Ukraine, Austria resolve double taxation issue

The Verkhovna Rada, Ukraine's parliament, has ratified a protocol that amends the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income between Austria and Ukraine.

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The protocol provides for the following increases: in the general rate of taxation of dividends from 10% to 15%; the total interest rate, from 2% to 5%; royalty tax rates for the use of copyright for scientific work, patents, models, etc., from 0% to 5%; and the royalty tax rate for the use of copyright in literary works and works of art, from 5% to 10%, the explanatory note to the bill said.

Background

In October 2020, the Cabinet of Ministers approved a draft law to ratify a protocol with amendments to the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income between Austria and Ukraine. The Cabinet also supported the government's resolution to submit the protocol to the Verkhovna Rada for ratification.