During the Annual Meetings of the IMF and the World Bank, the Convention between the Government of Ukraine and the Government of Australia for the Elimination of Double Taxation with Respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance was signed. The document was signed by the Minister of Finance of Ukraine Serhiy Marchenko and the Head of the Australian Treasury Jim Chalmers.
The conclusion of the Convention is an important step in the development of economic relations between the two states. It establishes clear and fair rules so that the income of residents of Ukraine and Australia is not taxed twice. Once the Convention enters into force, it will help attract Australian investment to Ukraine, reduce financial barriers and make tax procedures simpler and more predictable. For businesses and citizens, this will mean protection from double taxation, clearer rules and the creation of favorable conditions for trade and investment.
“Ukraine continues to work on increasing the transparency and stability of the tax environment. The Convention creates clear rules for Ukrainian and Australian companies operating in the markets of both countries. It reduces the tax burden, removes barriers to investment and promotes the development of bilateral trade,” stressed the Minister of Finance of Ukraine, Serhiy Marchenko.
The document defines the mechanism for distributing taxation rights for certain types of income between Ukraine and Australia. A rate of 5% is set for dividends if the owner company owns at least 10% of the capital of the company paying them. For interest, the rate is 5% for financial institutions and 10% in other cases. For royalties, the rate will be 10%.
