REUTERS
The agreement would help counteract the erosion of the tax base and the withdrawal of profit from taxation.
The Verkhovna Rada, Ukraine's parliament, has ratified the protocol between the Ukrainian government and Switzerland's Federal Council to introduce amendments to the bilateral Convention on avoidance of double taxation regarding income and capital.
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A total of 307 lawmakers backed the relevant bill (No. 0004) on September 18, with the required minimum of 226 votes.
Ukrainian Deputy Finance Minister Yuriy Heletiy, reporting on the bill, said that the agreement would help counteract the erosion of the tax base and the withdrawal of profit from taxation.
"The protocol was signed in Davos on January 24, 2019. It complies with the updated standards of the Organization for Economic Co-operation and Development (OECD), and base erosion and profit shifting (BEPS) rules. These rules provide for an increase in interest and royalty rates from zero to 5%, addition of a new article on improving the mutual coordination procedure, and the expansion of information exchange mechanisms," he said.