Foreign Minister of Ukraine Pavlo Klimkin and Finance Minister of Qatar Ali Shareef Al-Emadi have signed an agreement on avoiding double taxation and preventing income tax evasion between the government of Ukraine and Qatar. According to a Thursday posting on the website of the Finance Ministry of Ukraine, avoiding double taxation of individual and company income will be achieved thanks to the distribution of the taxation right for some types of income between Ukraine and Qatar and thanks to taking into account payment of taxes in one country by a taxpayer in his or her tax obligations of another state.
The ministry said that the agreement envisages taxation of dividends at 5% if the ultimate owner of dividends is a company that owns at least 10% of the company that pays dividends and 10% for the rest of the cases.
Royalty rate is set at 5% and 10% and the same rates are approved for taxation of interest. The ministry said that Ukraine and Qatar are to finish internal procedures required for the ratification of the agreement.
