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The document was backed by 231 MPs with the required minimum of 226 votes.
The Verkhovna Rada, Ukraine's parliament, has passed presidential bill No 0216 to ratify the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, which will allow Ukraine to amend all existing international treaties in order to avoid double taxation.
Read alsoUkraine signs convention to prevent profit shifting
The document was backed by 231 MPs with the required minimum of 226 votes, an UNIAN correspondent reported on February 28.
An explanatory note to the draft law says that Ukraine on January 1, 2017, joined the Extended Cooperation Program within the Organization for Economic Cooperation and Development (OECD) and committed to implement the minimum standard of the Action Plan to combat base erosion and profit shifting (BEPS).
"Ratification of the Multilateral Convention will allow Ukraine to complete Action 6 and Action 14 of the minimum standard of the BEPS Action Plan, which are binding for Ukraine, and at the same time make the necessary changes to all applicable international treaties of Ukraine on avoidance of double taxation," the explanatory note says.
Thus, Ukraine is bound to implement four Actions out of the fifteen proposed. In particular, Action 5 on countering harmful tax practices; Action 6 on preventing treaty abuse; Action 13 on transfer pricing documentation and country-by-country reporting; and Action 14 on more effective dispute resolution mechanisms.
At the same time, Action 6 and Action 14 provide for mandatory changes to existing international bilateral agreements for the avoidance of double taxation.
As UNIAN reported earlier, on July 23, 2018, Ukraine signed a multilateral convention on the avoidance of double taxation.
Ukraine in 2017 joined the Organization for Economic Cooperation and Development in Europe (OECD) Action Plan to combat base erosion and profit shifting (BEPS).