Under a signed new double tax agreement Hong Kong and Belarus have agreed to lower withholding tax rates on cross-border income.

Any Belarusian tax paid by Hong Kong companies will generally be allowed as a credit against the tax payable in Hong Kong on the same profits, and vice versa for Belarusian companies in Hong Kong.

In addition, Belarus’s withholding tax rate for Hong Kong residents on royalties, dividends and interest will be capped at five per cent.

Belarus sourced profits from international shipping transport earned by Hong Kong residents will be tax-free in Belarus. The double taxation agreement between two states will come into force after the ratification on both sides.