Category: Ukraine

Ukraine Ratifies Tax Treaty With Malta

On April 13, 2017, the Ukrainian Parliament ratified its tax treaty with Malta, which provides for lower withholding tax rates on dividends, interest, and royalties. Under the deal, the withholding tax rate for dividends would be capped at 15 percent. A special rate of five percent would apply to dividends...

New tax regime for Ukrainian loan participation notes issued on international capital markets

January 2017 – On 21 December 2016, Ukraine’s parliament adopted the Law “On Amendments to the Tax Code of Ukraine Concerning Improvement of the Investment Climate in Ukraine” No. 1797-19. With effect from 1 January 2017, the legislation introduces new rules for the taxation of interest payable by Ukrainian economic...

Ukraine: Tax Residency Status: Issues To Consider When Moving Abroad

Recent social and economic developments have had a powerful impact on many Ukrainian citizens and businesses and have led them to look for a better life beyond the borders of Ukraine. Obviously, Ukrainians moving abroad is not something new. Periods of economic crisis in almost every state are usually accompanied...

Ukraine officially joins BEPS project

On November 22, 2016, the Minister of Finance of Ukraine handed an official letter on Ukraine’s accession to the BEPS (Base Erosion and Profit Shifting) plan to the Secretary-General of OECD. Being the final stage in the process of joining the project, Ukraine is to become a member of the...

Ukraine’s Cabinet of Ministers endorses draft agreement on FATCA with US

Ukraine’s Cabinet of Ministers has approved a draft agreement with the U.S. government to improve the implementation of tax rules and apply the provisions of the U.S. foreign account tax compliance act (FATCA). The decision is outlined in government resolution No. 821-r dated November 9, 2016 posted on the government’s...

Ukraine and Luxembourg sign a Protocol modifying their double tax treaty

On 30 September 2016 Ukraine signed a protocol (the “Protocol”) modifying the not-yet-in-force Convention between the Government of Ukraine and the Government of the Grand Duchy of Luxembourg for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital (the “Convention”)....

UK aid programme “failing to tackle tax avoidance and evasion”

A report by the Independent Commission for Aid Impact (ICAI) has criticised the Department for International Development’s (DfiD) approach to tackling tax avoidance and its alleged failure to achieve value for money on HMRC collaboration DfiD has failed in its efforts to fully include developing countries so that they benefit...

Oxfam in call for crackdown to combat money launderers using Scottish shell firms

OXFAM has called for action to close a legal loophole that has seen a booming number of Scottish shell firms used for tax dodging and money laundering. The global charity warned that the country was becoming one of the world’s “secret tax havens where the privileged minority hide billions from...

Ukraine, Austria Increase DTA Withholding Tax Rates

Ukraine and Austria have agreed to sign a protocol to their double taxation agreement to increase withholding tax rates on dividends, interest, and royalty income. The protocol increases the withholding tax rate for dividends and interest to 15 percent and five percent, respectively. Additionally, the royalty rate for patents, trademarks,...

IMF to Help Ukraine Improve Enforcement of Anti-Money Laundering Laws

According to reports, the International Monetary Fund is aiding the Ukrainian government in its efforts to fix the country’s weak anti-money-laundering regulations. WASHINGTON (Sputnik) – The International Monetary Fund (IMF) is aiding the Ukrainian government in its efforts to fix the country’s weak anti-money-laundering regulations, the IMF said in a...

EU threatens sanctions on money laundering, tax evasion havens

BERLIN – A European Union official threatened Thursday to sanction Panama and other nations if they don’t cooperate fully to fight money laundering and tax evasion, after a leak of data showed the small country remains a key destination for people wanting to hide money. The 11.5 million documents from...

Panama Papers Raise Privacy Issues, Whether This Is A ‘New Normal’

The release of the so-called “Panama Papers” – more than 11 million documents and personal files detailing financial information and offshore accounts of prominent individuals – dominated the international news cycle this week. It’s raised questions about the role of technology and the expectation of privacy. “We saw this in...

The ‘extraordinary’ loophole that saw Russia threaten to brand UK as tax haven

Russia has come close to blacklisting the UK as a tax haven as concerns grow over Scotland’s booming offshore business. The Kremlin’s Finance Ministry had announced that it would officially equate Britain with traditional “fiscal paradises” like Panama, the British Virgin Islands and the Caymans. Such a humiliating move would...

Scotland advertised across Eastern Europe as tax haven

SCOTLAND is being advertised as a tax haven across Eastern Europe. The country’s allegedly lax company formation laws are being promoted by firms in Latvia, Russia, Ukraine and Belarus as authorities black list more traditional “fiscal paradises”. A new round of publicity for Scotland as an “offshore zone” began this...

