It has been officially yesterday reported by the Ministry of Finance of the Republic of Cyprus that after negotiations a protocol was concluded on the 2nd of July 2015 that will amend, upon its expiration, the existing Convention for the Avoidance of Double Taxation and the prevention of fiscal evasion with respect on taxes on income.
During the negotiations, a most favourable nation clause has been agreed regarding the taxes on interest, dividends, royalties and capital gains which is considered of high importance as Cyprus will be treated equitably with other competing jurisdictions.
The content of the Protocol has been agreed between the two negotiation teams of the Contracting States and it is estimated to contribute to further development of the trade and economic bonds between Cyprus and Ukraine, as well as with other countries.
Combined with the beneficial provisions of the Cyprus tax legislation and practice, the Protocol reinforces the position of Cyprus which has firmly established itself as the most favourite choice of Ukrainian inbound and outbound investments.
It has been agreed for the protocol to come into force not earlier than the 1st January 2019, date that the existing Convention will expire. The existing Convention which entered into force on the 1st of January 2014 has been signed on the 8th of November 2012.
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