28 March 2018

Dear Sir/Madam,

We are pleased to provide a copy of our new Flash report (can be found in the attachment).

Ukraine and Qatar signed Double Tax Treaty

On 20 March 2018 Ukraine and Qatar signed Double Tax Treaty for the avoidance of double taxation and prevention of fiscal evasion (further – “DTT”) between two countries.

In order for the DTT to enter into force the Ukrainian and Qatari Parliaments should ratify it and then exchange the ratification letters. The reduced withholding tax rates envisaged in the DTT become effective on 1 January of the year following the completion of the notifications procedure. Thus, if the DTT enters into force before 31 December 2018, the taxpayers engaged in transactions with residents of Qatar will be able to apply reduced withholding tax rates and enjoy other benefits of the DTT starting from 1 January 2019.

Specifically, the DTT introduces the following reduced WHT rates:

Type of income

Tax rates

Dividends
  • 5%, if the 10% ownership threshold is met;
  • 10% in other cases.

Interest
  • 5%, if the loan is granted by a bank or any other financial institution or if interest is related to the sale of equipment on credit;
  • 10% in other cases.

Royalties
  • 5%, if royalties are paid for the use of copyright of scientific work, patent, trade mark, secret formula, process or information concerning industrial, commercial or scientific experience;
  • 10% in other cases.


We will continue monitoring the status of the DTT and provide further updates.

Contacts:

Camiel van der Meij, Partner & TLS Leader, camiel.van.der.meij@pwc.com
Slava Vlasov, Partner, Tax and Legal Services, slava.vlasov@pwc.com
Anna Nevmerzhytska, Senior Manager, Tax and Legal Services, anna.nevmerzhytska@pwc.com

75 Zhylyanska Street | Kyiv | Tel:  +380 44 354 0404 | Fax: +380 44 354 0790 | pwc.ukraine@ua.pwc.com |  www.pwc.com/ua 


This flash report is produced by PricewaterhouseCoopers’ tax and legal services department. The material contained in this alert is provided for general information purposes only and does not contain a comprehensive analysis of each item described. Before taking (or not taking) any action, readers should seek professional advice specific to their situation. No liability is accepted for acts or omissions taken in reliance upon the contents of this alert.
©2018 Limited liability company «PricewaterhouseCoopers». All rights reserved. PwC refers to the Ukrainian member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

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We are pleased to inform that this Flash report is also available in Ukrainian and can be sent to you upon request.
Ми раді повідомити, що цей  Flash report також доступний українською мовою і може бути наданий Вам за запитом.