Ukraine denounces the Agreement on Avoidance of Double Taxation with Russia
By its decision, the Government of the weather bill on the denunciation of the Agreement between the Government of Ukraine and the Government of the Russian Federation on the avoidance of double taxation of income and property and prevention of tax evasion, made on February 8, 1995 in the village. Kyiv and ratified by the Verkhovna Rada of Ukraine on October 6, 1995.
The purpose of the bill is to denounce the international agreement with the aggressor state in connection with the imposition of martial law in Ukraine and to ensure the protection of national interests and national security of Ukraine.
Adoption of the law will allow denouncing the Agreement and terminating the application of the norms established by it.
The consequences of the denunciation of the Agreement are:
1) prevention of replenishment of the budget of the aggressor’s country by providing Ukraine with preferential tax conditions for residents of the Russian Federation operating in Ukraine. Denunciation of the Agreement to all income of Russian residents received from sources in Ukraine will be applied after the general tax rate – 15% set by the Tax Code of Ukraine, instead of the preferential rates set by the Agreement: 5% – on dividends; 10% or 0% – on interest; 10% – on royalties;
2) prevention of losses of the budget of Ukraine due to crediting the tax paid in Russia by residents of Ukraine operating in Russia;
3) withdrawal of Ukraine from the undertaken obligations to exchange information with the Russian Federation on tax.