Signing of a tax treaty between Ukraine and Malta

05.09.2013

The development of the double taxation treaty between Ukraine and Malta started already on the first day of August 2013 (http://hbcomp.ru/about/news_and_mailings/news_jurisdictions/3760/).

As a result, on the 4 day of September, Ukraine and Malta signed the Convention on the avoidance of double taxation. Interest rates, which have been declared yet in the draft Convention on the website of the Ministry of Finance of Ukraine, remained unchanged. They are:

- The total tax rate on dividends - 15%

- The company with at least 20% capital which pays the dividend – the tax rate will be 5%

- Withholding tax on interest and royalties - 10%.

Based on:kmu.gov.ua

Expert’s opinion

Every new agreement brings an additional bonus to the country. Ukraine changes the Tax Code, introduces new transfer pricing rules, and makes “black” lists. And all this against the background of constant talk about Europe, and in November there was a signing of association agreement concerning the membership in the EU.

It is not easy to enter the foreign arena, especially without the support of a professional tax advisor. It would be better to choose a “clean” way of doing business. In other words to choose such countries for your business, which have the abovementioned treaties with Ukraine, to build an optimal business scheme, pay taxes, and sleep peacefully!

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)