Cyprus: Taxation – Amendments On The Double Tax Treaty Between The Republic Of Cyprus And Ukraine

Representatives of the Cyprus and the Ukrainian governments have signed, in Kiev, on Friday, 11 December 2015, a protocol amending their Double Tax Avoidance Treaty. The protocol is based on the Model Tax Convention for the Avoidance of Double Taxation OECD. The changes need to be ratified by both the...

Latvian regulator hits Privatbank with record fine for Moldova bank fund laundering

RIGA – The Latvian Financial and Capital Markets Commission (FCMC) on Dec. 11 imposed a record 2-million-euro fine on Ukrainian-owned A/S Privatbank and ordered the dismissal of its CEO and managing board for violations of money laundering and other banking regulatory laws in connection with the alleged plundering and collapse...

Anastasiades to sign deals with Kiev

Cyprus will sign agreements with Ukraine on Friday, as President Nicos Anastasiades visits Ukraine to make deals on bilateral issues such as double taxation, higher education, energy, and other areas of cooperation. Anastasiades is on an official visit to Ukraine and will meet on Friday with the President of Ukraine...

Malta: Malta’s Double Tax Treaties – November 2015

In order to encourage the growth of international trade including that of financial services, successive Maltese governments have sought to conclude double tax treaties with important trading partners as well as with emerging countries. This policy is expected to continue in the future. To date, treaties are in force with...

Transparency International: G20 failing on corruption

Corporate corruption is still prevalent in rich Group of 20 nations despite their pledges last year to close loopholes, according to Transparency International. It has listed Brazil, China and the US among the offenders. Transparency International on Thursday labeled this weekend’s G20 summit in Turkey as a mere “photo opportunity,”...

Ukraine tax spat risks loans worth $4 bln for 2015

KIEV, Nov 2 (Reuters) – The Ukrainian parliament and the finance ministry are close to deadlock over planned tax cuts, lawmaker Nina Yuzhanina said on Monday, threatening reforms that are crucial to unlocking a further $4 billion in international loans. Ukraine promised to revamp its tax system under an International...

Putin Allies Said to Be Behind Scrutinized Deutsche Bank Trades

Several close associates of Russian President Vladimir Putin may have benefited from Deutsche Bank AG trades that are now coming under the glare of U.S. prosecutors, according to people familiar with the matter. The U.S. Department of Justice is investigating whether Germany’s biggest bank properly vetted as much as $6...

Cypriot Ministry of Finance announces a Protocol amending the DTA between Cyprus and Ukraine after its expiry has been concluded

On September 8, 2015 the Cypriot Ministry of Finance published an announcement titled: “Conclusion of a Protocol that will amend the Convention for the Avoidance of Double Taxation and the prevention of fiscal evasion with respect on taxes on income between the Republic of Cyprus and the Government of Ukraine...

Managing the transfer pricing of intangibles in the oil and gas sector

Intangible assets in the oil and gas industry have become incredibly valuable. Taxpayers need to understand how to manage compliance to mitigate their transfer pricing risks What do recent Western economic sanctions against Russia; the US’ growing energy independence; and ultra-deepwater oil and gas (O&G) discoveries off the coast of...

$1.8 Billion IMF Ukraine Bailout Money Deposited in Ukraine Oligarch Kolomoyskyi’s Cyprus Offshore Bank Account

Funds Discovered in Kolomoyskyi’s Cyprus Kitty Investigative reporters have discovered that IMF bailout funds intended for Ukraine have mysteriously found their way to a Cyprus bank account controlled by notorious Ukrainian oligarch Ihor Kolomoyskyi. A huge chunk of the $17 billion in bailout money the IMF granted to Ukraine in...

President Ratifies Ukrainian Tax Code Amendments

Ukraine’s President, Petro Poroshenko, has ratified three acts containing changes to tax law in the areas of transfer pricing, the obligations of taxpayers, and tax rules for non-profit organizations. The first, “On Amendments to the Tax Code of Ukraine Concerning Transfer Pricing,” increases the thresholds for companies’ transactions that will...

Jaresko: Ukraine, Cyprus agree to revise taxation agreement

Ukraine and Cyprus have agreed to review bilateral agreements on taxation to prevent the withdrawal of capital to offshore zones, Finance Minister Natalie Jaresko wrote on Facebook. “After very lengthy negotiations, we’ve finally taken an important step in the fight against capital withdrawal to offshore zones: we have with the...

Cabinet to remove Austria from list of risky countries for transfer pricing on August 1, 2015

Ukraine’s Cabinet of Ministers will remove Austria from the list of countries transactions with whose counterparties are subject to control under the law on transfer pricing on August 1, 2015. This is stipulated in Cabinet resolution No. 677 dated July 1, 2015, which is available on the government website on...