Schedule

Excellency

I am in receipt of your note dated 7th March 1995 which states as follows:

“I have the honour to refer to the Convention between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Belarus for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital which has been signed today and to make on behalf of the Government of the United Kingdom the following proposals for the purpose of applying:

Article 13: Capital Gains:

Approved Stock Exchange

1

For the purposes of paragraph (2)(a) of Article 13 of this Convention, the term “approved Stock Exchange” in the case of Belarus means a Stock Exchange created in conformity with the laws of the Republic of Belarus.

Article 23: Elimination of double taxation:

Interest Payable By A Permanent Establishment Of A Resident Of A Contracting State

2

In computing tax payable on its profits, there shall be allowed to a permanent establishment of a resident of a Contracting State, a deduction for interest incurred for the purpose of its trade or business whether paid to a bank or other person and without regard to the period of the loan, but that deduction shall not be available to the extent that the interest paid exceeds, for whatever reason, the amount which would have been agreed upon in the absence of a special relationship between the payer and the beneficial owner of the interest.

Wages, Salaries And Other Remuneration For Personal Services Payable By A Permanent Establishment Of A Resident Of A Contracting State

3

In computing tax payable on its profits, there shall be allowed to a permanent establishment of a resident of a Contracting State, a deduction for actual wages, salaries and other remuneration for personal services paid by the permanent establishment and incurred for the purpose of its trade or business.

Interest Payable By A Company Or Other Taxable Entity Which Is A Resident Of A Contracting State

4

In computing tax payable on its profits, there shall be allowed, to a company or other taxable entity which is a resident of a Contracting State and which is at least 50 per cent owned by a resident or residents of the other Contracting State, a deduction for interest incurred for the purpose of its trade or business whether paid to a bank or other person and without regard to the period of the loan, but that deduction shall not be available to the extent that the interest paid exceeds, for whatever reason, the amount which would have been agreed upon in the absence of a special relationship between the payer and the beneficial owner of the interest.

Wages, Salaries And Other Remuneration For Personal Services Payable By A Company Or Other Taxable Entity Which Is A Resident Of A Contracting State

5

In computing tax payable on its profits, there shall be allowed, to a company or other taxable entity which is a resident of a Contracting State and which is wholly or partly owned by a resident or residents of the other Contracting State, a deduction for actual wages, salaries and other remuneration for personal services paid by the company or other entity and incurred for the purpose of its trade or business.

Withholding Tax

6

Each Contracting State shall endeavour to establish procedures to enable taxpayers to receive income dealt with under Articles 10, 11 and 12 without the imposition of withholding taxes where the Convention provides for taxation only in the state of residence. Where the Convention provides for taxation in the State where the income arises each State shall endeavour to establish procedures to enable taxpayers to receive income under deduction of tax at the rate provided for in the Convention. Where a claim is made by a taxpayer, tax withheld at source in a Contracting State at the rate provided for under domestic law shall be repaid in a timely manner where that tax is withheld at a rate in excess of that provided for under the terms of the Convention.

If the foregoing proposals are acceptable to the Government of the Republic of Belarus I have the honour to suggest that the present Note and Your Excellency’s reply to that effect shall be regarded as constituting an agreement between the two Governments in this matter which shall enter into force at the same time as the entry into force of the Convention.”

The foregoing proposals being acceptable to the Government of the Republic of Belarus, I have the honour to confirm that Your Excellency’s Note and this Reply shall be regarded as constituting an agreement between the two Governments in this matter which shall enter into force at the same time as the entry into force of the Convention.

I take this opportunity to renew to Your Excellency the assurances of my highest consideration.

On behalf of the Government of the Republic of Belarus

Sergei Ling