The income and capital tax treaty between Spain and Belarus will enter into force on 9 May 2021. The treaty was signed on 14 June 2017 and, once in force and effective, replaces the 1985 tax treaty between Spain and the former Soviet Union as it applies in respect of Belarus and Spain.
The treaty covers Belarussian tax on income, tax on profits, income tax on individuals, and tax on immovable property (real estate tax). It covers Spanish income tax on individuals, corporation tax, income tax on non-residents, capital tax, and local taxes on income and on capital.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Both countries apply the credit method for the elimination of double taxation.
The final protocol to the treaty includes certain limitation on benefits provisions, including that the provisions of Articles 10 (Dividends), 11 (Interest), and 12 (Royalties) will not apply if the main purpose or one of the main purposes of any person concerned with the creation or assignment of the shares, debt-claims, or other rights in respect of which the dividends, interest, or royalties are paid was to take advantage of those Articles by means of that creation or assignment.
The treaty generally applies from the date of its entry into force, although Articles 24 (Mutual Agreement Procedure) and 25 (Exchange of Information) apply in relation to any relevant matters even if pre-existing on the date the treaty enters into force. Once the treaty is in force and effective, the 1985 tax treaty between Spain and the former Soviet Union ceases to apply in respect of Belarus and Spain.