Ukraine ratifies double tax treaty with Qatar

Ukraine

On 28 February 2019, the Ukrainian parliament ratified the Convention and Protocol “On Avoidance of Double taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income” with the nation of Qatar.

Designed to promote the avoidance of double taxation, the prevention of fiscal evasion and the mutual reduction of tax barriers for foreign investment, both the Convention and Protocol were signed in Doha on 20 March 2018.

The Convention provides for the following tax rates for dividends, interest and royalties, which are in line with the OECD Model Tax Convention:

  • Dividends 10% or 5% – the reduced tax rate applies if the dividend recipient is the beneficial owner (not in a partnership), which directly holds at least 10% of the capital of the dividend-paying company.
  • Interest 10% or 5% – the reduced tax rate applies for interest paid on any loan granted by a bank or in connection with the sale on credit of any industrial, commercial or scientific equipment.
  • Royalties 10% or 5% – the reduced tax rate applies when royalties are paid for the copyright of any work, patent, trade mark, secret formula, process or piece of information of an industrial, commercial or scientific kind.

Ukraine's President is expected to sign the law for ratifying the Convention and Protocol, which will go into force after mutual notification by both states.

Legislation: Law “On Ratification the Convention between the Government of Ukraine and the Government of the State of Qatar “On Avoidance of Double taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income””, dated 28 February 2019.

For more information on this taxation treaty with Qatar, please contact one of the authors of this publication.