• Українською
  • Government proposes to Parliament to amend Double Taxation Convention with the United Arab Emirates
    Ministry of Finance of Ukraine, posted 19 May 2021 15:08

    On May 19, the Cabinet of Ministers of Ukraine decided to submit to the Parliament of Ukraine the Protocol between the Government of Ukraine and the Government of the United Arab Emirates on Amendments to the Agreement between the Government of Ukraine and the Government of the United Arab Emirates for the Avoidance of Double Taxation and the Prevention of Tax Evasion for Taxes on Income and Capital.

    The main provisions of the Protocol provide for:

    • increasing the rate of taxation of interest in the source country from 3% to 5%;
    • increasing the rate of taxation of "technical" royalties from 0% to 5% in the source country;
    • a new version of the article on exchange of information, which provides for a significant increase in the ability of the competent authorities of the Contracting States to exchange tax information;
    • a new article entitled "Right to Benefit", which limits the applicability of the preferential provisions of the Agreement if the main objective is to obtain such benefits.

    The mentioned changes and rates correspond to the general practice of conclusion of such agreements and their protocols by Ukraine with other countries of the world. Similar rates are contained in the majority of conventions and protocols to them, concluded by Ukraine.