leaps and bounds in their development. Certainly, the tax laws should not lag behind. We updated the provisions of the tax legislation to bring it up to date,” Sergei Nalivaiko said. He drew attention to the fact that the innovations will allow law-abiding business entities to work comfortably in Belarus and Kazakhstan.
The protocol was signed by the Belarusian Taxes and Duties Minister. On behalf of Kazakhstan the document was sealed by the signature of the Ambassador Extraordinary and Plenipotentiary of Kazakhstan to Belarus, the Permanent Representative of Kazakhstan to the statutory and other bodies of the CIS Yergali Bulegenov.
The press service of the Taxes and Duties Ministry explained that in general, the document is aimed at resolving certain issues on taxation of incomes and property which arose in the course of the practice of application of the agreement.
For example, the protocol on amendments clarified certain terms and settled the order of taxation of incomes derived from the alienation of securities of a company. This applies to the situations where more than 50% of the cost of capital of a company is real estate (in this case, the income tax is levied in the state where the immovable property is located).
Also, the protocol has updated the name of the competent authority and brought the list of taxes in respect of which the agreement shall apply into conformity with the applicable legislation of the states.
“The protocol will improve the administration of the intergovernmental agreement. It creates a legal framework for the exchange of information by the tax authorities, ensures effective monitoring of how payers honor the tax legislation,” the Taxes and Duties Ministry said.
The protocol will enter into force on the date of receipt of the last notification on the completion of the domestic procedures by the parties.
