Ukraine and Australia signed convention to eliminate double taxation at IMF and World Bank Annual Meetings

During the Annual Meetings of the IMF and the World Bank, the Government of Ukraine and the Government of Australia signed a Convention for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance.

The document was signed by the Minister of Finance of Ukraine Sergii Marchenko, and the Treasurer of Australia Jim Chalmers.

The signing of the Convention marks an important step in strengthening economic relations between Ukraine and Australia. It establishes clear and fair rules to ensure that the income of residents of both countries is not taxed twice.

Once in force, the Convention will help attract Australian investment to Ukraine, reduce financial barriers, and make tax procedures simpler and more predictable.

For businesses and individuals, this means protection from double taxation, greater transparency, and more favorable conditions for trade and investment.

“Ukraine continues to work on enhancing the transparency and stability of its tax environment. The Convention establishes clear rules for Ukrainian and Australian companies operating in both markets. It reduces the tax burden, removes barriers to investment, and promotes the development of bilateral trade,” said Minister of Finance of Ukraine Sergii Marchenko.

The Convention defines the allocation of taxation rights between the two countries for certain types of income, including:

• Dividends: 5% if the shareholder company owns at least 10% of the capital of the company paying the dividends.

• Interest: 5% for financial institutions; 10% in other cases.

• Royalties: 10%.

The Convention also includes provisions aligned with modern OECD standards, particularly regarding the prevention of tax abuse, exchange of tax information, and resolution of disputes between the two countries.