Today, June 15, the Minister of Finance Serhii Marchenko signed the Protocol on Amendments to the Convention between the Government of Ukraine and the Government of the Republic of Austria on Avoidance of Double Taxation and Prevention of Tax Evasion with respect to Taxes on Income and Capital Gains (hereinafter - the Convention).
The said Protocol amends the Convention in order to bring its provisions into line with the OECD Model Tax Convention on Income and Capital.
The protocol provides, in particular, for an increase in dividend tax rates from 10% to 15% and interest from 2% to 5%. Royalty tax rates were also increased, from 0% to 5% for the use of any copyright in scientific works, patents, etc., and from 5% to 10% for the use of copyright in literary works or works of art.
In addition to the increase in rates, new provisions are to be introduced: "Right to benefits", which limits the application of preferential provisions of the Convention, if the main purpose is to obtain such benefits, and "Exchange of information", which expands the capacity of competent authorities of Contracting States to exchange tax information.
The subjects of implementation of the Protocol are the Ministry of Finance of Ukraine and the State Tax Service of Ukraine.