<p>Belarus-Ecuador Income and Capital Tax Treaty Available</p>

Belarus-Ecuador Income and Capital Tax Treaty Available

<p>Tax Analysts has obtained the English text of the Belarus-Ecuador income and capital tax treaty signed January 27, 2016, in Minsk.</p> <p>This is the first agreement of its kind between the two countries. The treaty entered into force August 16, 2017, and applies from January 1, 2018. It stipulates that dividends are taxable at a maximum rate of 5 percent if the beneficial owner is a company (other than a partnership) that directly holds at least 25 percent of the capital of the payer company. A 10 percent rate applies in other cases.</p> <p>Interest and royalty payments are subject to a 10 percent withholding rate. However, interest is exempt from taxation if the beneficial owner is the government or its local authorities, a central bank, or any financial institution owned by the government of the other contracting state, the list of which may be agreed on periodically between the governments or competent authorities of the contracting states.</p> <p>Belarus uses the credit method to eliminate double taxation, while Ecuador uses a modification of the credit and exemption methods.</p>

<p><a href="/lr/resolve/-/1x4k1" title=" ">Russian text</a>; <a href="/lr/resolve/-/1x4k2" title=" ">Spanish text</a>. <a href="/lr/resolve/-/1wdyy" title=" ">Prior coverage</a>.</p>

<p>Tax Analysts has obtained the English text of the Belarus-Ecuador income and capital tax treaty signed January 27, 2016, in Minsk.</p>

Tax Analysts has obtained the English text of the Belarus-Ecuador income and capital tax treaty signed January 27, 2016, in Minsk. This is the first agreement of its kind between the two countries. The treaty entered into force August 16, 2017, and applies from January 1, 2018. It stipulates that dividends are taxable at a maximum rate of 5 percent if the beneficial owner is a company (other than a partnership) that directly holds at least 25 percent of the capital of the payer company. A 10 percent rate applies in other cases. Interest and royalty payments are subject to a 10 percent withholding rate. However, interest is exempt from taxation if the beneficial owner is the government or its local authorities, a central bank, or any financial institution owned by the government of the other contracting state, the list of which may be agreed on periodically between the governments or competent authorities of the contracting states. Belarus uses the credit method to eliminate double taxation, while Ecuador uses a modification of the credit and exemption methods.

<h4>Rate Table Instructions</h4> <ul> <li>You must enter a rate for each rate type</li> <li>Enter only one rate value per row</li> <li>You may leave the country columns blank if the rate is the same for both countries</li> <li>Country names (if entered) must exactly match the jurisdictions</li> <li>Leave the Partner Country column blank if you want the rate to apply to all partners of the Main Country</li> <li>Enter "n/a" in each rate row to hide the partner in the Main Country table</li> <li>Note that the same rates may apply for Main Country and Partner Country or the Main Country may apply different rates to the Partner Country</li> </ul> <table> <tbody> <tr><th> <div>Rate Type</div> (Dividends, Interest, Royalties)</th><th>Main Country</th><th>Partner Country</th><th>Rate</th><th>Footnote 1</th><th>Footnote 2</th><th>Footnote 3</th><th>Footnote 4</th></tr> <tr> <td>Dividends</td> <td> </td> <td> </td> <td>5/10 </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td>Interest</td> <td> </td> <td> </td> <td>10 </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td>Royalties</td> <td> </td> <td> </td> <td>10 </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> </tbody> </table>

Belarus - Ecuador: 2016 Income and Capital Tax Agreement and Final Protocol

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Belarus-Ecuador Income and Capital Tax Treaty Available