This article was first published on Tax@Hand, and is reproduced on this blog with the authorization of its authors.
On 18 June 2025, the French tax authorities (FTA) published guidelines on the consequences of Belarus’s temporary suspension of certain provisions of its tax treaty with France.
Background
On 13 April 2024, Belarus announced the suspension from 1 June 2024 through 31 December 2026 of certain provisions of the France-USSR tax treaty of 4 October 1985, which continues to apply in relations between France and Belarus, notably articles 7 (dividends), 8 (interest), and 11 (taxation of income derived from the exploitation and alienation of property).
In response, the French government suspended the same provisions for the same period (pursuant to the reciprocity principle).
Administrative guidelines
The guidelines confirm the temporary suspension of articles 7, 8, and 11 of the treaty and provide the following clarifications:
- The treaty’s 15% withholding tax (WHT) rate does not apply to dividends whose distribution was decided between 1 June 2024 and 31 December 2026 (article 7).
- The 10% WHT rate does not apply to interest relating to the suspension period. The rule granting exclusive taxation rights to the recipient’s state of residence for interest from credits and bank loans and interest from commercial credits is also suspended for the same period (article 8).
- Income derived from the exploitation and alienation of property may not benefit from article 11 of the tax treaty if it is earned between 1 June 2024 and 31 December 2026, or if the alienation occurred during the same period.
Until the end of the suspension period, French domestic rules, including domestic WHT rates, will apply without restriction.
Taxes paid in Belarus on income that is temporarily not covered by the tax treaty will not qualify for a tax credit in France. However, such taxes may be deductible in France.