The governments of Ukraine and Malta are intending sign a convention on the avoidance of double taxation and the prevention of tax evasion.
It approved by Ukraine’s Cabinet of Ministers on July 24, 2013. Under the draft convention, the withholding tax rates on dividends, interest and royalties comply with the recommended provisions set out by the OECD Model Tax Convention on Income and on Capital.
Under the convention, dividends will be taxed at a standard rate of 15 percent, with dividends received by the owner of more than 20 percent of the company paying the dividend being taxed at 5 percent. The maximum withholding tax rate for interest and royalties under the draft convention is 10 percent.
