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Avoidance of double taxation amended

11/12/2015 14:23
Cyprus and Ukraine signed today a protocol amending the convention for the avoidance of double taxation between the two countries.

According to an announcement by the ministry of finance, on December 11th 2015, at Kiev in Ukraine the Protocol amending the Convention for the Avoidance of Double Taxation and the prevention of fiscal evasion with respect on taxes, on income was signed, between the Republic of Cyprus and the Government of Ukraine.

The signed protocol will come into force not earlier than the 1st January 2019, date that the existing Convention will expire. The existing Convention has been signed on the 8th of November 2012 and entered into force on the 1st of January 2014, the announcement states.

The Protocol will enhance further trade and economic relations, between the two States.

During the negotiations, a most favourable nation clause has been adopted, for taxes on interest, dividends, royalties and capital gains.

"This clause is considered of high importance as Cyprus will be treated equitably with other competing jurisdictions" it is added.

The protocol is based on the Model Tax Convention for the Avoidance of Double Taxation OECD (OECD Model Convention for the Avoidance of Double Taxation on Income).

"Upgrading and expanding the network of Double Tax Conventions, is of high economic and political importance and aims for further strengthen the frame, in Cyprus as its standing an international business center is elevated", the announcement concludes.