Opinions & Interviews

MINSK, 27 January (BelTA) - Belarus and Ecuador have taken measures to strengthen economic cooperation, Belarusian Taxes and Duties Minister Sergei Nalivaiko said following the singing of the Belarusian-Ecuadorian intergovernmental agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and property, BelTA has learned.

On behalf of Ecuador the document was signed by Ambassador Extraordinary and Plenipotentiary of Ecuador to Belarus Carlos Larrea Davila.

Sergei Nalivaiko noted that the agreement is aimed at regulating the fiscal relations between the two countries and promoting the development of trade and economic cooperation on mutually beneficial terms. The main objectives of the document are to distribute the taxation rights between the states, avoid double taxation, and to establish the exchange of information between the tax authorities of Belarus and Ecuador. The agreement establishes the procedure for the payment of income tax on natural persons, income tax, tax on profits and real estate.

The minister stressed that under the national law the listed types of income are subject to taxation in Belarus. At the same time, the agreement may set different tax treatment depending on the type of activity and type of income of a payer. Thus, the rates of taxes under the tax agreement with Ecuador have been reduced in comparison with the taxes established in Belarus: on dividends - from 12% to 5% (if the share of an investor in the capital is more than 25%), and 10% in all other cases.

The agreement shall enter into force on the day of receipt of the last notification that the parties fulfilled their respective requirements for the agreement to enter into force. Sergei Nalivaiko is convinced that this document will have a significant favorable impact on the interaction between Belarus and Ecuador.