Convention defined tax rates for dividends, interest and royalties
The government has decided to sign Convention between the Government of Ukraine and the Government of Malta for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and Protocol with it, the press service of the Ministry of Finance informs.
Order of Cabinet of Ministers of Ukraine granted authority to sign the Convention and Protocol to the Minister of Finance of Ukraine Yuriy Kolobov.
Draft of Convention includes a tax rate for dividends, interest and royalties (comply with the OECD Model Convention):
dividends - standard rate 15%; 5% - for dividends received by a company that owns at least 20% of capital of the company paying such dividends;
interest - standard rate 10% - on interest from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, particularly from government securities and from bonds or debentures, including premiums and fees paid in respect of such securities, bonds or debentures;
royalty - standard rate 10% - for royalty regarding fees for usage or for right to use, any copyright of literary, artistic or scientific work (including cinematograph films, any films or tapes used for television or broadcasting), any patent, trade mark, design or model, plan, secret formula or process, or for information (know-how) concerning industrial, commercial or scientific experience.
