Georgia: Treaty analysis: Georgia-Belarus double tax treaty enters into force
International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX
Copyright © Legal Benchmarking Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Georgia: Treaty analysis: Georgia-Belarus double tax treaty enters into force


Anna Pushkaryova

On April 23 2015 Georgia and Belarus signed an agreement on avoidance of double taxation, prevention of evasion of income and capital taxes (DTT). The DTT applies to profit tax, income tax and property tax in Georgia and the tax on income, tax on profits, income tax on individuals and tax on immovable property in Belarus.

Among other provisions, the DTT stipulates, in particular, the following:

  • The profits of a company resident in one state will be taxable in that state only, unless the company has a permanent establishment (PE) in the other state, in which case the profits of said company may be taxed in that other state if attributable to that PE. The DTT determines PE as, in particular, a building site or construction or installation project lasting more than 12 months. The treaty also contains a number of exceptions when an enterprise shall not be deemed to have a PE;

  • A withholding tax on dividends at the rate of 5% (in case of at least 25% participation in the company paying the dividends) and at the rate 10% in all other cases;

  • A withholding tax rate of 5% on interest;

  • A withholding tax rate of 5% on royalties;

  • Income derived by a resident of one state from immovable property (including income from agriculture or forestry) located in the other state may be taxed in that other state;

  • Gains realised by a resident of one state from the alienation of shares or other participation interests of which more than 50 % of the value is derived directly or indirectly from immovable property situated in the other state, may be taxed in that other state.

According to the DTT, double taxation will be eliminated by applying a deduction from the tax of the Georgian resident in amount of the tax paid in Belarus and vice versa.

The DTT was ratified by Georgia on June 12 2015 and by Belarus on November 10 2015. Per the treaty's provisions, it entered into force on November 24 2015 and is effective as of January 1 2016.

Anna Pushkaryova (

Eurofast Georgia

Tel: +995 595 100 517


more across site & bottom lb ros

More from across our site

Australian advisers should tread carefully when using new reporting obligations to complain about peers, Tax Practitioners’ Board chairman Peter de Cure tells ITR in an exclusive interview
As German clients attempt to comply with complex cross-border rules, local advisers argue that aggressive tax authorities are making life even harder
Based on surveys covering more than 25,000 in-house lawyers, the series provides insights into what law firms must score highly on when pitching to in-house counsel
The UK tax authority reportedly lost a case due to missing a deadline; in other news, Canada has approved pillar two legislation
There will always be multinationals trying to minimise tax by pushing the boundaries of their cross-border arrangements, Rob Heferen claimed
HMRC’s attempts to crack down on fraudulent tax relief claims are well-meaning, but the agency risks penalising genuinely innovative businesses, writes Katy Long of ForrestBrown
Argentina, Brazil, Mexico and South Africa are among the countries the OECD believes could benefit from the simplified TP rules
It comes despite an offshore enabler penalty existing in the UK throughout the entire period
It is extraordinary that tax advisers in the UK can offer their services without having to join a professional body. This looks like it is coming to an end, Ralph Cunningham writes
Meet the esteemed judges who are assessing the first-ever Social Impact Awards
Gift this article