Ukrainian Finance Minister Oleksandr Danylyuk and British Minister of State for Foreign and Commonwealth Affairs Alan Duncan have signed a protocol on amending the agreement between the governments of Ukraine and the United Kingdom on avoiding double taxation, the Ukrainian Finance Ministry has reported.
According to the protocol, the signing of the protocol helps avoid tax evasion and simultaneously reduce the pressure on law-abiding taxpayers, as well as to ensure the exchange of tax information.
The protocol foresees the taxation of dividends at a rate of 5 percent if the actual owner of dividends is a company with a minimum of 20 percent of the capital of the company that pays dividends. For other cases, the rate was raised from 10 percent to 15 percent. Also, according to the document, the parties agreed to increase the rate of interest taxation from 0 percent to 5 percent and royalty taxation from 0 percent to 5 percent, the ministry said.
