On 29 December 2021, the Ukraine Ministry of Finance has announced that the Government has approved amendments to the law ratifying the tax treaty related measures to prevent Base Erosion and Profit Shifting (MLI). BEPS MLI entered into force with respect to Ukraine on 1 December 2019.
Changes are made in particular:
- to the list of international treaties of Ukraine covered by the Multilateral MLI Convention;
- in the part of the notifications on supplementing the international agreements of Ukraine with a preamble, which states that the agreements should not apply to persons who use its provisions for tax evasion;
- in the part of notifications on the existence in international agreements of Ukraine of provisions on limiting the possibility of applying preferential provisions of agreements, if the main purpose is to obtain such benefits;
- in the part of notifications on the existence in international agreements of Ukraine of provisions on the prohibition of division (splitting) of contracts into several parts in order to reduce the time period after which a particular activity is considered a permanent establishment;
- in the part of notifications on establishing the possibility of initiating by the taxpayer the procedure of mutual agreement (resolution of tax disputes) both in the state of his residence and in the state where the activity of such a person is carried out.
