Rada ratifies protocol amending convention with Austria for double taxation avoidance

The Verkhovna Rada has ratified the protocol with amendments to the convention with Austria for avoidance of double taxation and prevention of tax evasion with respect to taxes on income and property.

The Ministry of Finance said on its website the protocol provides for an increase in the general tax rate of dividends from 10% to 15% and interest from 2% to 5%.

"Increased were also the rates of royalties paid for the use of any copyright on scientific work, patent, etc. from 0% to 5%, for the use of copyright on literary works or works of art from 5% to 10%," the Ministry of Finance said.

In addition to the increase in rates, it is envisaged to supplement the convention with new articles on limiting the possibility of applying the preferential provisions of the convention, if the main purpose is to obtain such benefits, and on expanding the ability of the competent authorities of Austria and Ukraine to exchange tax information.

"These changes and rates correspond to the general practice of Ukraine's conclusion of such agreements and protocols to them with other countries of the world – similar rates are contained in most of the conventions and protocols to them, concluded by our state," the ministry explained.

Source: www.en.interfax.com.ua