The Diplomat
The Official State Gazette (BOE) published last Tuesday the Agreement between Spain and Belarus to avoid double taxation and prevent tax evasion in income and wealth taxes, which will replace the previous Soviet-era agreement and will enter into force next May 9.
Tax relations between the two countries had been governed until now by the Agreement between the Government of Spain and the Government of the Union of Soviet Socialist Republics (USSR) on this matter, signed in Madrid on March 1, 1985.
Therefore, Belarus and Spain exchanged in April and September 2008, respectively, their model treaties to avoid double taxation, prior to a single round of negotiations that took place in Madrid from November 3 to 6, 2008. However, and although the Council of Ministers had authorized the signing of this instrument on December 16, 2011, the state of Belarus’ relations with the European Union stalled the signing in the following years.
Finally, the Agreement was signed in Madrid on June 14, 2017 by the respective Ministers of Foreign Affairs, Alfonso Dastis and Vladimir Makei. This was possible after noting a certain improvement in the field of public freedoms and the rule of law, which led in February 2016 to the lifting of most of the restrictive measures implemented by the European Union and the activation of cooperation initiatives in different areas.
The Convention was approved and sent to Parliament in June 2020 and the text was voted by the two Chambers between the end of September and October, coinciding with the imposition of new EU restrictive measures against the regime of Aleksandr Lukashenko in response to the fraudulent nature of the presidential elections of August 2020 and the intimidation and violent repression against peaceful demonstrators, members of the opposition and journalists.
