Ukraine seeks agreement with Australia to eliminate double taxation of income – draft convention
The Cabinet of Ministers of Ukraine has approved a draft convention between the governments of Ukraine and Australia on the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance.
As reported by representative of the Cabinet of Ministers in the Verkhovna Rada Taras Melnychuk in the Telegram channel, the relevant decision was made at a government meeting on Wednesday.
In particular, the convention for the elimination of double taxation establishes the rules for the distribution between Ukraine and Australia of the rights to tax certain types of income received by residents of one contracting state from sources in another contracting state, in particular, it limits the right of the country that is the source of income to tax dividends, interest and royalties.
In addition, the convention defines methods for the elimination of double taxation by the contracting states, establishes arrangements for the exchange of tax information between the tax authorities of Ukraine and Australia and the conduct of a mutual agreement procedure carried out by the competent authorities if a resident of one of the states believes that as a result of the actions of one or both states he is or will be subject to taxation that is not in accordance with the provisions of the convention.