The Protocol on Amendments to the Convention between Ukraine and Austria on Avoidance of Double Taxation was signed

Today, Serhiy Marchenko, the Minister of Finance, signed the Protocol on Amendments to the Convention between the Government of Ukraine and the Government of the Republic of Austria on Avoidance of Double Taxation and Prevention of Tax Evasion with respect to Taxes on Income and Capital (hereiafter - the Convention).

This Protocol amends the Convention in order to bring its provisions in line with the OECD Model Tax Convention on Income and on Capital.

The protocol provides, in particular, for an increase in the dividend tax rates from 10% to 15% and interest from 2% to 5%. Royalty tax rates were also increased, from 0% to 5% for the use of any copyright in scientific works, patents, etc., and from 5% to 10% for the use of copyright in literary or artistic works.

In addition, to the increase in rates, new provisions will be introduced: the "Right to Benefits", which limits the application of the Convention's preferential positions if the main purpose is to obtain such benefits, and the "Exchange of Information", which expands the ability of the competent authorities of the Contracting States to exchange tax information.

The subjects of the implementation of the Protocol are the Ministry of Finance of Ukraine and the State Tax Service of Ukraine.