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posted 9 years ago
The Ministry of Finance of Cyprus announced on 08 September
2015 the conclusion of the negotiations with Ukrainian Ministry of Finance. The
two Contracting States agreed to a Protocol that will amend the Convention for
the Avoidance of Double Taxation and the prevention of fiscal evasion with
respect on taxes on income when it expire.
The agreed protocol when signed will come into effect not earlier than the 1st
January 2019, date that the existing Convention will expire. The existing
Convention has been signed on the 8th of November 2012 and entered into force
on the 1st of January 2014.
During the negotiations a most favourable nation clause has been agreed, for
the taxes on interest, dividends, royalties and capital gains. This clause is
considered of high importance as Cyprus will be treated equitably with other
jurisdictions.
The text has been agreed between the two negotiating teams of the Contracting
States and will contribute to further develop the trade and economic links
between Cyprus and the Government of Ukraine, as well as with other countries.
Upgrading and expanding the network of Double Tax Conventions, is of high
economic and political importance and aims to further strengthen and attract
foreign investment in Cyprus as its standing an international business centre
is elevated.
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