On 9 October 2017, Minister of Finance Ukraine Oleksandr Danyliuk and State Secretary of Great Britain for Europe and America Alan Duncan signed the Protocol on amendments to the Agreement on the Avoidance of Double Taxation between Ukraine and the United Kingdom during their bilateral meeting in London.

The Protocol is aimed to avoid double taxation of the incomes of private persons and legal entities generated on the territory of both countries.

The Protocol between Ukraine and the UK stipulates the following areas;

  • Taxation of dividends at the 5% rate – if the actual owner of the dividends is a company (other than a partnership) directly owning at least 20% of the capital of the company which pays the dividends; for all other cases, the tax rate has been increased from 10% to 15%.
  • The tax rate for interest rates has been increased from 0% to 5%;
  • The tax rate for royalties has been increased from 0% to 5%;
  • The tax data exchange clause has been amended significantly expanding the exchange capacities of the Parties.

Ukraine and the United Kingdom will conduct the internal state procedures for the ratification of the Protocol.