Cyprus-Ukraine double taxation agreement |
Negotiations are continuing between Ukraine and Cyprus to conclude a new double tax agreement. At present the 1982 agreement between the former USSR and Cyprus remains in effect but the Ukrainian Council of Ministers is eager to replace this, and at one stage submitted draft legislation to the Ukrainian parliament to cancel the agreement. However, recognising the importance of Cyprus as an investment and trading partner, the Ukrainian parliament rejected the bill, and instructed the Ukrainian government to continue negotiations with the Cyprus authorities in order to reach a mutually-acceptable compromise on outstanding issues.
This is an important matter for both countries. Investment from Cyprus into Ukraine over the past six years has been in excess of US$6 billion, making Cyprus the second largest investor in Ukraine after Germany. Over the same period Ukraine was the largest investor into Cyprus, with investment flows of US$5.8 billion.
Cyprus’s European environment, combined with its political stability, its transparent legal system, its high standard of living and its world-class banking, accounting and legal services have contributed to its development as an important international financial centre. Furthermore, in addition to the double taxation treaty, there are a number of other agreements that protect investors of the two countries, including a trade agreement that has been in effect since 2000, an agreement on legal assistance in civil cases and various partnership and co-operation agreements between the EU and Ukraine.
Cyprus’s Finance Minister, Charilaos Stavrakis, has been assured by officials of the Ukrainian government that there is no intention of including Cyprus in the country’s tax black list, and he has expressed his confidence that Ukraine and Cyprus will soon sign an agreement to avoid double taxation for the benefit of both countries.
neocleous.com , 13.06.2008 |
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25-06-2008 |
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