Ukraine’s Cabinet of Ministers approved a draft law on 18 March 2026 to ratify the 2025 income tax treaty with Australia, aiming to eliminate double taxation, reduce withholding tax rates on dividends, interest, and royalties, and promote cross-border investment.
Ukraine’s Cabinet of Ministers approved a draft law to ratify the 2025 income tax treaty with Australia on 18 March 2026. This announcement was made by the Ministry of Finance on 19 March 2026.
The agreement will eliminate double taxation concerning taxes on income, capital, fringe benefits, and withholding tax without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance between the two countries.
The treaty will provide a general withholding tax rate of 15% on dividends. Intercorporate dividends on non‑portfolio holdings of at least 10% will get a 5% rate. This lowers Australia’s default rate (30%) by at least 15% for Ukrainian businesses. This will encourage them to invest in Australia. It reduces Ukraine’s current rate (18%) by at least 3% for Australian businesses investing in Ukraine. This will lower the cost of doing business for Australians in Ukraine.
The treaty will provide a general withholding rate of 10% on interest.
The treaty will provide a rate of 10% on royalties. This reduces Australia’s default rate (30%) by 20%. This makes it cheaper for Australians to access Ukraine’s intellectual property. It lowers Ukraine’s current rate (18%) by 8%. This incentivises Ukraine to use more Australian intellectual property.
The agreement will take effect after the exchange of ratification instruments.
Earlier, Australia and Ukraine signed an income tax treaty on 16 October 2025.
