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Belarus, UAE to build on cooperation in tax administration

Photo courtesy of the Belarusian Ministry of Taxes and Duties

MINSK, 29 March (BelTA) – Belarus and the United Arab Emirates will enhance their cooperation in tax administration. This intention was set out by the protocol on introducing amendments to the double taxation avoidance agreement as of 27 March 2000, BelTA learned from the Belarusian Ministry of Taxes and Duties. 

The protocol was signed by Belarus' Taxes and Duties Minister Sergei Nalivaiko and Undersecretary at the UAE Ministry of Finance Younis Al Khouri in Minsk on 29 March. The document is expected to update the rules regulating tax affairs between the two countries and to help expand and strengthen bilateral economic relations in the interests of the two states.

The protocol specifies the list of taxes that fall within the scope of application of the abovementioned agreement. It also extends the list of companies and organizations that can claim dividend tax credits. The protocol also expands the scope of matters in which tax authorities can exchange information in order to prevent tax evasion and other tax violations. Tax authorities will be able to get information from banks, credit institutions of foreign states and from all other persons who possess the necessary information.

Apart from that, the parties agreed on how profits derived from divestiture should be taxed if real estate accounts for over 50% of a company’s stock. I this case the profits tax will be paid in the country where this real estate is located. However, this does not apply to the profits derived from selling shares on stock exchanges specified in the protocol.

The document will come into force on the first day of the second month following the date when the last notification on completing interstate procedures was received.

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