A Convention between the Government of Ukraine and the Government of Australia for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance was signed during the Annual Meeting of the International Monetary Fund and the World Bank.
This is stated in the message of the Ministry of Finance, the Ukrainian News reports.
The Convention establishes clear rules so that the income of residents of both countries is not taxed twice.
For businesses and citizens, this means protection from double taxation, more transparent rules, and favorable conditions for trade and investment.
The document defines the mechanism of distribution of taxation rights for certain types of income between states, in particular:
- Dividends: 5 % - if the company-owner owns at least 10 % of the capital of the company that pays them
- interest: 5 % - if the company-owner owns at least 10 % of the capital of the company that pays them
- interest: 5 % - for financial institutions, 10 % - in other cases
- royalties: 10 %.
The Convention also includes provisions that meet modern OECD standards, in particular on the prevention of tax abuse, exchange of tax information and resolution of disputes between states.
As the Ukrainian News agency earlier reported, Danylo Hetmantsev wants to introduce a 50% tax on bank profits in 2026.
During 2023-2024, the government decided to tax the excess profits of banks at the end of the year.
But this year, the tax was not raised and banks will pay corporate income tax at a basic rate of 25%.
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