• 19/07/2024 01:10

Ukraine and Japan signed the Double Taxation Convention. What is known

On February 19, 2024, the Minister of Finance of Ukraine Sergei Marchenko signed the Convention between the Government of Ukraine and the Government of Japan on the Elimination of Double Taxation with respect to Income Taxes and the Prevention of Tax Evasion and Avoidance and the Protocol thereto.

Ukraine and Japan signed the Convention on the Elimination of Double Taxation. What is known

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What does this mean

“The signing of this agreement opens up new opportunities for our countries, helps create favorable conditions for investment and strengthen economic relations between Ukraine and Japan,” noted Finance Minister Serhiy Marchenko.

The Convention establishes the rules for the distribution between Ukraine and Japan of taxation rights for certain types of income received by residents of one Contracting State from sources in the other Contracting State.

Read on “Censor.NET” : In Tokyo, Shmygal invited the Japanese to become part of the “Ukrainian economic miracle”

In particular, the right of the source country to tax dividends (5% for dividends received by a company of a Contracting State owning at least 25% of the capital of a company of another Contracting State that pays such dividends), interest (10% and 5 % if the beneficial owner of the interest is a bank, insurance company or securities dealer, or a recognized pension fund, or if the interest is paid on debt claims arising from the sale of equipment or goods or the provision of services on credit) and royalties (5%). /p>

In addition, the Convention defines methods for eliminating double taxation by Contracting States, establishes agreements on the exchange of tax information between the tax authorities of Ukraine and Japan.

Recall

As wrote “ Ministry of Finance”, in the context of full-scale Russian aggression, Japan is one of the leaders in supporting the country in all possible areas. Japan has already provided more than $4.6 billion in support, including about $372 million in grants.

minfin.com.ua

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