An anti-offshore protocol has been signed between Ukraine and Austria

On June 15, 2020, the Protocol to the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital between Ukraine and Austria was signed. The said Protocol amends the Convention in order to bring its provisions into line with the OECD Model Convention.

What it changes:

Dividend tax rates have been increased from 10% to 15% and interest from 2% to 5%.

Increased royalty tax rates paid:

– for the use of any copyright for scientific work, patent, etc. – from 0% to 5%,

– for the use of copyright to literary works or works of art – from 5% to 10%.

New provisions have been introduced:

– “Right to benefit”, which limits the application of the preferential provisions of the Convention if the main purpose is to obtain such benefits,

The subjects of implementation of the Protocol are the Ministry of Finance of Ukraine and the State Tax Service of Ukraine.

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