The Protocol amending Ukraine-Cyprus Tax Treaty is signed
PwC, Kyiv, Ukraine
Mon, Dec, 14, 2015
On 11 December 2015 the Ministry of Finance of Ukraine and the Ministry of Energy, Trade, Industry and Tourism of Cyprus signed a Protocol amending the Double Tax Treaty between Ukraine and Cyprus (DTT).
If ratified by the Ukrainian and Cyprus parliaments, the following changes to the DTT will become effective on 1 January 2019:
- Capital gains from sale of shares which derive more than 50% of their value from immovable property situated in Ukraine will be taxed in Ukraine at 15% WHT;
- In order to apply 5% WHT on dividends distributed to Cyprus the investor will be required to: (i) hold at least 20% of the company’s shares and (ii) make an investment of at least 100,000 EURO into the company’s capital;
- The WHT on interest payments will increase from 2% to 5%.
We will continue to monitor the status of the tax treaty in order to provide you with further updates.
Camiel van der Meij, Partner & TLS Leader, firstname.lastname@example.org
Slava Vlasov, Partner, Tax and Legal Services, email@example.com
Oksana Borovets, Senior Manager, Tax and Legal Services, firstname.lastname@example.org
75 Zhylyanska Street | Kyiv | Tel: +380 44 354 0404 | Fax: +380 44 354 0790 | email@example.com | www.pwc.com/ua
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