Parliament passes law on abolition of double taxation with Japan
Kyiv • UNN
The Verkhovna Rada has ratified the Ukrainian-Japanese Convention on the elimination of double taxation, which sets restrictions on the taxation of dividends, interest and royalties between the two countries to facilitate economic relations and reduce tax barriers.
The government adopted a law on ratification of the Intergovernmental Ukrainian-Japanese Convention on double taxation with Japan, which was signed on February 19 this year in Tokyo.
This was reported by The Ministry of Finance, writes UNN.
The law was adopted to provide a legal framework for the ratification of the Convention and Protocol signed on February 19, 2024 in Tokyo, which will allow for the completion of all necessary domestic procedures. This regulates the distribution of rights to tax certain types of income between Ukraine and Japan. The agreement between Ukraine and Japan sets the following restrictions on income taxation::
Dividends: the total tax rate is 15%;
Interest: the total tax rate is 10%;
Royalties: the royalty tax rate is 5%.
These measures will help reduce tax barriers for businesses between the two countries. After ratification, this agreement will enter into force 30 days after the exchange of ratification documents.
This step should contribute to the development of economic relations between Ukraine and Japan, more favorable conditions for foreign investment and trade, as well as reduce tax barriers. The convention and protocol will be managed by the Ministry of Finance of Ukraine and the state tax service of Ukraine.
recall
Earlier, Energy Minister Herman Galushchenko met with Japanese Ambassador to Ukraine Matsuda Kuninori, as well as with Matsunaga Hideki, chief representative of the Office of the Japan International Cooperation Agency JICA in Ukraine, where issues were discussed restoring damaged power systems and preparing for winter.
