Ukraine, Austria raise tax rates in fight against tax evasion

Thursday, June 30, 2016 - 17:59 (EEST) Section: Latest news

Ukraine and Austria have agreed to increase tax rates on dividends, interest and income when carrying out mutual transactions, as part of a revision of the Convention on Avoidance of Double Taxation and Prevention of Fiscal Evasion, the Ukrainian Finance Ministry reported.
”The Ministry of Finance is actively working to eliminate tax loopholes exploited for tax evasion. To this end, the Finance Ministry continues its work to bring the existing treaties for the avoidance of double taxation in line with international standards,” the ministry stressed summing up the outcome of negotiations held in Vienna (Austria) with the participation of the Finance Ministry and State Fiscal Service officials.
According to the report, tax rates on dividend income were increased from 10% to 15%, tax rates on interest income – from 2% to 5%, royalty income is taxed at 5%, instead of a zero tax rate earlier effective. Royalty rates for the use of copyrighted literary works, art, including motion picture films, rose from 5% to 10%.
As UNIAN reported earlier, in March 2016, the Finance Ministry announced plans to hold negotiations on the revision of double taxation conventions with the Netherlands, United Kingdom, Belgium, Switzerland, and Austria.