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Favourable tax accord with Ukraine

08/09/2015 21:35
Cyprus and Ukraine have concluded negotiations on a Protocol amending the Convention for the Avoidance of Double Taxation and the prevention of fiscal evasion with respect to taxes on income, when it expires, a Ministry of Finance press release, issued here today, says.

“During the negotiations a most favourable nation clause has been agreed, for the taxes on interest, dividends, royalties and capital gains,” it points out.

This clause, it says, "is considered of high importance as Cyprus will be treated equitably with other jurisdictions.”

The text agreed “will contribute to further developing the trade and economic links between Cyprus and the Government of Ukraine, as well as with other countries.”

“Upgrading and expanding the network of Double Tax Conventions is of high economic and political importance and aims to further strengthen and attract foreign investment in Cyprus, as its standing as an international business center is elevated,” the press release says.

It is further noted that negotiations took place, on 2 July 2015 and that “the agreed protocol, when signed, will come into effect not earlier than the 1st January 2019, date that the existing Convention will expire.”

The existing Convention was signed in November 2012 and entered into force on the 1st of January 2014.