The government on Wednesday approved the suspension of a double tax avoidance agreement between Romania and Belarus that also provided for the prevention of tax evasion with regard to income and capital taxes.
According to the Romanian government, the new piece of legislation calls for the total suspension of the application of the provisions of the agreement and an annexed protocol signed in Bucharest on July 22, 1997 and ratified on May 26,1998.
"The Romanian party's proposal comes in reaction to the decision of the Belarusian government to suspend, from June 1, 2024 to December 31, 2026, three articles of the agreement relating to dividends, interest and capital gains. The decision of the Belarusian party was notified to the Romanian party on March 22, 2024. The reason given by the Belarusian side is the need to adopt a countermeasure to the 'unilateral coercive measures illegally imposed, in a coordinated manner, by the EU, US, UK and their allies against Belarus, outside the UN charter'."
Romania believes that there is no legal basis for the suspension measure and that Belarus supports the same sanctioning line adopted by Russia as a result of Romania's position towards the Russian aggression in Ukraine.
"Thus, Belarus is in substantial violation of its obligations under the agreement and, as a consequence, Romania will notify Belarus of the full suspension of the application of the bilateral agreement. The date of termination of the suspension of the agreement by Romania will be January 1, 2027, unless Belarus notifies by then another date regarding keeping the suspension of the agreement in place, other than the one mentioned in its notification of March 22, 2024," according to the government
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