The Minister of Foreign Affairs of Ukraine Pavlo Klimkin and the Finance Minister of Qatar Ali Al-Ahmadi have signed an agreement between the governments of Ukraine and Qatar on the avoidance of double taxation and the prevention of income tax evasion, Interfax-Ukraine reports.
According to the message published by the finance ministry on Thursday, the avoidance of double taxation of individuals and corporations is going to be achieved through the distribution of taxation of different types of income between Ukraine and Qatar, and through reporting the taxes previously paid within the other country in taxation obligations of a taxpayer.
According to the ministry’s message, the protocol provides for the 5% taxation of dividends, if the end beneficiary of dividends is a corporation that owns at least 10% of the company paying the dividends and 10% in all other cases.
The royalty rate is to be set at 5% and 10%, with the same rate applied to interest payments.
According to the finance ministry, Ukraine and Qatar need to finalize internal government procedures that are necessary for the ratification of the protocol.
On 13 March, it was reported that Ukraine had signed a