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Georgia/January 2016 On 23 April 2015 Georgia and Belarus signed an agreement on avoidance of double taxation, prevention of evasion of income and capital taxes (“DTT”). The DTT applies to profit tax, income tax and property tax in Georgia and the tax on income, tax on profits, income tax on individuals and tax on immovable property in Belarus. Among other provisions, the DTT stipulates, in particular, the following: •the profits of a company resident in one state will be taxable only in that state unless the company has a permanent establishment (“PE”) in the other state, in which case the profits of said company may be taxed in that other state if attributable to that PE. The DTT determines PE as, in particular, a building site or construction or installation project lasting more than 12 months. The Treaty also contains a number of exceptions when an enterprise shall not be deemed to have a PE; •a withholding tax on dividends at the rate of 5% (in case of at least 25%  participation in the company paying the dividends) and at the rate 10% in all other cases; •a withholding tax rate of 5% on interest; •a withholding tax rate of 5% on royalties; •income derived by a resident of one state from immovable property (including income from agriculture or forestry) located in the other state may be taxed in that other state; •gains realised by a resident of one state from the alienation of shares or other participation interests of which more than 50 % of the  value is derived directly or indirectly from immovable property situated in the other state, may be taxed in that other state. According to the DTT, double taxation will be eliminated by applying a deduction from the tax of the Georgian resident in amount of the tax paid in Belarus and vice versa. The DTT was ratified by Georgia on 12 June 2015 and by Belarus on 10 November 2015. Per the treaty’s provisions, it entered into force on 24 November 2015 and is effective as of 1 January 2016. Anna Pushkaryova, Country Director, Eurofast Georgia T. +995 595 100 517+995 595 100 517 E.