On 05 June 2024, the Ukrainian Parliament ratified the Convention between the Government of Ukraine and the Government of Japan on the Elimination of Double Taxation with Respect to Income Taxes and the Prevention of Tax Evasion and Avoidance and the Protocol thereto.
The Convention will apply to:
- corporate income tax, personal income tax for Ukraine;
- income tax, corporate tax, special reconstruction income tax, local corporate tax, local residence taxes for Japan.
The Convention provides, in particular, the following rates of taxation:
- Dividends – standard rate is 15%, reduced rate (applicable if the beneficial owner of dividends owns 25% or more of the company paying dividends) is 5%;
- Interest – standard rate is 10%, reduced rate of 5% applies in some cases;
- Royalties – 5%.
The Convention and the Protocol thereto shall enter into force upon completion of the relevant internal procedures by both jurisdictions.
For further information please contact Dmytro Ivanusa, Partner at divanusa@mazurivanusa.com