The Cabinet of Ministers, by its decision, agreed on a bill on the denunciation of the agreement between the governments of Ukraine and Russia on the avoidance of double taxation of income and property and the prevention of tax evasion.
The government made the relevant decision at a meeting on April 29.
“The purpose of the bill is to denounce the international agreement with the aggressor state in connection with the introduction of martial law in Ukraine and to ensure the protection of national interests and national security of Ukraine,” the government said .
The adoption of the law will allow to denounce the agreement and stop the application of the norms established by it.
After the denunciation of the agreement, all income of Russian residents received from sources in Ukraine will be subject to the general tax rate of 15% established by the Tax Code of Ukraine, instead of preferential rates established by the agreement: 5% – for dividends; 10% or 0% – for interest; 10% – for royalties;
In addition, the termination of the agreement will not allow losses to the budget of Ukraine due to the transfer of tax paid in Russia by Ukrainian residents operating in the Russian Federation.
Ukraine will also be released from its obligations to exchange information with Russia on tax issues.
Recall that the Cabinet of Ministers also allocated more than UAH 119 billion to the Ministry of Defense at a meeting on April 29, which will be used for salaries, equipment and other needs.
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