Israel – Belarus Tax Treaty

ישראל - בלארוס אמנת מס

Israel – Belarus Tax Treaty

Tax aspects of Israel - Belarus

In the past, Belarus had a Soviet industrial base. Today, Belarus is a totalitarian state with a strong centralized authority controlled by Russia. The nation has confronted numerous economic challenges over the years but has displayed resilience in overcoming them. With the dissolution of the Soviet Union, Belarus began to change its economic model towards a market economy. However, these changes have been slow and limited due to the centralized government’s heavy intervention in the market.

The Belarusian economy is primarily based on heavy industry (metals, machinery, and heavy equipment, chemicals), the energy sector, and the agricultural sector. Since the start of the Russia-Ukraine war and Putin’s influence in Belarus, it has effectively become a Russian-sponsored state, which is how Western countries perceive it. The Belarusian government does not promote a conducive environment for Western investments, given its significant reliance on funding from Russia and China. As a result, due to the sanctions imposed on Belarus, business activities between Israel and Belarus are not advisable.

For more information on the sanctions imposed on Belarus, you can read on Russia’s page.

Agreements between Israel and Albania

  1. Investment encouragement and protection agreement;
  2. Tax treaty for the Prevention of Double Taxation.

Investment encouragement and protection agreement

In 2003, a bilateral agreement between Israel and Belarus came into effect with the aim of providing legal protection for non-commercial investment activities by investors. The purpose of the agreement is to encourage mutual investments by Israelis by creating a favorable and secure investment climate.

You can find a link to the agreement in English on the Ministry of Finance website here.

Tax Treaty for the Prevention of Double Taxation between Israel and Belarus

A convention to prevent double taxation is a bilateral agreement in which two countries, parties to the agreement, establish the tax principles that will apply to income and assets with connections to both countries. Additionally, these conventions include principles for the exchange of information between the countries. The double taxation convention between Israel and Belarus was signed in 2000 and came into effect on January 1, 2004.

You can find a link to the agreement in English on the Ministry of Finance website here.

Applicability of the MLI

The MLI is an automatic mechanism for amending bilateral tax treaties, which will only apply when both countries sign the multilateral treaty and confirm its application in their domestic law.

As of november 2023, Belarus did not sign the multilateral convention.

You can read the full text of the convention in Hebrew by clicking here. The English text can be found here.

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