A double taxation avoidance protocol (“the Protocol”) amending the double tax treaty between Cyprus and Ukraine was signed on 11th of December 2015 in Kiev. The signed protocol will come into force not earlier than the 1st of January 2019, the date that the existing Convention will expire,” a press release issued by the Cyprus Ministry of Finance says.

It is added that the existing Convention was signed on the 8th of November 2012 and came into force on the 1st of January 2014.
The protocol will “enhance further trade and economic relations, between the two states,” the press release points out. It is further noted that during the negotiations, “a most favourable clause has been adopted, for taxes on interest, dividends, royalties and capital gains.” This clause, the ministry explains, “is considered of high importance as Cyprus will be treated equitably with other competing jurisdictions.” The protocol itself is based on the OECD Model Tax Convention for the Avoidance of Double Taxation.
“Upgrading and expanding the network of Double Tax Conventions, is of high economic and political importance for Cyprus,” it concludes.

The full text of the Protocol is available upon request.