Double Taxation Agreement Between Cyprus and Ukraine
- Author Michael Chambers
- Published January 28, 2016
- Word count 422
The Cyprus taxation scheme together with the simple bureaucratic procedures motivates business people and investors to launch their business activities in Cyprus. In addition, Cyprus maintains double tax treaties with more than 40 countries. Recently, the Minister of Finance of the Republic of Cyprus together with his Ukrainian counterpart launched a Protocol that will amend the current double tax treaty between the two countries, signed in 2012.
The particular Protocol signed between the two Financial Ministers will enter into force no earlier than the 1st of January 2019. In this point, it should be clarified that the Convention signed in November 2012 entered into force on the 1st of January 2014.
As a result of this Protocol, the economic and trade bonds between the two countries will be further developed. Furthermore, this development will lead to the emergence of new business and investment opportunities.
Main provisions of the agreement:
The agreement takes into consideration taxes on interests, dividends, royalties and capital gains. The Cyprus tax legislation together with this Protocol establishes Cyprus as one of the most optimal choices for Ukrainian business people and investors.
The main provisions of the Protocol are:
•TAXES ON INTERESTS
Following the existing Convention, the withholding tax on interest paid by a Ukrainian debtor to a beneficial owner who is based in Cyprus is 2%. Once the Protocol enters into force, this particular rate will be augmented to 5%.
•DIVIDENDS
The current double tax agreement offers for a withholding tax of 15% on dividends paid by Ukrainian companies to Cypriot shareholders, a reduced rate of 5% in case the beneficial owner owes more than 20% of the share capital of the company that pays the dividend or has invested more than €100,000 in shares. Based on this protocol, a lower tax rate will apply only if both conditions are satisfied.
•ROYALTIES
Following the provisions of the Treaty, the withholding tax rate is 5% for royalties related to scientific work, patent, trademark, the process of information regarding industrial, commercial or scientific experience. The withholding tax of 10% applies to other royalties.
•CAPITAL GAINS
The current Treaty implies that capital gains coming from movable property (including shares in property/ rich companies), whose assets embed mainly immovable property are taxable only in the country of residence of the individual who makes the disposal. Once the Protocol enters into force, profits on shares in property/ rich companies will be taxable in the country where the immovable property is located as well.
It should be stressed that the current Convention facilitates the elimination of double taxation by providing a tax credit method of tax relief.
Michael Chambers& Co.LLC provides a wide spectrum of legal services.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Why Bangladesh Needs the ACNCC Now?
- How a Calgary Personal Injury Lawyer Can Maximize Your Compensation
- Navigating the Aftermath: Your Guide to Finding a Car Accident Lawyer Near Me with Karasik Law Group
- What to Expect from a Trademark Search Company
- Are You Unknowingly Signing Away Your Mechanic Lien Rights?
- The Role of Diplomacy in Unrecognized States: A Case Study of Somaliland
- Ontario’s New Homeowner Protection Act
- Why Nanda & Associates Lawyers Are the Top Choice in Brampton
- Essential Contracts Every Freelancer Should Have
- What to Do When Your Ex Violates a Custody Agreement
- How Houston Personal Injury Lawyers Handle Insurance Companies
- How to Prepare for Your First Meeting with a Personal Injury Lawyer in Orlando
- Best Books for Defense lawyer for Felony Robbery
- Establishing a Company in Serbia: A Guide to Business Ownership Types
- How To Get Compensation for a Work Injury
- Navigating Compliance for Personal and Professional Contributions
- Unraveling the Mysteries of Intellectual Property Law: A Comprehensive Guide
- Boston Car Accident Attorneys and Insurance Companies: A Complex Relationship
- How a Los Angeles Car Accident Attorney Can Help You
- Slip and Fall in Chula Vista: Who is Accountable?
- Can I Get Compensated After a Truck Accident in Los Angeles
- Local Tax Attorney vs Competitors: A Comparative Analysis of Legal Services in Orlando
- J. David Tax Law: Your Top Tax Levy Lawyer in North Carolina
- Who Can Garnish Tax Refunds: Your Questions Answered
- Unlock the Secrets to Handling a North Carolina Notice of Deficiency
- The Importance of Financial Services: Enabling Debt Management and Legal Debt Settlement
- Justin C Freeman
- What are the Eligibility Criteria for a Spouse Visa? How to find right Spouse Visa Attorney in Houston?
- Importance, Benefits, and Tips for Hiring a Houston Immigration Attorney
- Importance and Tips of Hiring a Houston Immigration Attorney