Ratification of New Double Tax Treaty Between Ukraine and Cyprus
On 4 July 2013, the Verkhovna Rada of Ukraine accepted the Law of Ukraine “On Ratification of a Convention between the Government of Ukraine and the Government of Cyprus for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and Protocol thereto” (hereinafter the Convention is referred to as the “Double Tax Treaty” or “DTT”).
The respective Double Tax Treaty and Protocol were signed on 8 November 2012 in Nicosia, during the visit of the President of Ukraine Viktor Yanukovych to the Republic of Cyprus.
The Law will enter into force upon its signing by the President of Ukraine and publication in official mass media. The Double Tax Treaty and Protocol shall enter into force on the date of receipt of the last written notification of completion of all domestic procedures, which are required for documents to enter into effect, by the Contracting States. In fact, provision of the new DTT and Protocol will have effect from the 1 January of a year following the year when the DTT is ratified by the parties, i.e. not earlier than 1 January 2014, provided that all the aforementioned procedures are completed.
The new DTT will replace the old treaty, which was signed between USSR and Cyprus on 29 October 1982.