Following its approval on 4 July by
Verkhovna Rada, the Ukrainian parliament, the law on
ratification of the Convention between the Government of Ukraine
and the Government of the Republic of Cyprus for the Avoidance of
Double Taxation and Prevention of Fiscal Evasion with Respect to
Taxes on Income and the Protocol was signed by the President of
Ukraine on 23 July.
The explanatory memorandum to the law observes that, "As a
result of the conclusion of the said Convention entrepreneurs of
both countries will ensure that income derived from business
activities in the territory of another country as well as from
sources in that other country in the form of dividends, interest
and royalties are not subject to double taxation. The Convention
also ensures that entrepreneurs a State shall be taxable in another
state under the same conditions as the proprietors of that other
State. Moreover, the Convention aims to prevent tax evasion, thus
creating additional conditions for deepening Ukrainian-Cypriot
economic relations."
The double tax agreement will enter into force when written notices
of ratification have been exchanged and will have effect from the
following 1 January. Until then the double tax agreement between
the USSR and Cyprus will apply.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
