Ukraine will terminate its tax agreement with Belarus.

The Cabinet of Ministers approved a draft law on the termination of the intergovernmental agreement between Ukraine and Belarus on double taxation and the prevention of tax evasion, which has been in effect since 1994, the Ministry of Finance reported. Terminating this agreement will accelerate the collapse of economic and financial ties with Belarus, given its status as an ally of the aggressor country in the war against Ukraine. In particular, after the termination of the agreement, a general tax rate of 15% will be applied to all income of Belarusian citizens received in Ukraine instead of the preferential rate of 10% that had  been established in the agreement. It will also protect Ukraine’s budget from losses due to credits that had been given for tax paid in Belarus by residents of Ukraine working in Belarus.