Dear Colleagues and Associates,
On the 8th of November 2012, the governments of the Republic of Cyprus and the Ukrainian People’s Republic concluded a new double tax treaty replacing the 30 year old USSR - Cyprus treaty. The new treaty aims to put an end to the long standing uncertainty that existed in the future investment relationship between the two countries and to create a new framework that will ensure that a stable tax environment will exist in the years to come.

The treaty allows Cyprus to remain one of the most beneficial routes to invest in Ukraine and it is our belief that investments in Ukraine through Cyprus will be continue to increase, as operating in a stable tax environment is considered as vital for the correct evaluation and planning of future investments. The new double tax treaty in combination with the favourable tax and legal framework in Cyprus guarantees this required stability and promotes investment.

This publication summarizes the most significant amendments that may be of interest for the international investor doing business through Cyprus and can also be downloaded from our website at http://www.kinanis.com/publications.html.

Our Tax Department is ready to assist you with any clarifications you may need and to provide any consultations on any future steps that need to be taken by your company in light of the above amendments.

Kind Regards,

Charalambos Meivatzis
Senior Manager – Head of Accounting Division and Tax Department