The Cabinet of Ministers of Ukraine has approved the draft law on the termination of the Agreement between the Government of Ukraine and the Government of the republic of belarus on the avoidance of double taxation and prevention of fiscal evasion regarding income and property taxes, made on December 24, 1993, in Ashgabat and ratified by the Verkhovna Rada of Ukraine on December 20, 1994.
The draft law is aimed to denounce the international intergovernmental agreement with the republic of belarus, thereby contributing to the acceleration of cutting off economic and financial ties with the republic of belarus as an ally of the aggressor country in a full-scale war against Ukraine.
The adoption of the law will allow Ukraine to stop the application of the norms established by the said Agreement, which will facilitate the following:
1) putting an end to the replenishment of the budget of the country contributing to the aggressor through providing by Ukraine of preferential tax conditions for residents of the republic of belarus carrying activities in Ukraine. After the termination of the Agreement, the general tax rate of 15%, established by the Tax Code, will be applied to all incomes of residents of the republic of belarus, received from sources in Ukraine, instead of the preferential rate established by the Agreement: 10% - on interest;
2) prevention of losses to the budget of Ukraine due to the crediting of tax paid in the republic of belarus by residents of Ukraine carrying out activities in the republic of belarus;
3) discharge of Ukraine from its obligations regarding the exchange of information with the republic of belarus on tax issues.