THE PARLIAMENT RATIFIED THE AGREEMENT ON THE AVOIDANCE OF DOUBLE TAXATION WITH QATAR
On 28 February 2019 the Verkhovna Rada (the Parliament) of Ukraine ratified the Convention on Avoidance of Double Taxation with Qatar and the Protocol to this Convention. The Convention was signed by the Governments of Ukraine and Qatar on 20 March 2018 in Doha.
The Convention provides for the rate of a withholding tax – 5% from the amount of royalties for the use of author’s rights to scientific works, trademarks, patents, know-how, and 10% for other types of intellectual property objects.
The reduced tax rate may be applied by the payer of the royalty on his own if he can reaffirm that the receiver of royalties is a resident and a beneficiary. The receiver of royalties can credit the paid withholding tax to his capital tax in accordance with the national legislation.
We would like to remind that, as of today, the protocols to the conventions on avoidance of double taxation with the United Kingdom, Austria, the Netherlands and Switzerland are also awaiting ratification. In current versions of these conventions the rate of the tax on royalties is 0%. The protocols provide for its raising up to 5% and 10% for the use of different intellectual property objects. These amendments are the result of implementation of the Program on Combating Tax Evasion developed by the Organization for Economic Co-operation and Development (OECD).